Enjie (002812) Incident Review： Overseas Market Accelerates Expansion and Performance Exceeds Expectations
Category : 夜生活
Enjie (002812) Incident Review: Overseas Market Accelerates Expansion and Performance Exceeds Expectations
Event: The company released an announcement: Q1 2019?
Q3 achieved 21 trillion in revenue, an increase of 29 per year.
88%; net profit attributable to mother 6.
32 ppm, an increase of 95 in ten years.
8%; non-net profit attributable to mother 5.
530,000 yuan, an increase of 252 in ten years.
The company’s actual net profit attributable to the parent is higher than the notice 5.
The 24 megabyte partition ceiling exceeded market expectations.
In essence, the company modified its plan to acquire Suzhou Jili and reduced its purchase consideration to 18.
10,000 yuan, and canceled the performance of betting terms.
Investment highlights: rapid growth in performance, exceeding market expectations.
The company achieved 7 in 2019Q3.
28 ppm, an increase of 12 in ten years.
51%, an increase of 0 from the previous month.
9%, realizing net profit attributable to mother 2.
43 ppm, an increase of 50 in ten years.
53%, an increase of 37.
5%, including deducting non-net profit 2.
31 ppm, an 87-year increase.
5%, an increase of 61% from the previous month.
In China, due to the release of production capacity and other reasons, prices have continued to rise, competition has intensified, and the company’s performance has grown rapidly, mainly due to the rapid development of overseas markets. The relatively stable price of its products has helped to increase the gross profit margin of products and hedge domestic price decline risks.
The proportion of overseas companies increased, the gross profit margin improved, and the production capacity expanded in an orderly manner.
The company’s budget growth for the third quarter of 2019 is expected1.
About 900 million flats, an increase of about 5% from the previous month and an increase of about 36% in one year.
50 million square meters, overseas share increased from 15% in 2019H1 to 24% in the third quarter.
The company’s gross profit margin for the first three quarters of 2019 was 44.
86%, net sales margin 33.
02%, 2019Q3 single quarter gross profit margin 46.
41%, an increase of 4 from the previous quarter.
02pct, the increase in the proportion of overseas sales drives the overall sales gross profit margin to rise.
The company’s initial base film production capacity was 1.3 billion square meters (300 million square meters of Shanghai Enjie + 1 billion square meters of Zhuhai Enjie), which was transformed into the second phase of Zhuhai Enjie, the Jiangxi Tongrui project (400 million square meters), and the second phase of Wuxi Enjie (5.
200 million square meters) and other successively put into production, the company’s annual production 杭州夜网 capacity exceeded 2 billion square meters at the end of the year, the new production capacity will directly benefit from the expansion of overseas sales channels, and promote sustained high-speed growth.
Expenses were well controlled and sales receipts improved significantly.
During the first three quarters of 2019, the company’s period expense ratio (including R & D expenses) was 11.
69%, an annual increase of 0.
27pct, of which the financial expense ratio is 2.
28%, with an annual increase of 1.
48pct is basically caused by the increase of the company’s budget business investment resulting in the increase of short-term expenditures and long-term borrowings; the management expense ratio3.
88%, sales expense ratio 2.
07%, R & D expense ratio 3.
46%, basically flat throughout the year.
Net cash flow from operating activities in the first three quarters of 20192.
US $ 0.5 billion, from negative to positive, with an annual increase of 172%, of which the net cash flow from operating activities in the third quarter of a single quarter was 8,839 million, from negative to positive, an increase of more than 156%.
Mergers and acquisitions have consolidated the leading sliders, with significant synergy effects.
The company revised its plan to acquire Gilead and decided to reduce the acquisition consideration to 18.
10,000 yuan, and canceled the gambling terms (the original terms of 2020-2022 net profit 1/1.
5/2 thousandths), whose purpose is to improve integration efficiency and obtain synergies. The acquisition can increase market share and strengthen leading integration; and it will help fill up the shortcomings in the consumer field and achieve both the consumption and power fields.Wheel drive.
From the domestic market point of view, we believe that the expansion of market competition is intensifying, and the low-end accumulation is gradually clearing. The industry concentration will further increase. The pressure of leading price reductions is relatively relative, and the price increase will be used to achieve performance growth. From the perspective of overseas markets,Jie binds major overseas customers LG Chem, Samsung SDI, Panasonic, etc. Overseas prices are stable and demand continues to increase. Newly acquired capacity will directly benefit from Enjie’s sales channels, save customers’ development costs, and speed up the breakthrough ratio of overseas consumer batteries.
Earnings forecast and investment rating: Based on the principle of prudence, as the acquisition of Geely has not been completed without considering its impact on the company’s performance for the time being, it is expected that the company will achieve net profit attributable to its mother in 2019-2021.
72 trillion, the corresponding EPS is 0.
70 yuan, PE is 32, 24, 19 times.
As a global leader in wet expansion, its overseas business is expanding rapidly, and its performance is expected to continue to grow at a high speed. For the first time, the company is given a “Buy” rating.
Risk Warning: New Energy Policy Risk; Downstream Demand Exceeds Expectations; Product Price Expectations; Uncertainty in Mergers and Acquisitions; Systemic Risks in the Market; Uncertain Impact of Public Issuance of Convertible Bonds