Hua Tailai (603659): The first quarter profit slightly increased, capacity expansion cycle is about to start

Hua Tailai (603659): The first quarter profit slightly increased, capacity expansion cycle is about to start

The profit in the first quarter is under pressure, and it is initially expected to improve the company’s revenue in the first quarter of 2019 10 quarterly.

29 ppm, an increase of 79 in ten years.

52%, net profit attributable to mother 1.

29 ppm, an increase of 0 in ten years.

51%, deducting non-net profit 1.

14 ‰, an increase of 9 in ten years.

78%, operating cash flow -1.

27 trillion, 1383 million in the same period, mainly due to the increase in raw material needle coke prices and the increase in carbonization processing costs caused by the increase in fast-charging products, 天津夜网 repeated material profit breaks through the pressure, and the comprehensive gross profit rate from 36.

55% returns 26.

51%. At the same time, in order to accelerate the expansion of production capacity, bank borrowing and financial leasing are used to form certain financial expenses.

The company’s total maximum material output is 3, and finally to the 5th hour, another convertible bond is issued to raise and put into operation 3, and the capacity expansion cycle is started to drive quarterly improvement.

Short-term materials: expanding production capacity and speeding up, entering the world’s leading short-term materials. Major customers include ATL, Samsung SDI, CATL, etc., sales in 20182.

In September, the annual growth rate was 24.

34%, net profit 4.

2 ‰, an increase of 8 in ten years.

35%, the production capacity will be increased from 3 to 8 replacements in the next 2 years, which will fully open the power battery market.

In the short term, due to the increase in the price of needle coke and the increase in graphitization processing fees, the gross profit rate in 2018 was 39.

22% dropped to 33.

90%, gradually increase the production of graphitization capacity, profitability will gradually stabilize and recover.

Replacement machine: Adjust the structure of customers to achieve an increase in sales of 199 lithium-ion equipment in 2018, a year-on-year decrease of 16.

39%, net profit is 0.

97 ppm, an increase of 27 in ten years.

16%, under the pressure of intensified competition in equipment, the company actively adjusted the customer structure and realized product upgrades, with a gross profit margin of 30 in 2018.

01% increased to 33.


Investment suggestion: The company is about to enter the period of performance harvest. Maintaining the capacity of the buy-rated company is about to enter the period of rapid release and bring about release of performance. Regardless of the impact of convertible bond raising projects, the company’s EPS is expected to be 1 in 2019-2021.

81, 2.

42 and 3.

12 yuan / share, corresponding to P / E ratios of 27X, 20X, and 16X. For the benchmark midstream lithium battery leader company, considering the high barriers of the company’s card swap, it will give a 2019 performance of 35X P / E ratio, a reasonable value of 63.

35 yuan / share, maintain BUY rating.

Risk reminder: The price of anode materials has fallen more than expected; the customer development has fallen short of expectations.