Guanghua Technology (002741): Slump in the industry drags down performance New energy layout is worth looking forward to

Event: The company ‘s self-raised capital of 50 million yuan added value to its wholly-owned subsidiary Zhuhai Zhongli New Energy, which will increase and strengthen Zhongli New Energy ‘s financial strength and operating capacity, which will be beneficial to the cascade utilization, recycling, disassembly andExpansion of business such as remanufacturing.

Comment: The downturn in the industry has caused the company’s performance to increase significantly.

The company’s traditional business is PCB chemicals, and the prices of metals such as cobalt have continued to decline, which has caused the company’s revenue and profits to decline.

The company’s new energy business is in a climbing phase, but this year, as the new energy automobile industry is also at a low point, the continuous material price continues to fall, which will hinder the company’s new business expansion.

The decline in gross profit margin is due to both industry environmental reasons and income structure reasons such as the spodumene mine project division report and the low gross profit margin of the new energy business during the climbing period.

The trend of capacity transfer remains unchanged, and the market share of PCB 深圳桑拿网 chemicals business has increased.

With the continuous advancement of capacity transfer in the PCB industry, domestic substitution has become a trend, and the long-term boost of the prosperity of the domestic PCB industry.

At the same time, environmental protection supervision is gradually rigorous and gradually promotes the concentration of domestic industries.

As a domestic leader in PCB chemicals, the company’s market share increased by 4% in 2017, and the market share will gradually increase in the future.

With the continuous growth of new production capacity, the company’s PCB chemicals business is expected to continue to grow.

The rise of new energy vehicles is the general trend, and the power battery production and recycling business is about to blow out.

From January to November 2019, the production and sales of new energy vehicles were respectively 109.

30,000 and 104.

30,000 vehicles, an increase of 3 per year.

6% and 1.

3%, is expected to pick up in 2020 and maintain higher growth, the future power battery installation into an explosive period.

At the same time, following the 3-5 year life cycle calculation of power batteries, starting in 2018, the recovery of power batteries has entered a rapid lifting phase, and step utilization and ternary dismantling will be promising.

The company builds a lithium-ion recycling industry chain and starts a new chapter in growth.

The company’s advantage lies in long-term accumulation of chemical processes such as purification, and industrial extension based on a longer period.

The company breaks through innovative technologies and mature raw material supply channels to form a synergy effect, thereby quickly breaking through raw material barriers and effectively reducing costs.

At the same time, as one of the first five power battery recycling companies of the Ministry of Industry and Information Technology, the company currently has a mature battery recycling demonstration line with a capacity of 1,000 tons per month in Shantou. The long-term plan for 20 replacement projects will also be gradually put into operation.

At the same time, the company established a recycling cooperation relationship with large new energy vehicle companies, and jointly explored the use of storage batteries with China Tower. The boots opened up the large-cycle industrial chain of “battery disassembly and recycling-resource regeneration-multiple materials” and quickly occupied the commanding heights of the industry.

Investment and rating.

We are optimistic about the company’s layout in the field of new energy, but based on industry reasons, we will reduce the company’s revenue for 2019-2021 to 18.

7.7 billion, 25.

5.8 billion and 31.

06 million yuan, the net profit is 0.

7.5 billion 1.

60 billion and 2.

42 trillion, EPS is 0.

20, 0.

43 and 0.

65 yuan, the corresponding PE is 62.

1, 29.

1 and 19.

3 times, maintaining the level of “Careful Recommendation-A”.

Risk reminder: The project is put into production less than expected, and the market for power battery initial materials is fiercely competitive.