China’s Boulder (600176): Glass fiber prices lead to increased profits

China’s Boulder (600176): Glass fiber prices lead to increased profits

3Q2019 performance is lower than our expected China Boulder announced 1?
3Q2019 results: Revenue 77.

4 ppm, an increase of ten years.

43%; net profit attributable to mother 15.

5 ‰, a year-on-year decrease of 19%, corresponding to a profit of 0.

44 yuan, lower than our expectations, preliminary is the glass fiber sales expectations and 3Q19 glass fiber prices fell faster than the previous month.

The company’s revenue in the third quarter of 19 was 26.

7.6 billion yuan, an increase of 2% / 4% from the same period last month, and net profit attributable to mothers4.

950,000 yuan, down 23% / 11% from the same period last month.

Development trend The decline in glass fiber prices has led to a significant reduction in profits.

In the first three quarters of 19, the company’s roving product sales volume was 126 tons, an annual increase of about 5%, of which high-end product sales increased by 15%. At the end of the third quarter, the company’s rovings basically achieved a balance of production and sales; electronic cloth sales increased by 114%,Basically achieve production and sales balance.

The company’s highest profit is mainly due to the decline in the price of glass fiber products. As of 2018, the glass fiber industry has increased production capacity, and the glass industry has a glut of supplies, which has led to a significant decline in the price of glass fiber this year. Among them, the price of rovings has fallen by more than 7%?
8% in the third quarter of 19, compared with the previous two quarters. The company expects that the price of rovings will still decline slightly. The price of electronic cloth has gradually dropped to nearly 50%. The price in the third quarter is at a historical low.Prices started to pick up.
Continue to strengthen cost advantages, leading the global profitability of fiberglass.

Although labor costs increased and raw material and natural gas prices rose in the first three quarters, the company achieved a reduction in manufacturing costs of approximately 2% through continuous technological improvements and management innovation.

In the third quarter of 19, the company achieved a gross profit margin of 38.

4%, same / cyclic ratio oxide 5.


7ppt, 1?
3Q19 achieved a gross profit margin of 39.

3%, ten years ago 4.

8ppt, although the price of 3Q19 fiberglass increased by a larger margin than the previous month, leading to a significant reduction in gross profit margin, the company’s profitability is still far beyond other aspects of the world.

Internationalization and intelligent development go hand in hand.

Boulder America Project 9.

6 The baseline glass fiber production capacity was ignited in May this year. At present, the production and operation are steadily advancing. At the same time, the Indian project is progressing steadily. The construction will soon begin.

Cost control is one of the company’s core competitiveness, which is transformed into the construction of the intelligent manufacturing base of the Tongxiang headquarters. We expect to help the company’s efficiency 合肥夜网 to a new level, thereby increasing the gap between the company and the relative.

Earnings Forecast and Estimates Due to the weaker-than-expected sales of glass fiber and rising prices, we lower our 2019/20 net profit forecast by 14% / 15% to 20.


9.6 billion.

The previous company previously corresponded to a 2019/20 P / E ratio of 14.


4x, lowering the target price by 4.

3% to 11 yuan, corresponding to 29.

3% growth space and 18/2019/20.


1x price-earnings ratio, maintain outperform industry rating.

Risk roving sales growth exceeded expectations, and glass fiber prices increased significantly.