Juhua Shares (600160) 2018 Annual Report Review: High Product Prosperity, 2018 Net Profit Hits Record High

Juhua Shares (600160) 2018 Annual Report Review: High Product Prosperity, 2018 Net Profit Hits Record High

Event: The company released its 2018 annual report on the evening of April 18th: the company achieved operating income of 156 in 2018.

5.6 billion, an annual increase of 13.

42%; total profit realized 26.

21 ppm, an increase of 120 in ten years.

15%; net profit attributable to shareholders of listed companies21.

5.3 billion, an annual increase of 136.


Comments: 1.

In 2018, the company’s net profit hit a record high, which was mainly due to the high prosperity of various products. In 2018, the company’s main product fluorochemical raw material prices rose 16

01%, the price of refrigerant rose by 22% year-on-year.

Prices of fluoropolymer materials rose by 34.

02%, the price of food packaging materials rose by more than 7.

01%, the price of petrochemical materials rose by more than 9.

7%, gross profit margin of fluorinated raw materials increased by 9.

53 monomers and 3 refrigerants.

31 monomers, fluoropolymers increased by 6.

1 single, food packaging materials increased by 5.

79 single, petrochemical materials increased by 4.

27 units.


The initial use of R22 refrigerant will be significantly reduced again.

According to the plan, R22 will be reduced by 35% in 2020, minus 10% that has been reduced in 2015, and will be reduced by 25% again in 2020. The main demand for R22 is in the maintenance market, and demand is large, so it can be expected that the supply and demand of R22 in 2020 will beIt can be very stressful.

The company’s R22 production capacity is the second in the country and will benefit from the increase in R22 prices.


The third-generation refrigerant is a significant greenhouse gas. The 28th meeting of the Montreal Protocol in 2016 adopted an amendment to reduce HFCs. It began to reduce its use gradually in 2019, including more than 100 in China.Each region will freeze production from 2024. As the world’s largest third-generation refrigerant producer, exports are expected to continue to rise.

The company is the world’s largest third-generation refrigerant manufacturer with a production capacity of more than 15 tons.

Investment rating: In 2018, the company’s products 淡水桑拿网 are booming, and net profit hits a record high. In 2019, the prices of various products have entered a downward channel. We have lowered 2019-2020 and added a 2021 profit forecast. It is expected that the company’s EPS in 2018-20 will be zero.

63, 0.

74, 0.

86 yuan, but the company is a leading fluorochemical company with the second R22 production capacity in China. We expect that the supply of R22 will be very tight in 2020. The company will benefit from the price increase, and therefore maintain a “buy” rating.

Risk reminder: the risk of large fluctuations in product prices; the risk of environmental protection falling short of expectations.


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