Guoxuan Hi-Tech (002074) 2019 Interim Report Review: Interim Report Meets Expected Steady Growth of Iron and Lithium

Guoxuan Hi-Tech (002074) 2019 Interim Report Review: Interim Report Meets Expected Steady Growth of Iron and Lithium

Core point of view The company’s 2019H1 deducts non-attributed net profit 2.

9.2 billion, +10 in ten years.

3%, basically in line with expectations.

The company has been deeply involved in the field of lithium iron phosphate. For many years, it has adopted technology and cost advantages and is expected to obtain new energy vehicles to evaluate the growth of demand for power batteries after the withdrawal. The company continues to expand the international market, continues to enjoy the industry growth dividend, and maintains a “buy” rating event:On August 28, the company released its semi-annual report for 2019 and achieved revenue of 36.

100 million, +38 a year.

4%; net profit attributable to mother 3.

5.2 billion, at least -24.

5%, net of non-attributed net profit 2.

9.2 billion, +10 in ten years.

3%, we comment as follows: 2019H1 deducted non-attributed net profit2.

9.2 billion, +10 in ten years.

3%, basically in line with expectations.

2019H1 company achieved revenue of 36.

10,000 yuan (ten years +38.

3%), net profit attributable to mother 3.

520,000 yuan (at least -24.

3%), deduct non-attributed net profit 2.

920,000 yuan (ten years +10.

3%), deducting non-net interest rate is 8.

1% (twice -2.

0pcts).

  Among them, 2019Q2 revenue was 18.

60,000 yuan (ten years +19.

9%), net profit attributable to mother 1.

5 billion (decade -50.

8%), deducting non-attributed net profit 1.

1.5 billion (year-12).

3%), the non-net interest rate deducted in the second quarter was 6.

2% (six years-6.

3pcts, -3 from the ring.

9).

The negative increase in net profit attributable to mothers was obtained from government subsidies in 2019H1 from the same period last year.

8 billion pounds 0.

770,000 yuan, and the sale of Suzhou Guoxuan subsidiary during the same period last year received zero investment income.

6 billion.

   Gross profit margin, the rate during the period is relatively stable.

Gross profit margin of 2018H1 / 2018H2 / 2019H1 power battery 32.

5% / 25.4% / 30.

4%, 2019H1 gross profit rate ton-2.

1pcts, +5 chain.

0pcts.

Taking into account the subsidy decline in the second half of the year, it is expected that the gross profit margin will be affected by the downstream price reduction.

In terms of period expenses, the company’s period expenses for 2019H1 are 17.

6% a year -1.

One.

The selling expense ratio is 4.

1%, the management expense rate is 5.

0%, respectively, -2.

One, -1.

3pcts, a significant decline; R & D expense ratio 4.

8% per year.

3pcts, R & D expenses1.

7 ‰, + 41% per year, sustained vigorous R & D; financial expense ratio 3.

7%, +2 per year.

5pcts, which are bank loans, increased the green bond index expenditure.

   2019H1 installed capacity ranked third, iron and lithium consolidation has grown steadily.

2019H1 company’s power battery installed capacity1.

76GWh, with a market share of 5.

9%, the same as the same period in 2018, ranking third in China.

According to high-tech data, the number of 2019 H1 power batteries is 2.

0GWh, with a market share of 5.

7%, -0 compared to the same period last year.

5.

Among them, the company’s lithium iron phosphate battery installed / joined 1.

57/1.

76GWh, +85% / + 68% in the 南京龙凤网 past, maintained steady growth. It gained Chery special vehicles, eQA00-class passenger car packages, and JAC electric passenger cars.

2019H1 ternary battery installed / imported only 0.

19/0.

24GWh (2018 up to 0.

78/0.

74GWh), which is a major customer of BAIC New Energy EC, and its sales volume was greatly affected by the subsidized decline.

   Overseas support to explore the international market and gain new growth space.

Following the announcement in February 2019 to enter the German BOSCH supply chain supporting 12V / 48V light hybrid system to start the battery, the company announced on May 14 that its wholly-owned subsidiary Hefei Guoxuan plans to invest 40% of its shares in India with Tata AutoComp(60% of the company). A joint venture company was established in India. The company is committed to grasping the important strategic prospects of sustainable development and opening up overseas lithium battery market space.

   Risk factors: Sales of supporting core customers are not up to expectations; industry competition is intensifying; overseas market expansion is less than expected.