Dragon Python Baili (002601): Price rises again after 22 days, titanium dioxide faucet embraces high boom cycle

Dragon Python Baili (002601): Price rises again after 22 days, titanium dioxide faucet embraces high boom cycle
Event: Only 22 days after the company raised the amount of titanium dioxide on February 13, the company announced again on March 7. From now on, the sales price of various types of titanium dioxide (including sulfate titanium dioxide and chloride titanium dioxide) is at the original price.On the basis, it is increased by RMB 500 / ton for domestic classified customers and USD 100 / ton for international classified customers. Leads in the titanium dioxide industry have gradually increased and stabilized.After the company acquired Longman Titanium in 2016, it has 54 sulfuric acid method production capacity and 6 chlorination method production capacity conversion, totaling 60 tons / year of titanium dioxide production capacity, ranking first in Asia, fourth in the world, and the only one in the country that has bothIndustry listed companies with sulfuric acid and chlorination capacity. The moat that runs through the entire industrial chain has significant competitive advantages.The company has resources upstream (the Longman Titanium and Ruierxin are successively acquired), the middle reaches 重庆耍耍网 have chlorination technology (the first phase is 6 tons / year with stable operation, and the second phase is 20 tons / year is about to be trial-produced), and the downstream has market and pricing rights(Exports account for over 50%, leading the industry to increase prices after the Spring Festival). The industry leader is configured to transition the moat of the entire industrial chain, and has a significant competitive advantage. The introduction of new production capacity of the chloride method helped the company to go global.Against the background of the global supply-side contraction and optimistic export performance, the company’s second phase 20-per-year capacity production plan for the chloride method will be trial-produced in the second quarter. Under the blessing of technology and experience accumulation in the first phase, it is expected that the successful commissioning will be highly deterministic.Will lead the mainstream development direction of China’s titanium dioxide, and help the company’s performance to a higher level. Continued high dividend returns to shareholders.Since the company went public in 2011, it has implemented cash dividends 10 times, with an average dividend rate of 82.3%.6 for every 10 shares in the first half of 2018.5 yuan, the dividend rate is 67%, and the dividend rate is 4.94%, continued high dividend returns to shareholders. Maintain “Buy” rating.It is expected that the company’s net profit attributable to its parent from 2019 to 2020 will be 35.57/41.610,000 yuan, corresponding to EPS 1.75/2.05 yuan, 9/8 times PE, maintain “Buy” rating. Risk reminder: the risk of falling titanium dioxide prices, the risk of new production capacity is less than expected.