Guoxuan High-tech (002074): Installed capacity increased by 1H19 every year

1H2019 results are in line with our expectations Guoxuan Hi-Tech announced 1H2019 results: revenue 36.

10,000 yuan, an increase of 38 in ten years.

4%, net profit attributable to mother 3.

52 ppm, a decrease of 24 per year.

5%, corresponding to a relative profit of 0.

31 yuan, in line with our expectations.

1H19 deducts non-attributed net profit 2.

92 ppm, an increase of 1夜来香体验网0 in ten years.

34%.

Benefiting from the growth of the battery pack business, the gross profit of the company increased by 1 in 1H19.

870,000 yuan, but the increase in interest expenses leads to an increase in financial costs1.

40,000 yuan and investment income, other income total decline by 1 every year.

6.7 billion, resulting in a decrease in net profit.

Development trend The increase in installed capacity has led to a significant increase in battery pack business revenue.

1H19 company’s power lithium battery achieved revenue of 32.

80,000 yuan, an annual increase of 48.

7%, mainly due to the substantial increase in installed capacity, according to high-tech lithium battery data statistics, 1H19 company’s power battery installed capacity1.

76GWh, ranking third in the country, with an increase of more than 97%, of which lithium iron phosphate and ternary installed capacity were 1.

57/0.

17GWh.

In terms of downstream customers, the installed capacity of JAC and Chery cars in 1H19 was 0 respectively.

99/0.

23GWh, accounting for 56% / 13% of the company’s total installed capacity.

Due to the decline in product quality, the gross margin of the power battery business declined.

12 minutes to 30.

35%.

Capacity expansion will help future growth, and the proportion of ternary products will increase.

1H19 company continued to accelerate the construction of investment projects. Nanjing Guoxuan, Qingdao Guoxuan High Specific Energy Power Battery Project and Guoxuan Battery Annual Production 4GWh High Specific Energy Power Battery Industrialization Project. Partial production lines were put into production in accordance with the schedule.The rapid release of production capacity, meanwhile, through the gradual commissioning of the Guoxuan battery production line and the successive listing of new models of downstream customers, the company’s ternary battery product proportion has gradually increased.

The layout of the industrial chain has been initially improved, and new product development has achieved remarkable results.

The company has successively invested in gradual, permanent and alternative exchanges of upstream key materials, and has now realized self-supply of transition materials.

In terms of products, the company has successfully developed lithium iron phosphate cells with a monomer energy density exceeding 190Wh / Kg, and successfully industrialized new energy customers such as JAC and Chery. It is expected that the monomer energy density will increase to 200Wh / Kg by the end of 2019The developed ternary cell products have achieved mass production, and the energy density of the single cell exceeds 210Wh / Kg.

Profit forecast and estimate Due to the impact of reduced subsidies and battery price reductions, we have lowered our profit forecast for 2019 by 34% to 6.

6 trillion, maintaining the 2020 profit forecast9.

20,000 yuan.

The company currently meets the corresponding 2019/20 P / E ratio of 22.

5/16.

5x, cut target price by 22.

2% to 17.5 yuan, corresponding to 34% growth space and 30 / 22x P / E ratio in 2019/20, maintain outperform industry rating.

Risk installed capacity was lower than expected, and project progress exceeded expectations.