Fangda Carbon (600516) Annual Report 2018 and 2019 First Quarterly Comment: Q1 Graphite Electrode Price Trend Slows Company Performance
The company’s 2018 performance was the best in history, and many financial indicators were beautiful.
The company’s net profit attributable to its mother was 55 in 2018.
93 ppm, the best in history, an increase of 54% in ten years; operating net cash flow 57.
1.4 billion, a record high, an increase of 65 in ten years.
2%; ROE is 50.
1%, ROIC is 57.
14%, asset-liability ratio dropped to 16.
02%, the company’s multiple financial indicators are beautiful.
In 2018, the company’s average carbon product sales price and gross profit per ton increased significantly.
In 2018, the company’s carbon product output was 18 inputs, increasing by 1 each year.
4%; the average selling price is as high as 63222 yuan / ton, a 44% increase over the years; gross profit per ton is 48611 yuan / ton, an annual increase of 35%.
The company plans to increase 4 shares for every 10 shares in 2018.
9 shares without dividends.
The company’s 2018 annual report disclosed that in order to meet the company’s production and operation and project construction funding needs, to ensure the company’s development and long-term interests of shareholders, the company’s capital reserve for every 10 shares 4 increased.
9 shares, no dividends, no bonus shares.
The price of graphite electrodes in the market dropped, and the company’s 2019Q1 performance 武汉夜生活网 hit a new low of nearly seven quarters.
The company’s net profit attributable to the mother in Q1 20197.
1.3 billion, a year-on-year decrease of 62.
36%, down 33% from the previous month.
23%, a new low in the past seven quarters since 2017Q3, mainly because the average price of graphite electrodes in the Q1 market has been falling by 53% and down by 17% from the previous month.
The company’s 2019Q1 single quarter ROE is 5%.
Prosperity of the carbon industry declined, and adjusted to “neutral” level.
The company’s performance in the first quarter of 2019 increased, and the price of graphite electrodes may fluctuate downward due to the recovery of supply in the future. We lower the company’s 2019-2020 and add a profit forecast for 2021. It is expected that the company’s EPS for 2019-2021 will be 1.
77 yuan, 1.
57 yuan, 1.
37 yuan.
In view of the declining prosperity of the carbon industry and the decrease in the company’s profit and dividends, we downgrade the company’s rating to “Neutral”.
Risks remind the risk of graphite electrode production restart; the risk of operating rate of electric furnace steel; the risk of rapid rise in raw material prices; the risk of poor corporate governance.