Long Mang Baili (002601): Proposed to bid for Xinli Titanium Industry to further improve the entire industrial chain of titanium products

Long Mang Baili (002601): Proposed to bid for Xinli Titanium Industry to further improve the entire industrial chain of titanium products
Event: The company intends to use its own funds and bank loans to bid for Yunnan Metallurgical Xinli Titanium Industry Co., Ltd. (hereinafter referred to as “Xinli Titanium”)Industry “)”) 68.10% equity and 52.1.9 billion claims.Listing base price 8.290,000 yuan, of which Xinli Titanium has 1 yuan of equity and 8 related debts.2.9 billion. Xinli Titanium Industry owns the titanium ore-titanium chloride white-sponge titanium industrial chain, which helps the company to build the entire titanium industrial chain layout.Xinli Titanium Industry is the country’s earliest titanium production and processing enterprise. It currently has domestic reserves of about 500 tons of titanium ore resources. The production capacity of chloride titanium dioxide is 6 replacements / year, and the production capacity of sponge titanium is 1 replacements / year.Slag capacity.The company has the same technology as Xinli Titanium Industry, and both use Tikan ‘s boiling chlorination technology, which will help the company to repair, technically modify, expand, and rapidly expand production capacity of Xinli Titanium production line to better meet domestic demand.Demand from foreign customers, thereby consolidating and improving the company’s leading position in the titanium dioxide industry; after the completion of the acquisition, the company will have the production capacity of titanium sponge for the first time, becoming a new profit growth point, and further improving the company’s titanium concentrate-titanium chloride slag-Chlorinated titanium dioxide-sponge titanium-titanium alloy industry chain. Xinli Titanium Industry has outstanding geographical resources advantages and outstanding synergy with the company.Xinli Titanium Industry is located in Lufeng County and Wuding County, Chuxiong Yi Autonomous Prefecture, Yunnan Province. It is a national hydropower energy base. The reduction of electricity price will greatly reduce the energy cost of high titanium slag and sponge titanium.Ports, import and export of appropriate raw materials and products, substitution can be in line with the company ‘s top 50 Panxi titanium concentrate upgrade and transformation of titanium chloride slag innovation project construction project in the company ‘s Panzhihua base, which can provide stable titaniumMineral resources will help the company to realize the localization of the titanium dioxide and high-end titanium alloy project raw materials and supply stability. The company’s chlorinated titanium dioxide project will soon be put into production, creating a layout of the entire titanium industrial chain.The company is currently the first in Asia and the third largest titanium dioxide producer in the world. The 20 / year chloride chloride titanium dioxide project (two 10-target / annual production lines) in Jiaozuo base will be put into production in 2019Q2 and 2019H2, respectively.In the next three years, the company will strive to achieve the production and sales of titanium dioxide 70, 85, 100 tons, of which chloride products reach 15, 25, 30 tons, and annual operating income of 120, 160, 20 billion US dollars.The company constructed 50 innovative Panxi titanium concentrate upgrade and conversion projects for titanium chloride slag in the upstream, and constructed a high-end titanium alloy new material project with an annual output of 3 to develop high-end titanium alloy materials.The company always adheres to the development goal of “doing deep manufacturing 杭州桑拿 of refined titanium products and making fine titanium derivatives”, continuously improving the company’s profitability and core competitiveness, and is committed to building an optimization and upgrade of the entire industry chain. Profit forecast and rating.We expect the company’s EPS for 2019-2021 to be 1.49 yuan, 2.01 yuan and 2.42 yuan, corresponding to 10 times, 7 times and 6 times the corresponding PE, maintaining the “buy” level. risk warning.The risk of a significant decline in the price of titanium dioxide, the risk that the construction progress of new projects is less than expected, and that the bidding progress and results are less than expected.