Fenglin Group (601996): Optimized product structure, new production capacity performance exceeded expectations

Event On July 14, the company issued an announcement of the 2019 semi-annual results increase.

In 2019H1, Fenglin Group achieved net profit attributable to its mother 8855.


760,000 yuan, an increase of 30% to 40% in ten years; net profit after deduction is 8645.


450,000 yuan, an annual increase of 40% -50%.

Among them, the company achieved net profit attributable to mother at 5,814 in Q2 2019.


170,000 yuan, an increase of 47 in ten years.

86% -65.

18%; net profit after deduction is 5664.


560,000 yuan, an increase of 49 in ten years.

19% -65.


  Our analysis and judgment increased the proportion of high value-added products and increased production capacity. The 19H1 performance was higher than expected. The increase in the proportion of high value-added products increased and the additional production capacity was successfully launched. Together, the company’s 19H1 performance increased.

The report summarizes that the company continues to increase the proportion of environmentally-friendly high-value-added artificial board products such as milled panels, moisture-proof boards, and aldehyde-free boards, and continues to meet the strong demand of high-end market segments.Production and sales have increased significantly.

In the first half of 2019, the company’s net profit attributable to mothers and net profit attributable to non-mothers reached 30% -40% and 40% -50%, respectively.

  In terms of products, in 2018 the company’s fiberboard, particleboard and forest trees achieved revenue 9 respectively.

90, 4.

49, 0.

48 ppm, an increase of 15 each year.

22%, 杭州夜网论坛 62.

76%, -29.

71%, accounting for 62% of the company’s revenue.

04%, 28.

16%, 2.


Among them, the technical renovation of the Nanning plant in 2018 (300,000 cubic meters of super particleboard per year) and the acquisition of the Chizhou plant, and the technical renovation (200,000 cubic meters of fiberboard per year) project have been completed to increase production capacity, driving the company’s artificial board business revenue growth.

At the same time, since the first rotation of the fast-growing forest land is 5 years, affected by changes in the area of harvestable forest land and the volume of the current period, the forest industry’s 2018 revenue has changed.

  Forest and board integration, leading production capacity, product safety and environmental protection capacity. As of the end of June 2019, the company has three fiberboard factories in 北京夜生活网 Nanning, Guangxi and Baise, Anhui, with a total fiber board capacity of 680,000 cubic meters; in Nanning, Guangdong, GuangdongHuizhou has two particleboard factories, with a total particleboard production capacity of 620,000 cubic meters; a total of 1.3 million cubic meters of fiberboard and particleboard production capacity.

The company issued a private offering to 7 investors, including Sofia, in 20181.

9.1 billion shares, raising a total of 6.

$ 4.5 billion will be used for the construction of a 600,000 cubic meter particleboard production line in Kawerau, New Zealand.

With the implementation of the New Zealand project, the company will become a leading domestic particleboard company in the future.

In addition, the company actively promotes forestation and afforestation, and continues to build the “forest-board integration” industry chain. Currently, it has about 200,000 mu of fast-growing and high-yielding forest land in Guangxi.

  At the same time, the company has advanced automated intelligent production equipment, focusing on the high-end market of safety and environmental protection.

At present, all the company’s particleboard and fiberboard production lines are continuous continuous press production lines. The main equipment is imported from Germany, Italy, Switzerland and other countries. It is the most advanced production line in the world at present, and the average single-line scale is much higher than the national average.The product structure of fiberboard is centered on high-end products such as formaldehyde-free board, milling board, moisture-proof board, and E0-grade low-odor board. The particleboard has been fully upgraded to E0-grade products.

  Investment suggestion: The company’s product structure is continuously optimized, production capacity is continuously upgraded and put into production, and future growth is expected.

We expect the company’s operating income to be 20 in 2019-2020.

25, 24.

7.8 billion, an increase of 26 each year.

77%, 22.

36%; net profit attributable to mothers is 1.

85, 2.

32 ppm, an increase of 33 per year.

58%, 24.

34%, corresponding to the latest PE of 18.

5 times and 14.

7x, maintain “Buy” rating.

  Risk warning: production capacity expansion, technical transformation is less than expected; downstream demand is sluggish, exceeding expectations.