Polyfluoride (002407): Fluoride salt price downside report exceeds expectations
The price of fluorinated salt business fell. The 2019 interim report exceeded expectations. On August 22, the company released the 2019 interim report, and the company’s revenue in 2019H119.
73 trillion, +15 for ten years.
17%; net profit attributable to mother is 0.
83 megabits, at least -36.
32%; net profit after deduction is 0.
44 trillion a year -63.
68%; revenue of 10 in the second quarter of 2019.
920,000 yuan, +28 for ten years.
33%; net profit attributable to mother 0.
4.1 billion, at least -24.
Due to the increase in the growth of the lithium battery business in the first half of the year, the business achieved growth, but the price of the fluoride salt business fell, resulting in the company’s overall profit pressure, which exceeded our expectations.
We believe that the company’s lithium hexafluorophosphate (referred to as 6F) business advantage is obvious, and electronic grade hydrofluoric acid products usher in development potential. We are optimistic about the 杭州桑拿网 company’s long-term development, and it is expected that the company’s EPS in 2019-21 will be 0.
56 yuan, maintain “overweight” rating.
The gross profit margin was under pressure in the first half of the year, and the overall expense ratio declined. The company’s gross profit margin for 2019H1 was about 21.
23% a year -7.
According to the company’s exchanges, the price of aluminum fluoride in H1 2019 fluctuated by about 2,000 yuan / ton, and the average price of lithium hexafluorophosphate fluctuated by about 20,000 / ton. The fluoride salt business was the company’s main source of profit, and the company’s gross profit margin was under pressure due to the downward price.
We believe that the current prices of aluminum fluoride and 6F are at low levels, and are approaching the cost line of some small factories. We expect that if the prices continue at low levels, weak competitive capacity will be cleared, and the company’s market share and profitability are expected to be realizedPick up.
The company’s 2019H1 expense ratio is 20.
72% a year -1.
77pct, of which the sales expense ratio is 4.
26%, ten years +0.
12 points; administrative costs 10.
1%, year -1.
51 points; financial expenses 2.
76%, -0 per year.
33pct; R & D expense ratio 3.
6%, -0 per year.
Electronic grade hydrofluoric acid meets the development potential, and the installed capacity of lithium batteries is significantly increased. According to the company’s announcement, the company has 22 hydrofluoric acid production capacity, including semiconductor grade, photovoltaic grade and ordinary grade, of which semiconductor hydrofluoric acid reaches UPSSS.
The company’s high-purity electronic grade hydrofluoric acid can replace Japan’s imports, and has now entered the supply chain of Korean semiconductor companies.
Construction of the subsidiary Ningxia Yingyingjin and the “Annual Production of 2-Socket Electronic Grade Hydrofluoric Acid Project” has begun.
In 2019H1, the company gradually sells about 4 yuan of ternary soft pack power lithium batteries.
200 million watt-hours, revenue reached about 4.
21 trillion, +389 a year.72%.
The company currently supplies Chery, and other OEM customers are also in continuous contact.
We believe that the company’s ternary soft-pack battery has energy density and cost advantages, can convert battery capacity expansion and the completion and commissioning of electronic-grade hydrofluoric acid projects, and is expected to continue to provide the company with performance growth momentum.
The lithium battery business has grown significantly. Maintaining the “overweight” rating of the company’s fluoride salt business as a domestic leader has an expanded cost advantage.
Affected by the decline in the price of the fluoride salt business in 2019H1, we expect the company to achieve net profit attributable to its parent of approximately 2 in 2019-21.
8.4 billion (down by about 26.
77% / 29.
71% / 27%), the corresponding EPS is 0.
The average PE of comparable companies in the same industry in 2019 is about 32 times. Considering the company’s lithium battery business has grown significantly, customers continue to develop; high-purity electronic grade hydrofluoric acid has entered the industrial chain of Korean semiconductor companies, trying to bring new performance growth points to the company,The company’s 44-45X PE estimate for 2019 corresponds to a target price range of 14.
30 yuan, maintaining the “overweight” level.
Risk warning: the spread between the upstream and downstream of the fluoride salt business is narrowing; new energy vehicle sales are lower than expected; the company’s business development is less than expected, and the receivables are impaired.