Dragon Python Bailey (002601): Titanium Dioxide Price Increases in Demand Season

Dragon Python Bailey (00260重庆耍耍网 1): Titanium Dioxide Price Increases in Demand Season
The company’s recent situation Longman Baili announced that starting from August 15, the sales price of the company’s various types of titanium dioxide on the basis of the original increase of 500 yuan / ton for domestic customers, international customers increased by $ 50 / ton. Commentary on low prices and overlapping demand expanded in the peak season, titanium dioxide prices ushered in an increase.6?In August, the off-season demand caused the price of titanium dioxide to fall. According to Baichuan Information, the current market price of Longman Baili titanium dioxide is 15,500?16,000 yuan / ton, down 3% since early June?5%, 8% lower than the same period last year?10%; the price of titanium concentrate imported from raw materials has risen, and the price of titanium concentrate in Kenya, Mozambique and other regions has increased by 3% since 6 months?8%; At the same time, the company’s titanium dioxide inventory is about 1.5 months, the order demand is stable.Taking into account the decline in the price of titanium dioxide in the early stage, the rise in the price of imported titanium concentrates and the change in demand seasons, the company raised the price of titanium dioxide by 500 yuan / ton (+ 3%). The export orders account for a relatively high level, and the industry chain is complete, and the company’s profitability industry leads.1H19 average export volume of titanium dioxide is 48.2 Initially, it only decreased by 2% each year. According to Baichuan Information, the output of titanium dioxide in the first half of 2019 increased by 8%, but the floor space of completed houses and the sales area of commercial buildings decreased by 12.7% / 1.8%, the domestic demand for titanium dioxide is not good, and the market competition is relatively fierce.Longman Baili titanium dioxide export orders accounted for a relatively high proportion, and at the same time, titanium dioxide and other raw materials, titanium dioxide profitability industry leading. The expansion of the production capacity of the chlorination method contributed to the growth, and the integrated layout enhanced profitability.At present, the second phase of the company’s 20-phase chlorinated titanium dioxide project is running well. At the same time, the capacity of the first phase of 6-chlorinated chlorinated titanium dioxide will be changed to 10 instead of the technology.The total production capacity of white powder will reach 30 inches, and the total production capacity of chlorinated titanium dioxide will help boost the company’s performance growth.At present, the company has a titanium concentrate production capacity of 80. At the same time, the company will use the titanium 佛山桑拿网concentrate resources in the Panxi area to construct a 30 precipitated titanium chloride slag project, which can fully meet the second phase of 20 chloride titanium dioxide production, which will further improve the company’s industrial chain and strengthenProfitability. It is suggested that we lower our 2019/20 profit forecast by 5% / 4% to 1 due to the decline in the price of titanium dioxide in the previous period.33/1.58 yuan / share.Currently the company is in line with the corresponding 2019/20 P / E ratio of 10.5/8.8 times. Revise down the target price by 9% to 20 yuan, which has 44% growth space compared with the previous one. The target price corresponds to 15/13 times P / E ratio of 2019/20, and maintain the outperform industry rating. Risks Titanium Dioxide Price Drops Sharply, Chlorine Production Capacity Release Exceeds Expectations