Enjie (002812): Three quarterly report exceeds expected wet position

Enjie (002812): Three quarterly report exceeds expected wet position

Performance summary: Enjie’s third quarter report exceeded expectations and achieved revenue in a single quarter.

3 trillion in the first three quarters, a total of 21 trillion in revenue, a growth rate of 29 in ten years.

9%.

Q3 realized net profit after deduction to non-returned mother 2.

4 trillion, a growth rate of 50 in ten years.

5%, in the first three quarters, a total of 5 net profit after deduction and return to mother.

500 million, the previous growth rate was 252.

8%.

The company’s gross profit margin increased significantly.

Due to the cold of the whole new energy vehicle industry in 2019, the pressure on the industry chain to reduce prices has restricted the gross profit margin of Q2 from 45 in Q1.

北京夜网9% dropped to 42.

4%, but the gross profit margin in the third quarter reached 46.

4%, a significant increase.

This is mainly due to the increase in the proportion of the company’s overseas expansion.

The scale effect is obvious.

The cost of a single product is mainly composed of raw material costs and manufacturing costs. The manufacturing costs are mainly depreciation. Analyzing the cost structure of Enjie and Star Source Materials, we can find that the industry’s raw material costs account for a relatively low percentage of the company’s raw materials in 2018.Operating costs were 65% and 42%, respectively. Due to the heavy asset characteristics, mass production is the basis for cost reduction. Cost reduction also promotes customer development, which complement each other.

Capacity utilization is the most 北京体验网 important indicator.

Since the manufacturing cost accounts for a relatively high proportion, when the production line’s production capacity is maximized and the yield is improved, the gross profit margin and ROE will increase significantly.

Comparing the financial status of each joint venture company in 2018, we can clearly trim it. Enjie is the company with the highest capacity utilization rate in the industry, resulting in the company’s continued high gross profit and ROE.

Continued capacity expansion further increased market share.

By the end of 2018, the company’s annual capacity of wet lithium batteries is 1.3 billion square meters, of which 300 million square meters are in Shanghai and 1 billion square meters in Zhuhai.

In 2019, 20 new lines are planned, 4 in Zhuhai Phase 2, 8 in Jiangxi Tongrui, and 8 in Wuxi Enjie.

In July 2019, the company issued an announcement to increase capital in Wuxi Enjieli. It plans to invest USD 2.8 billion to plan and build 8 base film production lines, 16 replacement production lines, and increase the annual output of lithium batteries to replace base films5.

200 million square meters, with an annual output of 300 million square meters of replacement membranes.

Earnings forecasts and investment advice.

It is estimated that the EPS for 2019-2021 will be 1 yuan and 1 respectively.

36 yuan, 1.

66 yuan, the net profit attributable to the mother in the next three years will maintain a compound intensity of more than 35%.

The company is the world’s largest wet dispersion manufacturer, and its cost of ownership is consistently lower than the industry’s ability to subdivide. We give 30 times PE in 2020 with a target price of 40.

8 yuan, the first coverage given a “buy” rating.

Risk reminder: the risk of a sharp decline in new energy subsidy policies; the risk of capacity climbing is less than expected.