Cangzhou Pearl: Capacity release cost controllable

17th, Cangzhou Pearl (002108) stock prices all the way down, and finally to 12.59 yuan to stop. Analysts believe that the main reason for the fall in the company's share price is systemic risk and concerns about rising costs.　　The company said that due to rising costs, gross margin will be reduced, but strong downstream demand, production capacity will thicken the company's performance this year. The rising cost can control the main products of Cangzhou pearl plastic pipe materials, plastic film, the main production materials are polyethylene, PA6. With the rise of oil prices, the company's production costs have increased.　　Pacific Securities researcher Yiu Xin said the average oil price this year will be higher than last year, which will affect the company's gross margin. To this, Cangzhou Pearl related Personage said, the company produces the raw material price is rising, but does not have the crude oil price fluctuation so big, still is within the controllable scope. And the company can through the price increase downstream transmission part of the production costs. At present, the company production and operation of normal, downstream demand exuberant, production line at full load state. Company downstream manufacturers include gas operators, water companies, telecommunications operators and so on.　　The company has a certain bargaining power. Yiu Xin said that in addition to rising costs, Cangzhou pearl share price fell more mainly because of the early rise in the range too large.　　In fact, the entire chemical sector of the small plate stocks in the recent correction is very serious.　　Capacity exceeded last year according to the company's judgment, although this year's gross margin has declined, but due to the release of production capacity, and downstream demand, high operating rate, this year will still have a good performance. In the first quarter of this year, the company to achieve ownership of the listed company's shareholders net profit of 18.47 million yuan, an increase of 79.77%. The company expects the first half of its net profit, which is attributable to its parent owner, to grow by less than 30% per cent.　　The company said the base was relatively large last year, so growth slowed. It is understood that last year's Texas project to contribute to the company's performance of only half a production line, and this year to contribute to the company's performance of two lines.　　Last year, the company acquired its own capital of Dezhou Dong Li Plastic Co., Ltd. all assets, the company has two Bopa film production line. The company announced April 7 that the company's Non-public offerings raise capital investment "annual output of 45 million tons of new high barrier packaging film (BOPA) project" was completed and put into operation before April 30. The project has achieved a successful feeding, into the trial production phase. Capacity could be effectively released in the second half of the year.　　April 24 announced that Wuhu Pearl investment in the construction of the annual output of 15000 tons of polyethylene (PE) gas, water supply pipe project has been completed, the beginning of formal production. Analysts believe that Bopa is the biggest aspect of the company, the product long-term bullish. Data show that the Bopa film is one of the fastest-growing plastic packaging materials in the world in recent years, and is becoming the third largest variety in the tensile film after Bopp and boPET film. Bopa film is widely used in food, medical, cosmetics and mechanical electronic products such as packaging, especially for refrigerated packaging, vacuum packaging and cooking packaging.