Overview of fused magnesia market in the near future

According to the news report of fused magnesia industry, fused magnesia (MgO ≥ 98%) was reported at 9330-9430 yuan/ton on the 14th, up 3.32% from the previous day. The price of fused magnesia has risen for four consecutive days, with a cumulative increase of 44.4%, up 371% this year. The organization believes that the core logic behind this round of magnesite price increase of fused magnesia is that the Liaoning Provincial Government has improved the strategic position of the magnesium industry. Even if the magnesite mining is open in the future, the total amount will be significantly controlled. The profitability of downstream steel, cement and glass industries was improved.

The demand of fused magnesia for refractory materials is increasing, and the profitability of leading enterprises is far higher than that of the industry. We can pay attention to the financial forecast and valuation of Pu'nai and Beijing Lear: we predict that the company's revenue in 2017-2019 will be 2.658, 3.049 and 3.415 billion yuan, the net profit attributable to the parent company will be 191, 250 and 346 million yuan, respectively, and the EPS will be 0.21, 0.28 and 0.39 yuan. The PE corresponding to fused magnesia will be 33X, 25X and 18X respectively, which is the first time covered, and the company will be given the "increase" rating, which is more than half of August, The overall turnover of the fused magnesia market is low, and the slow return of funds and other problems are increasingly obvious. All kinds of signs show that most enterprises are in a deep and hot situation, which makes people sigh.