Bao Ti Shares: Titanium industry continues to increase orders for good companies
According to the research report of Everbright Securities, Baoti Titan Co., Ltd. pointed out that the main reason for the company's revenue growth and net profit growth in 2019 was that the orders in the aviation, aerospace and aerospace industries increased steadily, the orders in the civilian products market increased substantially, and the international market orders exceeded. The production and sales of titanium products increased. In the first half of 2019, the company's titanium product sales volume was 10,170 tons, up 69.3% year-on-year; the company's titanium product revenue was 1.56 billion yuan, up 49.7% year-on-year, and the gross profit margin increased by 1.36 percentage points from the same period last year to 22.14% to 23.48%. Benefiting from the rise in titanium prices, Baoti Huashen (manufactured by titanium tetrachloride and titanium metal), a subsidiary of the company in the first half of 2019, achieved revenue of 310 million yuan and net profit of 35 million yuan, a year-on-year increase of 40%. Based on the continued improvement of the titanium industry, the company's orders increased significantly, and the company's earnings forecast was raised. The EPS from 2019 to 2021 was 0.60 yuan, 0.87, and 1.19 yuan respectively. Maintain a “Buy” rating.