Jiuli Special Material (002318) hits record profits, will benefit from high oil and gas boom and nuclear power restart

Jiuli Special Material (002318) hits record profits, will benefit from high oil and gas boom and nuclear power restart

Core views: 1. 2018 performance: revenue and net profit both hit record highs. 天津夜网 Management expenses increased due to the loss of employee shareholding plans. In 2018, Jiuli Special Material achieved operating income of 40.

70 ppm, an increase of 43 in ten years.

66%; Net profit attributable to owners of the parent company.

40,000 yuan, an increase of 126 in ten years.

89%; basic profit income is 0.

36 yuan, an annual increase of 125.

00%; Estimated increase in average net asset income by 10.

09%, an increase of 5 a year.


In 2018, the company’s operating income and net profit attributable to the mother both set a trend since the company went public in 2009.

In 2018, the company plans to distribute a cash dividend of 3 yuan (including tax) to every 10 shares of all shareholders, and the total cash dividend will reach 2.

US $ 5.2 billion, accounting for 82% of the net profit attributable to the parent company for the year.


The company’s total period expenses in 2018 amounted to 6.

4.6 billion, with an annual increase of 48.

85%, of which management cost is the main contribution item, reaching 4.

00 ppm, a 63-year increase.


The company’s employee shareholding plan share payment transaction amount is 0.

97 million is included in the current profit and loss is the first increase in management expenses.

Second, the plan and the company’s point of view in 2019: It is expected that the sales of finished stainless steel pipes will increase by 4%. Oil and gas pipes will benefit from the rebound in oil and gas capital expenditures. Nuclear power pipes will benefit from domestic nuclear power investment.

97 Initially, the actual sales volume increased by 4 in 2018.


Looking at historical data, 2016?
In 2018, the company’s planned completion rate is increasing year by year, of which over 100% in 2018.

The company’s oil and gas pipeline is expected to continue to benefit from the high level of oil and gas exploration, and nuclear power pipes may benefit from the restart of domestic nuclear power investment and the localization of nuclear power equipment.

III. Investment suggestion: Benefiting from the high prosperity of oil and gas development, nuclear power investment restarts, and profit will grow steadily. Maintaining a “Buy” rating is expected to have an EPS of 0 in 2019-2021.



52 yuan, corresponding to the closing price on March 19, 2019, the PE for 2019-2021 is 17.



53 times, PB is 2.



62 times.

In 2017?In the upward cycle of the oil and gas boom in 2018, the company’s PB_LF estimated center is at 2.

About 28 times.

We believe that the domestic oil and gas industry will continue to maintain a high degree of prosperity in 2019, and the company’s profitability will further increase. Its PB estimates should be repaired to the vicinity of the transformation center in the past two years, which is 2.
About 28 times.

Take the company’s clean net assets in 20194.

Calculated at 26 yuan, the company’s reasonable value should be at 9.

80 yuan / share.

As of March 19, 2019, the company was merged into 8.

55 yuan, maintain “Buy” rating.

4. Risk warning: Macroeconomic downturn; raw material prices exceed expected growth and erosion rates; major changes in oil and gas, nuclear power boom or policies