Shenzhen Xinxing (603978) semi-annual report comment: single-quarter results of potassium tetrafluoroaluminate volume

Shenzhen Xinxing (603978) semi-annual report comment: single-quarter results of potassium tetrafluoroaluminate volume

The company released the semi-annual report for 2019, the number of reports, and the company realized revenue5.

22 trillion, with an increase of 7.

11%; net profit attributable to mother 0.

5.8 billion, an increase of 7.

30%; net profit after deduction is 0.

52 trillion, with an increase of 28.


In Q2 quarter, revenue was 2.

8.8 billion, an increase of 3.

92%; net profit attributable to mother 0.

42 trillion, with an increase of 105.

38%; net profit after deduction is 0.

400,000 yuan, an increase of 120 in ten years.


The volume of potassium tetrafluoroaluminate was doubled, and the single quarter performance doubled.

17 Initially, it was flat for one year; however, potassium fluoroaluminate sales were zero.

88 cobalt, with an increase of 149.

56%, fluorite powder sales 0.

99 cobalt, the same increase of 51.

74%, profit increase mainly from potassium fluoroaluminate and fluorite powder.

In the company’s Q1 quarter, the net profit after deducting non-attribution was only 0.

1.3 billion, and Q2 quarter deducted non-attribution net profit increased to zero.

4 billion, an increase of 120.

74%, an increase of 207.

69%, single quarter net profit, gross margin replaced historical highs since 2015.

In the first half of the year, the company’s sales of refiners remained flat, and in the second quarter, potassium tetrafluoroaluminate began to be sold to electrolytic aluminum enterprises, resulting in a significant increase in the overall sales of potassium fluoroaluminate1.

5 times, potassium tetrafluoroaluminate may become the company’s first quarter to double the single-quarter performance.

The company and the electrolytic aluminum industry achieve a win-win situation. Potassium tetrafluoroaluminate promotes accelerated development. The potassium tetrafluoroaluminate developed by the company promotes the partial replacement of aluminum fluoride (electrolytic aluminum additive).

In the production of electrolytic aluminum, 20 kg / ton of aluminum fluoride is generally added. Now 10 kg / ton of aluminum fluoride + 10 kg / ton of potassium fluoroaluminate is mixed, which can be used without increasing costs (the price is equivalent to aluminum fluoride)), Save 500 degrees of electricity, according to 0 degrees of electricity.

Calculated at 31 yuan / degree, it can increase the profit for electrolytic aluminum enterprises by 155 yuan / ton.

For electrolytic aluminum enterprises, the use of potassium tetrafluoroaluminate to increase profits is considerable, so potassium tetrafluoroaluminate achieves a win-win situation between the company and the electrolytic aluminum industry, and its application in the electrolytic aluminum industry promotes accelerated promotion.

The growth space opens, and the company will usher in a new flyby. Following the initialization of China’s 3649 in 2018, the global output of 6434 injected electrolytic aluminum is assumed. Adding 10 kg / ton injection per ton of electrolytic aluminum, the market space will reach 36 in China.

5 announcements, 64 worldwide.

3 initial.

Judging from the current sales of potassium fluoroaluminate products, the promotion effect is remarkable. As a company with various barriers such as raw materials, equipment, and patents, the company will take advantage of the development of the industry and usher in a new leap forward.

Profit forecast and rating: As the leader in the aluminum particle refiner industry, the company’s continuous expansion of product scale and the accelerated promotion of by-product potassium tetrafluoroaluminate, the net profit is expected to be 2 in 2019-2021.


50/4.470,000 yuan, the EPS is 1.



80 yuan / share, corresponding to the closing price of PE on August 27, 2019 was 27/16 / 12X, maintaining the “overweight” level.

Risk reminder: the company’s product capacity release is less than expected risk, the new product potassium tetrafluoroaluminate is not progressing as expected, the 杭州夜网 risk of rising raw material prices, and the investment project is not performing as expected