Huafeng Spandex: Increasing Profit Space And Looking Forward To Industry Turning Point

< < p > May 3rd released < a href= "//www.sjfzxm.com > > Huafeng spandex < /a > Research Report, data show that in 2013 1-3, the company achieved operating income of 488 million yuan, an increase of 41.83% over the same period last year, operating profit of 19 million 310 thousand yuan, operating profit of -2889 million in the same period last year, the net profit attributable to the parent company was 18 million 860 thousand yuan, the same period last year was -2736 million, a substantial loss in the same period last year, and realized 0.03 yuan per share.

At the same time, the company expects net profit of 65 million yuan -8200 million yuan in 2013, corresponding to earnings per share of 0.09 yuan -0.11 yuan.

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< p > 2012, the company put into operation 15 thousand tons / year of high temperature membrane fabric spandex, so the company's total capacity reached 57 thousand tons / year, the country's first production capacity.

While expanding the scale, the company also pays attention to the improvement of product quality, and stores a batch of new products, such as high temperature resistant, high resilience spandex, etc., with a higher differentiation rate.

In the development of a href= "//www.sjfzxm.com/news/index_c.asp" > spandex business < /a >, the company set up a Liaoning subsidiary in 2011 to engage in the production and sale of cyclohexanone. At present, the project is in progress, and it is expected to contribute to the company in the future.

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< p > the profit margins of spandex increase, and the industry inflection point will come.

In recent years, a href= "//www.sjfzxm.com/news/" > spandex < /a > main raw material PTMEG expanded rapidly, and the downstream 90% was mainly used for spandex manufacture. Therefore, compared with the spandex industry, PTMEG is in an excess capacity situation, which is conducive to reducing the cost of the spandex industry.

However, after a href= "//www.sjfzxm.com/news/index_c.asp" > spandex industry < /a > has experienced more than two years of rapid expansion and downturn, few new capacity will be put into operation in the next few years, and profits will continue to improve in the future.

Analysts note that the price difference between spandex and PTMEG (spandex price is reduced by PTMEG, similar to spandex Maori space) in the near future is expanding. Spandex price recovery has also contributed to the first quarter growth of the company. Analysts believe that after several years of low industry, the spandex industry will be turning point.

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< p > the company expects earnings per share for 2013-2014 years to be 0.14 yuan and 0.17 yuan respectively, corresponding to yesterday's closing price, corresponding to 53 times and 43 times of dynamic P / E respectively.

Although analysts estimate the spanning point of the spandex industry will be coming, there is still some uncertainty. Analysts are also conservative in the profit forecast process. Based on the company's 55 times valuation in 2013, the corresponding reasonable price is 7.7 yuan, giving the company the "holding" rating for the first time.

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