Long Mang Baili (002601): The fourth price increase during the year and the industry maintains a high boom

Long Mang Baili (002601): The fourth price increase during the year and the industry maintains a high boom
Event: The company issued an announcement. According to the domestic and foreign titanium dioxide market conditions, starting from September 3, the company’s model titanium dioxide (including sulfate titanium dioxide, chloride titanium dioxide) sales price based on the original price to various domestic customersAn increase of RMB 500 / ton and an increase of USD 50 / ton for various international customers. The fourth price increase during the year broke through the industry to maintain a high market boom.In early 2019, the company raised prices twice on February 13 and March 7, respectively, and gradually accepted them after the market.In the first half of the year, the market price of titanium dioxide has been running steadily. After 6 months, it has been dragged down by weak downstream demand and prices have trended.With the advent of the traditional consumption peak season, the company implemented the fourth price increase only one month after the price increase on August 3, and China Nuclear Titanium White followed suit.In addition to the reasons for the peak season of consumption, lower inventory levels in the downstream and the tightness of overseas titanium ore resources provided the price increase with persistence.Product price increases not only have a positive impact on the performance 重庆耍耍网 improvement of various companies within the industry, but also play a positive role in maintaining the high prosperity of the industry. 20 The annual trial production of the chlorination process is progressing smoothly.On May 21, the company’s 20-input / year chlorination method second-stage production line was launched in Jiaozuo. The first 10-input / year production line’s total system operating time and load repeatedly hit record highs. In the fourth quarter, it will significantly contribute to the increase of titanium dioxide and performance.Another production line is expected to start testing at the end of September, and the production is highly certain. Xinli Titanium Industry’s resumed production work is under intense and orderly progress.Xinli Titanium has only 6 concentrations / year of chlorinated titanium dioxide production capacity, 1 ton / year of sponge titanium production capacity and 8 ton / year of high titanium slag production capacity.The resumption work is progressing smoothly. Currently, high titanium slag has been resumed. Sponge titanium is expected to resume production at the end of September. Titanium dioxide is expected to resume production in November, which has become a new growth point for the company’s performance. Maintain “Buy” rating.It is expected that the company’s net profit attributable to its parent from 2019 to 2020 will be 25.52/35.52/43.180,000 yuan, corresponding to EPS 1.26/1.75/2.13 yuan, PE 11/8/7 times, maintain “Buy” rating. Risk reminder: the risk of falling titanium dioxide prices, the risk of new production capacity is less than expected.

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