Elion Clean Energy (600277): Chemical and Clean Energy Two-Wheel Drive Seeks Steady Development

This report reads: The company actively develops Jeneng environmental protection industry on the basis of traditional chemical industry. The chemical business is expected to pick up, and it will deliver clean heat and ecological photovoltaic in the future, and its profitability may continue to increase.

Covered for the first time, giving a “cautious increase” rating.

Investment Highlights: Cover for the first time and give a “cautious overweight” rating.

The company achieves two-wheel drive of chemical and clean energy. It is expected 深圳桑拿网 that the company’s EPS will be 0 in 2019-2021.

43, 0.

37, 0.

42 yuan.

Comprehensive PE and PB estimates give a target price of 5.

00 yuan, the first coverage, given a “cautious increase” rating.

Chlor-alkali business is down, and the company has significant integration advantages.

Since 2018, the prosperity of the chlor-alkali industry has declined.

In view of the close relationship between terminal demand and the area of completed real estate, we expect that the area of completed land may pick up in the second half of the year, which will lead to a short-term upward trend in alumina demand.

In addition, by improving the in-situ digestibility of liquid chlorine, the imbalance of chlor-alkali is expected to be eased, and the chlor-alkali industry will benefit.

Taking coal as the starting point, the company builds a chlor-alkali industry chain with PVC as its core, “coal-gangue power generation-calcium carbide-ion membrane caustic soda, PVC”.

At present, the company has a capacity of 50 mm of PVC and 40 mm of caustic soda, and the company has main raw materials and fuel sources. The self-sufficiency rate of calcium carbide is 100%, and the integration advantage is obvious.

Short-term pressure on diabetes persists.

Global production capacity has increased rapidly in the past few thousands of dollars. Among them, the increase in output reached 1051 in 2018, a growth rate of 26%, while the growth rate of demand-side polyester production capacity remained below 10%, resulting in an oversupply of carbohydrates and a marked decline of 44% from its high point.To the present 4600 yuan / ton.

The industry is expected to remain under pressure as there will still be approximately 900 additional global production capacities in the next few years.

The company has CFC 70 / year, which is currently the largest single coal-based sulfate production unit in China.

With certain cost and scale advantages, the company’s combined business is expected to cross bulls and bears.

The clean energy business is advancing steadily.

In the context of the accelerated progress of “removing cities and entering parks”, the company put into operation new construction projects, increasing the steam load and operating capacity of local operating projects.

In addition, in terms of bio-photovoltaics, the company’s proposed Kubuqi 1GW ecological photovoltaic project has been connected to the grid to generate 510 MW.

Risk warning: risk of sluggish demand, risk of relaxation of environmental protection policies.