Event: the company announced that the ternary cathode materials have made phased progress: (1) of the 3000 tons of 5-series ternary materials, 2000 tons are fully produced and sold, and another 1000 tons are under trial production and are expected to reach full production by the end of July. (2) the high nickel 811 ternary material pilot test products have been tested by South Korea lithium battery authority RTL Co., Ltd. (CORN). The main performance indicators: gram capacity 204mAh/g, first effect 90%, all reach the international advanced level of the same industry, and meet the Korean LG chemical 3C lithium battery material selection standard. The production line of 2000 tons of high nickel 811 ternary materials is in the stage of installation and construction.
Lithium battery cathode materials have made breakthroughs one after another. The company's lithium cathode materials hold high. Under the leadership of Dr. Kim Youcheng, former chief technology officer of GSEM, high nickel NCM 811materials have developed rapidly and have now reached the Korean LG chemistry 3C lithium battery material selection standard. The company actively promotes 2000 tons of NCM 811 ternary material production line, the three main equipment from Japan's high sand, Japan's Hosokawa and other international well-known manufacturers, has arrived in May, is currently in the installation stage. The company plans to produce major raw materials, using imported or domestic high-quality products, through the "4m system management mode"
(raw materials, equipment, process methods, personnel management), to create industry first-class product performance standards.
The company has full production and sales of 2000 tons of NCM 523 cathode materials, and another 1000 tons are in trial production, which is expected to be full by the end of July. In addition, the company LFP cathode materials in the first phase of 3000 tons full production and sales. At present, customers of cathode materials include Penghui Energy, Bic, Youyou Power, Jiatuo New Energy, Voltaitong and other domestic well-known battery companies, and other customers are expected to verify breakthroughs one after another. The company's lithium battery cathode material has a long-term plan of 50,000 tons.
The supply and demand of industrial oxalic acid is improving, and the price continues to rise. Since the beginning of this year, driven by the resumption of rare earth mining overseas, the marginal improvement of the pharmaceutical industry and the mining of non-rare earth (copper, iron ore, etc.), the volume and price of oxalic acid industry has risen from 3150 yuan / ton to 4300 yuan / ton. net exports reached 38000 tons from January to April 2019, + 42 per cent year-on-year. The company has a production capacity of 100000 tons and great flexibility, and plans to build 100000 tons of oxalic acid capacity in the follow-up.
Electronic grade oxalic acid has a wide space. Driven by 5G, consumer electronics and automotive electronics, the MLCC industry has ushered in rapid development. Oxalate coprecipitation, as the main method for the preparation of barium titanate (the main material of MLCC basic powder), is expected to stimulate the demand for electronic grade oxalic acid. The company provides Japanese Panasonic with customized high purity electronic oxalic acid for multilayer supercapacitors, downstream mainly includes new energy vehicles and other fields, the application field is huge, the demand for oxalic acid is expected to be 20,000 tons / year; as a major domestic supplier of electronic grade oxalic acid and oxalate, the company benefits from large space of electronic grade oxalic acid.
Maintain a "buy" investment rating. It is estimated that the net profit for 19-21 is 0.78,1.38 and 213 million yuan respectively, EPS is 0.54,0.97 and 1.62 yuan respectively, corresponding to PE is 25X, 14X and 8X respectively, maintaining the "buy" rating.
Risk hint: the risk of product price fluctuation and the risk that product expansion is lower than expected.