The annual report performance growth is in line with expectations and cash flow has improved significantly.
The company achieved an annual income of 1.183 billion (+ 98.13%), a net profit of 150 million, a year-on-year increase of 38.29%, a non-return net profit of 136 million, a year-on-year increase of 30.77%, a gross profit margin of 31.65%, a decrease of 7.18pct over the same period last year, a net cash flow of 335 million of operating activities, and a year-on-year increase in weighted average ROE14.55%, of 2.63%. The company's performance was in line with expectations, and the increase in ROE was mainly due to a rapid increase in the number of asset turnover (from 0.29 to 0.48) and a slight increase in the equity multiplier (from 2.22 to 2.39).
The growth ability of lithium power business has become the core growth point of the company.
The current lithium / petrochemical business of the company is 5.61 yuan and 618 million yuan respectively. The lithium business mainly comes from the whole line / equipment / design orders from Hongma, Bamo and major domestic cathode manufacturers. The company's current orders-on-hand are close to 4 billion, strongly supporting the high growth in 2019.
The decline of the company's gross profit margin is mainly affected by the business structure, and the expense rate is well controlled.
The company's gross profit margin is 31.65% (- 7.18pct), mainly due to the decline in the proportion of engineering design business with medium and high gross margins in the current period. The expense rate is 12.88% (- 2.19pct). Company sales / management. The financial expense rates are 1.03% (+ 0.07pct), 8.75% (- 0.79pct) and 3.10% (- 1.47pct), respectively. The main reason for the significant decline in financial rates is the repayment of more loans in the current period.
Set up a joint venture to enter the field of high-temperature proton exchange membrane, committed to creating a fuel cell "Chinese core".
Company announcement: with Kun Ai Xincai and natural person Xiao Lixiang to establish a joint venture Bailikun hydrogen energy membrane material, the equity ratio is 45%, 35%, 20%, committed to the research and development and application of high temperature proton exchange membrane. The joint venture company will set up the Kun Ai-Baili membrane electrode testing Laboratory (Asia), which will be built in accordance with the standards of BASF high temperature proton exchange membrane electrode laboratory, and build an academic exchange and open platform for scientific research institutions, hydrogen fuel cell vehicle manufacturers, enterprises and institutions in the Asia-Pacific region to conduct technical testing in the field of hydrogen fuel cells.
The fuel cell master system with high temperature proton exchange membrane electrode (MEA) as the core can not rely on high purity hydrogen for preparation and storage, and can directly use hydrogen containing impurities from methanol reforming, which reduces complexity, improves the failure rate of operation, and effectively reduces the cost of fuel cell itself, which has a very great price advantage. Methanol is cheap and can maximize the convenience of existing gas stations, so its application in passenger cars will be easier and more convenient.
Profit forecast and investment rating: by raising the profit forecast, the company's net profit from 2019 to 2021 is expected to be 326 million, 4.77 and 572 million respectively, with a growth rate of 117%, 46.5% and 19.95% respectively, corresponding to a PE of 19.55,13.35,11.13 times. Maintain the "buy" rating and continue to recommend.
Risk tips: poor demand for lithium materials, lower-than-expected order delivery and revenue confirmation, lower-than-expected bidding by downstream customers, intensified competition in the industry, etc.