Events: 1. The company's 2018 operating income was 1.183 billion yuan, an increase of 98.13% over the same period last year; net profit was 151 million yuan, an increase of 39.31% over the same period last year; of which Baili Lithium's operating income was 308 million yuan, an increase of 182.46% over the same period last year; net profit was 40 million yuan, an increase of 77.74% over the same period last year; the company's comprehensive gross profit margin was 31.65%.
2. The company (45% equity) plans to establish Bailikun Ai hydrogen membrane material Co., Ltd., together with Kun Ai Xin material and Xiao Lixiang, to focus on R & D and production of high temperature proton exchange membrane materials. Kun Ai-Baili membrane electrode Test Laboratory (Asia) was set up in accordance with the standards of BASF laboratory.
Comments:
The performance is in line with expectations, and the lithium business drives the company's healthy and rapid growth. The company's net profit of 151 million yuan was near the median forecast, in line with market expectations. The company's comprehensive gross profit margin was 31.65%, down 7.18 percentage points, which was due to structural changes in the business caused by the increase in the proportion of total package income. The cash flow situation of the company has improved significantly, with 146 million in advance during the reporting period, an increase of 71.52% over the same period last year, and a net operating cash flow of 335 million, which is more than twice the net profit at the same time. Baili Lithium achieved revenue of 308 million, a growth rate of 182.46%, and net profit of 40 million, a growth rate of 77.74%. With the execution of the order, the company will enter a stage of rapid growth.
The trend of high nickel is obvious, and the professional EPC contractor has a bright future. The trend of high nickel is obvious, and the 811 line is downwards compatible, which will force the industry to build new capacity in accordance with high nickel standards. According to statistics, the planned production capacity of 811 in China has reached more than 400000 tons, and the estimated space can reach 28 billion yuan according to the investment of 700 million yuan / 10,000 tons. At the same time, 811 technical barriers are extremely high, and it is particularly difficult for enterprises to build their own production lines, and third-party solution providers will have a bright future.
The company has obvious advantages, full of orders, and is expected to rise rapidly in the future under the trend of high nickel. Nanda Zijin ploughs deeply in the field of full-production line of lithium materials, and its customers are Dangsheng, Palmer, Shanshan, etc. If it successfully acquires Hantaike, it will bring the coordination of technology and customers (Umico, Samsung, LG). It is expected that the company's current lithium orders are more than 3.5 billion yuan, which will bring greater performance flexibility in the future.
Enter the field of hydrogen fuel cell, the new energy map is the next city! At present, the mainstream route of hydrogen fuel cell is proton exchange membrane fuel cell, and proton exchange membrane is the core material, which is extremely difficult in technology. Kun'ai new material has successfully developed a new generation of high temperature fuel cell proton exchange membrane (HTPEM) with ultra-high molecular weight and high performance phosphoric acid doped polybenzimidazole (PBI) as the core, which is expected to fill the domestic technology gap. The company and Kun Ai new materials in-depth cooperation, is expected to take the lead in occupying the commanding heights of hydrogen fuel cell industrialization, the prospect is worth looking forward to!
Maintain the "highly recommended-A" rating! We estimate that the company's net profit in 19-21 is 300 million yuan, 439 million yuan and 546 million yuan, and the EPS is 0.96,1.40 and 1.74 yuan, respectively. The current stock price of 24.20 yuan corresponds to 25.3,17.3 and 13.9 times of PE in 19-21 years, maintaining the "highly recommended-A" rating.
Risk hint. The promotion of high-nickel is not up to expectations, and the competition in the industry is intensified.