Sun Paper (002078): Three quarterly results slightly exceeded expectations Cultural paper contributed a major source of profit

Sun Paper (002078): Three quarterly results slightly exceeded expectations Cultural paper contributed a major source of profit

The company announced the third quarter report of 2019 and realized operating income of 164 in the first three quarters of 2019.

10,000 yuan, an increase of ten years.

81%; realized net profit attributable to mother 14.

85 ppm, a decrease of 17 per year.

57%; operating income in the third quarter of 2019 was 56.

25 trillion, a year down 0.

20%, an increase of 5 from the previous month.

63%; realized net profit attributable to mother 5.

98 ppm per year, an increase of 4 from the previous month.

37%, 18.

16%.

Core Views The performance of the three quarterly reports exceeded market expectations. In the third quarter, the quarter-on-quarter growth was positive.

The company achieved maximum profit in the single quarter of 2019Q7.

13 ppm each year, an increase of 16 from the previous month.

83%, 20.

10%, earnings improved significantly, the increase exceeded market expectations.

The company’s profitability improved significantly from the previous quarter, and Q3 achieved a gross profit margin of 23 in a single quarter.

84%, each year, the chain increased by 0.

70pct, 2.

07 points.

Q3’s profitability continued to improve, and we estimate that it was mainly due to the steady increase in profitability of cultural paper.

① In the third quarter, the gap between the price of cultural paper and wood pulp continued to widen, and the company’s profitability of cultural paper improved more than the industry average. ② The profitability of containerboard paper is currently in a substitute position, and only the raw materials contribute 武汉夜生活网 to the profit.

③The price of dissolving pulp has dropped to a historical low, and it is expected that the downward space has been limited.

The fourth quarter results are expected to continue to improve, and medium- and long-term growth is expected.

① The company’s fourth-quarter performance continued to improve quarter-on-quarter, and the logic of quarterly improvement during the year was fulfilled as scheduled; ② The company’s average annual compound growth rate of pulp and paper capacity in the next six years is 12%, and growth is expected.

Financial Forecast and Investment Suggestions We predict that the company’s EPS for 2019-2021 will be 0.

81, 0.

92, 1.

07 yuan (the original forecast EPS was 0.

81, 0.

88, 1.

09 yuan).

Considering that the company is in the leading position in the industry in 北京桑拿洗浴保健 terms of management level, cost control, etc., and Laos is the first to move upstream through a forward-looking layout, it is a leading paper company with an advantage in the layout of raw materials within the industry.Value, corresponding to the target price of 9.

16 yuan, maintain “Buy” rating.

Risks prompt the risk of rapid macroeconomic growth and terminal demand growth exceeding expectations; the risk that the company’s overseas projects will not advance as expected The risk that the company’s overseas projects will not advance as expected