Dragon Python Bailey (002601): Global Titanium Dioxide See China China Watch Dragon Python Bailey
This report reads: The growth of overseas titanium dioxide supply has stagnated, domestic sulfuric acid production capacity has shifted, and global titanium dioxide supplementary supply depends on China’s chlorination method. Many domestic companies have replaced effective breakthrough chlorination technology, and the company’s chlorination method is far ahead of domestic counterparts. Investment points: first coverage, overweight rating: The company is the largest in Asia, second only to Chemours in the world, Tenor’s third largest titanium dioxide production company, and one of the few domestic companies that effectively breaks through the chlorination technology. We expectCompany EPS1 for 2019-21.39/1.58/1.93 yuan, with reference to comparable companies to give the company 15 times PE for 20 years, corresponding 佛山桑拿网 to a target price of 23.70 yuan, the first coverage given an overweight rating. The global supply of titanium dioxide looks at China’s chlorination method, and China’s chlorination method at Longman Baili.Overseas titanium dioxide production capacity, production growth stagnation; domestic sulfuric acid law restricts the increase of production capacity and accelerate the elimination of small and medium-sized production capacity; domestic policy supported chlorinated titanium dioxide has become the only incremental source in the world.The company is one of the few domestic companies that effectively breaks through the chlorination process technology. It is far ahead of its domestic counterparts in operational stability, single-line scale, and investment costs. The key to the expansion of the domestic chlorination process is Long Man Baili.In addition, the company builds localization of high-titanium slag raw materials, improves the industrial chain and enhances cost advantages. Supply and demand resonate, and the price of the sulfuric acid method has a long upward trend.Although the sulfuric acid method has disadvantages in areas such as environmental protection and product quality, the raw material requirements of the titanium dioxide of the sulfuric acid method are low, and the investment cost is low. The production cost is at least 4,000 yuan / ton lower than that of the chloride method;The chase target domestic sulfuric acid method uses more than 85%; sulfuric acid method production capacity, production is difficult to increase, supply and demand resonance, the price of sulfuric acid method has a long upward trend. The company’s sulfuric acid method titanium dioxide has a significant cost advantage and its profit is much higher than its peers.The company is a long-distance counterpart of the sulfuric acid method in the industrial chain, scale effect, circular economy and other fields. The production cost of the sulfuric acid method is at least 1500-3,000 yuan / ton lower than the domestic listed counterparts, and the profit is 2000-4000 yuan / ton higher.In the future, global titanium concentrates will be tight, which will further enhance the company’s cost advantage.