Hangyang shares (002430): profit, record high cash flow continue to expand gas layout

Hangyang shares (002430): profit, record high cash flow continue to expand gas layout

Hangzhou Oxygen Co., Ltd. released its 18-year annual report and realized revenue of $ 7.9 billion, which will increase by 22 in the future.

5%, to achieve net profit attributable to shareholders of listed companies.

US $ 4.1 billion, an annual increase of 105%, net of non-attributable net profits of listed companies.

3.0 billion, an annual increase of 133.


Net cash flow from initial operations 12.

Eight ten percent, an increase of 48 per year.


Thanks to the recovery of air separation equipment order income and the continuous expansion of the industrial gas business, Hangyang’s 18-year revenue, net profit, operating cash flow and other indicators have reached record highs, giving them deep recommendations.

Gas revenue has steadily increased, and air separation equipment orders have reached a peak of confirmation.

Revenue from gas sales in 18 years44.

60,000 yuan, an annual increase of 14.

1%, through the continuous expansion of the gas subsidiary’s layout, gas business revenue has steadily increased; air separation equipment revenue29.

800 million, an annual increase of 41.

8%, mainly benefited from the air separation brought by the recovery of downstream metallurgical, chemical and other industries since 16 years, and petrochemical equipment orders increased.

Hangzhou Oxygen ‘s 17-year long-term equipment order was 3.5 billion, driving the growth of equipment revenue for 18 years. The company gradually completed three sets of 100,000 air separation units for Shenhua Yulin, 2 sets of 90,000 air separation units for Xinjiang Tianye, and 4 sets of 80,000 air separation units.Order execution for key projects.

In terms of new orders, Hangyang successfully won the bid for Datang Fuxin and Keqi, two of the largest and most iconic CO cryogenic separation unit contracts in China, and satellite petrochemical replacement dehydrogenation ethylene cryogenic separation unit contract in 18 years.

At the same time, following 4 sets of 80,000 air separation projects in the first phase, it successfully won 4 bids for 10 sets of Zhejiang Petrochemical.

50,000 air separation equipment contracts, new equipment orders in 18 reached 45.

5 megabytes, laying the foundation for continued growth in air separation equipment revenue in 2019.

Gross profit margin 23.

3%, continue to improve.

The company’s gross profit margin for the year 2018 was 23.

3%, up 2 by 2017.

1pct, gross profit margin continued to improve.

The gross profit margin of air separation equipment is 24.

9%, a decrease of 1 from 17 years.

1pc, gross profit margin of industrial gas business 23.

5%, an increase of 2 over the previous 17 years.

8 points.

The increase in industrial gas gross profit margin, in addition to the strong demand in the gas retail market, is also due to the benefits brought about by the expansion of the gas business scale and improved profitability.

In 18 years, the company invested in the construction of the second phase of Shanxi Hangyang Phase 6.

50,000 air separation, Pingsteel Hangzhou Oxygen Phase 2 will build 20,000 air separation project and Henan Hangyang Phase 3 will build a new 30,000 air separation project.

At the same time, it invested in the establishment of Luzhou Hangyang Logistics to create conditions for retail gas business.

In the future, the company will continue to focus on increasing the industrial gas revenue scale and 北京夜生活 strategic transformation from a production-oriented enterprise to a production-oriented service enterprise.

Operating cash flow 12.

800 million, a record high.

In 18 years, Hangzhou Oxygen realized net operating cash flow.800 million, of which only 4 quarter net cash flow in the fourth quarter5.

2 ppm, the stability brought by the gas business, and the effect of enriching the gold flow is very obvious.

The gas business has perfectly smoothed the cash flow fluctuations of the equipment business. Since 2015, the net cash flow of Hangzhou Oxygen has been above 400 million US dollars each year, which is higher than the net profit level.

Through the further expansion of the gas scale in the future, it is expected that the cash flow will also continue to develop healthily.

In 2019, the company will continue to accelerate the investment layout of the gas industry.

At present, in the downstream distribution of the company’s pipeline gas, steel accounts for the highest proportion, about 60%, and traditional chemical coal chemical industry, etc., about 40%. In the future, the company will strengthen its new products and new applications in rare gas, energy gas, electronic gas and chemical gas.expand.

Although the acquisition of Baosteel Gas due to price reasons, the company is still actively exploring the path of outsourcing M & A outside of its endogenous development.

Performance forecast and investment advice.

We predict that the gradual increase in the scale of air separation orders confirmation and the continuous increase in the scale of gas distribution will continue to increase the revenue of Hangzhou Oxygen in 2019. It is estimated that the annual revenue will be USD 9.6 billion, which will be attributed to its net profit8.

900 million yuan, corresponding to 13 times the PE.

We are optimistic that the company will become a leading industrial gas company in China. Although the performance may change in the short term due to industrial prosperity, retail gas price changes and other reasons, there is huge room for long-term growth.

Risk warning: Industrial retail gas prices, demand declines, and the extension expansion progress is less than expected.