Shanshan (600884) Annual Report Comments： Lithium Battery Materials Business Drives Revenue Growth Customer Development Continues
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Shanshan (600884) Annual Report Comments: Lithium Battery Materials Business Drives Revenue Growth Customer Development Continues
Event: The company released its 2018 annual report: gradually realized revenue 88.
53 ppm, a ten-year increase of 7.
05%; net profit attributable to mother 11.
15 ppm, an increase of 24 in ten years.
46%; net profit after deduction of non-return to mother3.
03 billion, down 31 a year.
30%; corresponding EPS is 0.
993 yuan / share.
Investment points: Three major materials drive revenue growth, and investment income increases. 1) The company’s revenue growth in 2018 is mainly due to the positive growth in lithium battery material business revenue, which achieved revenue of 70.
50,000 yuan, an increase of 16 in ten years.
06%, of which short-term materials, anode materials and carbides achieved revenue of 46.
30,000 yuan, an increase of 9 yuan each year.
10%; Overall, revenue from the apparel products business increased by 16.
The energy management business was affected by the 531 photovoltaic new policy, the new energy vehicle business was affected by the basic suspension of the new energy bus and logistics vehicle business, and Ningbo Livineng and Yunshan Zhixing exited the scope of the consolidated statement, and revenue decreased by 16 respectively.
2) The company’s comprehensive gross profit margin in 2018 was 22.
10%, a decline of 3 per year.
The 29 units were mainly attributed to the decline in gross profit margin of the anode materials, clothing business and new energy vehicle business, of which the gross profit margin of raw materials fell by 7.
The 54 singles are mainly due to the increase in the value of low-cost raw materials in the same period last year, the increase in the proportion of sales of ternary materials with a reduced gross profit margin, and the increase in production capacity leading to an increase in depreciation costs per ton.
3) The company’s net profit margin in 2018 was 14.
09%, increase by 1 every year.
The 88 averages are mainly due to a 13% reduction in management costs.
The 62% increase in expenses during the period was lower than the increase in revenue, and due to the sale of Ningbo Bank shares in 2018 (8.
1.7 billion), cash dividends and other investment income.
91 trillion, a 55-year increase.
77%, investment income significantly increased the company’s performance.
4) In 2018, the company’s net operating cash flow for the first time6 was normalized for the first time for the first time, because the company continued to optimize the customer structure, increase the proportion of sales of high-quality customers at home and abroad, and better control accounts receivable.
Focus on lithium battery materials business, continue to develop customers, sales growth can be expected The company is a comprehensive supplier of lithium battery materials, now has target materials, replacement materials, oxide production capacity of 6 replacement, 8 replacement, 4 replacement.
1) The primary materials business is the company’s largest business, with sales in 20182.
01 Initially, it fell by 6 every year.
45%, mainly to ensure stable cash flow, the company reduced or even cancelled cooperation with some customers with poor repayments and higher risks.
However, the company’s successful expansion of high-end primary materials has led to a rise in revenue for multiple materials businesses.
45V high-voltage lithium cobaltate has been available in small quantities in 2018, and sales are expected to increase in 2019; 4.The 48V high voltage lithium cobaltate has been finalized and sent to downstream customers in batches; NCM523 / 622/811 power battery materials have been replaced in large quantities.
2) The anode materials business grew steadily in 2018, achieving sales volume3.
39, an annual increase of 9.
69%, due to insufficient front-end capacity, the terminal capacity cannot be fully released. When the first phase of the 10-ton-per-year adjacent material integration project in Baotou, Inner Mongolia is completed and put into operation, sales will increase effectively. At the same time, relying on the low electricity price advantage of Baotou, it can effectively reduce costs.To increase product gross margin.
3) In 2018, due to the increase in the development speed of power battery customers, the number of large customers such as Guoxuan Hi-Tech, Yiwei Lithium Energy, etc. was increased to double the sales volume to 1.
34 Initially, but not yet profitable, the net profit attributable to mother 杭州夜网论坛 after the depreciation of Juhua Kailan depreciation and the impairment of the goodwill of Luzhou Shanshan was -1955.
10,000 yuan, at least 232 can be reduced.
99 million yuan.
We believe that the rapid growth in sales of new energy vehicles drives the high demand for power batteries, and at the same time, energy storage batteries are in the growth stage. Driven by them, lithium battery materials will develop rapidly.
The company’s production and sales of lithium battery materials are leading in the industry, especially in the consumer battery market. Now it has increased the development of power battery and energy storage battery customers. The company has established cooperation with BYD, Guoxuan Hi-Tech and other large customers, and the cooperation continues to develop in the future.Deepening, which drives the company’s sales of lithium battery materials.
Earnings forecast, maintaining the “overweight” rating. Based on the above analysis, we expect the company to be in 2019?
In 2021, the EPS will be 0.
17 yuan / share, PE is 17/14/12 times, maintaining the “overweight” rating.
Risk warning: the growth rate of new energy vehicles exceeds expectations; the price of lithium battery materials has fallen more than expected; the company’s research and development progress and customer development have exceeded expectations.