Hua Tailai (603659) 2019H1 performance review: continuous repeated heavy volume gross profit rate to promote stabilization

Hua Tailai (603659) 2019H1 performance review: continuous repeated heavy volume gross profit rate to promote stabilization

The company’s 2019 Interim Report was released, and its performance was in line with expectations: the company achieved operating income of 21 in the first half of 2019.

77 ppm, an increase of 58% per year, achieving net profit attributable to the parent company2.

64 ppm, a ten-year increase2.

6%, the net profit of non-attributed mothers 2 was realized.

4 ‰, an increase of 8 in ten years.

5%, in line with expectations.

Long-term heavy volume once a month, revenue growth rate is obvious:

A growth rate of 70% per year.

Market share is about 23%; company implants replace implants2.

400 million square meters, an increase of 849% in ten years, the market share is about 28.

54%, revenue growth is obvious.

The supply of materials and equipment are all available, and the synergy effect is more obvious: The company’s supplementary materials are positioned at the high end and the product performance is excellent.
At the same time, the production capacity of embedded polycarbonate was released quickly, with significant growth in revenue generation and significant cost reduction. The main supplier was CATL.

In addition, some of the new Jiatuo equipment entered Panasonic and Tesla’s supply system, supplying products to mainstream international battery manufacturers and car companies.

By providing comprehensive solutions for materials and process equipment, the company leverages synergies to achieve global supply.

The three fee control is reasonable, and the gross profit margin is expected to stabilize and rise: the total expense ratio during the period is 13.

2%, 0 per year.

4pct; gross profit margin was 27%, exceeding the decline of 8.

At 6pct, the gross profit margin contracted, mainly due to the increase in the gross profit margin relative to the short-term material revenue category of the alternative power category. At the same time, the company’s interruption and graphitization capacity were completely released. The price of raw materials remained high, 杭州桑拿网 resulting in relatively high costs.

With the release of related capacity in the second half of the year, gross profit margin is expected to stabilize and recover.

Investment suggestion: We have adjusted our profit forecast and expect the company to return to its net profit in the period of 19-20.

6,9.

6, 11.

900 million, corresponding to the latest expected (August 27) PE value of 29, 23, 18 times, correspondingly prudently increase the rating.

Risk reminder: the risk of new energy vehicle production and sales falling short of expectations, the risk of new energy vehicle policies falling short of expectations, the risk of falling prices of the industrial chain exceeding expectations, etc.