Dragon Python Bailey (002601): Take the lead in adjusting for the third time in the year, optimistic about the future growth of the leader

Dragon Python Bailey (002601): Take the lead in adjusting for the third time in the year, optimistic about the future growth of the leader
Event: On August 3, the company announced that the sales price of various types of titanium dioxide (including sulphate titanium dioxide and chlorination titanium dioxide) was increased by RMB 500 / ton for various domestic customers based on the original price, and increased for various international customers.$ 50 / ton. Titanium dioxide prices rose for the third time this year, and the peak season is about to boost market confidence.This price adjustment is the third time that the company has taken the lead in raising prices after February 13 and March 7. Due to this, China Nuclear Titanium Dioxide, Shandong Daun, Pangang Vanadium Titanium and other oxide companies have successively adjusted the price of titanium dioxide.The price increase range is around 500 yuan / ton, and the international customer price increase range is 50-100 dollars / ton.In the first half of 2019, the price of titanium dioxide was temporarily stable, and the price difference fell slightly. The average price of rutile titanium dioxide was about 16,500 yuan / ton, which was reduced by 5% per ton. The price of titanium dioxide-titanium concentrate-sulfuric acid was about 11,500 yuan / ton.Reduced by 4%.Since July, due to the low season of downstream demand, prices have fallen somewhat. The average price of titanium dioxide in July was about 15,700 yuan / ton.In the first half of this year, domestic titanium dioxide output was about 154 inches, an annual increase of 6%, and exports were 48.2 Initially, imports are reduced by 2% per year.5 inches, a reduction of 29% per year, mainly due to the obvious improvement in domestic titanium dioxide quality.The company is a leading company in titanium dioxide, and it will raise prices again during the peak season of titanium dioxide demand, which will help boost industry confidence. The company is a leading company in titanium dioxide, and the 20-year budget / year chlorination project of Jiaozuo Base is progressing smoothly.The company is currently the first in Asia and the third largest manufacturer of titanium dioxide in the world, and currently has a total annual production capacity of 54 sulfuric acid method and 6 annual chloride method.At present, the 20th / year Chlorination Titanium Dioxide Phase II project of Jiaozuo Base has been put into operation smoothly. The first 10-position / annual production line is in the joint test run. The device load and continuous stabilization time are steadily increasing. It is expected to reach production in September.The 10 starting points / annual production line will start the joint test run at the first line to reach the production port, and it is expected to reach the end of the year. Xinli Titanium has resumed production well, and the company is building a titanium industry chain layout.The company acquired 98% equity of Yunnan Xinli Titanium Industry in the first half of the year. The existing Xinli Titanium industry 1 / year sponge titanium and 6 / year chloride titanium dioxide are undergoing technological 杭州桑拿 transformation and production.At present, the progress of resumption production is well trained. Among them, the production capacity of titanium sponge is expected to resume operation in the third quarter, and the production capacity of chlorinated titanium dioxide is expected to be put into production before the end of the year.In addition, the subsidiary Longman Mining and Metallurgy invested 15.100 million US dollars to build the 50-inch highest Panxi titanium concentrate upgrade and transformation titanium chloride slag innovation project construction project, which can annually produce 30 tons of titanium chloride slag base material and 20 tons of high-quality iron. It is expected to achieve chlorinated titanium dioxide andLocalization of high-end titanium alloy project raw materials and stable supply; subsidiary Baililian New Material Investment19.$ 800 million to build a 3-inch high-end titanium alloy new material project 上海夜网论坛 to develop high-end titanium alloy materials.The company is committed to creating an accurate, full-process titanium chloride white industrial chain. The implementation of various projects is conducive to promoting the optimization and upgrading of the entire industrial chain of the company’s titanium concentrate—titanium chloride slag—chlorinated titanium dioxide—sponge titanium—titanium alloy., Enhance the company’s profitability and core competitiveness, and promote the company’s sustainable development. Earnings forecasts and investment advice.As the titanium dioxide market price drops, we lower the company’s EPS to 1 in 2019-2021.39 yuan, 1.79 yuan and 2.26 yuan, corresponding to 10 times, 8 times and 6 times the corresponding PE, maintaining the “buy” level. Risk reminder: the risk of a substantial decline in the price of titanium dioxide, and the risk that the construction progress of new projects is less than expected.