Shanshan shares (600884) quarterly report comments: good cost control capabilities look forward to sales growth of the three major businesses

Event: The company released the 2019 first quarter report: 2019Q1 achieved revenue of 20.

32 ppm, an increase of 12 in ten years.

05%; net profit attributable to mother is 0.

35 trillion, down 76 a year.

37%; net profit after deduction is 0.

38 trillion, down 66 a year.

98%; corresponding EPS is 0.

032 yuan / share.

  Investment points: The company’s profit margin has declined and its cost control ability is good. 1) The company’s gross profit margin in the first quarter of 2019 was 21.

11%, a decline of 5 per year.

09 averages, but 19 from 2018Q4.

49% rebounded, the decline in gross profit margin was mainly due to the increase in operating costs (19.

79%) higher than revenue growth (12.


2) The company’s net interest rate in the first quarter was only 3.

23%, a decline of 6 per year.

The 72 single ones were mainly attributed to the profit of the above material materials business and the recognition of the disposal gains of Shanghai Lingang Project in the same period last year; and the company’s period expenses were well controlled in the first quarter, and the period expenses totaled 18.

34%, a slight decrease from the same period last year, of which the financial expense ratio (3.

39%) and R & D expense ratio (4.

74%) decreased by 0.

12, 0.

18 units.

  The capacity of the lithium battery materials business is gradually released, and the sales growth of the three major businesses is expected. The company is a comprehensive supplier of lithium battery materials. It currently has three major businesses: changing materials, alternative materials, and oxides.

1) The primary materials business is the company’s largest business, and now has a capacity of 6 replacements. The company launched a 10-injection high-energy-density lithium-ion battery cell material project in January 2018, of which Phase 1 Phase 1 production capacity reached 2018At the end of the year, trial production was started.

On high-end products, the company’s current 4.

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 samples have been sent to downstream customers in batches. NCM523 / 622/811 power battery materials have achieved large-scale expansion. It is expected that the ternary material capacity will continue to be released and sales will achieve rapid growth.

2) The existing production capacity of the polyamide material business is 8 inserted, but the initial capacity is still insufficient, and the terminal throughput cannot be fully released. When the first phase of Baotou, Inner Mongolia, with an annual output of 10 instead of the long-term material integration project is completed and put into operation, sales will effectively increase.At the same time, relying on the low electricity price advantage of Baotou, it can effectively reduce costs and increase product gross margin.

In terms of products, the company’s silicon carbon has reached mass production extremes, and has sent samples to multiple customers for testing, and has received small batch orders.

3) The existing capacity of the formaldehyde business4 has been profitable, but the company has begun to increase customer development. It has added major customers such as Guoxuan Hi-Tech, Yiwei Lithium Energy in 2018; meanwhile, the company has further developed formulas and developed special andNew additives.

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 16/14/12 times, maintaining “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 杭州夜网论坛 have exceeded expectations.