Yongxing Materials (002756): Performance is slightly higher than expected lithium battery expected contribution performance increase

Yongxing Materials (002756): Performance is slightly higher than expected lithium battery expected contribution performance increase

This report reads: The company ‘s performance in the first three quarters of 2019 was slightly lower than expected, and the benefit from asset disposal contributed to the company’s performance.

The company’s lithium battery project has been put into production, and through its gradual release of battery-level lithium carbonate, the company’s performance may rise steadily.

Investment Highlights: Maintain “Overweight” rating.

The company achieved revenue of 36 in the first three quarters of 2019.

9.7 billion, up 1 year.

69%; net profit attributable to mother 3.

6.1 billion, up 9 previously.

39%.

The company achieved revenue of 12 in the third quarter.

1.6 billion, net profit attributable to mother 0.

96 trillion, down 9 a year.

37%, the company’s performance was slightly lower than expected.

Considering that the company’s lithium battery project is expected to contribute to the performance increase, the company’s EPS for 2019-2021 is maintained at 1.

44/1.

66/1.

80 yuan, maintaining the company’s target price of 18.

72 yuan, “overweight” grade.

Asset disposal income contributed to the performance, and the company’s net sales margin continued to rise.

In the first three quarters of 2019, the company’s gross sales margin and net profit margin were 12 respectively.

94%, 9.

76%, one year each in 2018Q3.

96, up by 0.

71 units.

Benefit from demolition compensation compensation and transfer of forging workshop, the company realized zero asset 苏州夜网论坛 disposal income.

980,000 yuan, making a great contribution to the company’s performance.

In the first three quarters of 2019, the company’s ROE was 10.

54%, it is expected that the company’s ROE in 2019 will reach the best level in company history.

Asset-liability ratio remained low and financial expenses continued to decline.

In the first three quarters of 2019, the company’s asset and debt restructuring24.

77% still maintain blood glucose levels.

Expenses for the first three quarters of the company6.

01%, a year-on-year decrease of 0%.

15 units.

The company’s financial expenses in the first three quarters decreased by 8.16 million to -1.78 million from the third quarter of 2018. The company has sufficient funds and its financial expenses have continued to decline.

The high prosperity of oil and gas investment overlaps with the performance of lithium power projects, and the company’s performance may rise steadily.

As of September 2019, the monthly growth rate of investment in fixed assets for oil and gas extraction was 38.

8%, we expect oil and gas investment to maintain a high growth rate in 2019, the company’s downstream demand for products to replace.

The company’s lithium carbonate project is currently in production. With the release of incremental demand for new energy vehicles, the price of lithium carbonate is still not pessimistic.With the company’s gradual release of battery-grade lithium carbonate, the company’s performance may rise steadily.

Risk warning: the macro economy accelerates the downlink; the output of lithium carbonate projects exceeds expectations.