Zhongke Sanhuan (000970) 2019 Interim Review： The performance trend in the first half of the year continues to be optimistic about the power motor magnetic materials
Zhongke Sanhuan (000970) 2019 Interim Review: The performance trend in the first half of the year continues to be optimistic about the power motor magnetic materials
Investment Highlights The company released its 2019 Interim Report: Operating income for the first half of the year18.
8 ppm, with a ten-year average of 4.
5%; net profit attributable to mother 1.
00 ppm, 10-year average of 10.
7%; deduct non-attributed net profit 0.
85 ppm, with a ten-year average of 16.
In Q2 2019, the company’s revenue was 0.
96 ppm, with a ten-year average of 6.
1%; net profit attributable to mother 0.
56 ‰, 20 years ago.
0%; deduct non-attributed net profit 0.
45 ‰, 27 years ago.
The company’s average gross profit and revenue are the main factors for the company’s performance growth.
The company’s revenue was temporarily suspended in the first half of the year.
5%, gross margin is 18.
43%, compared with the same period last year 1.
In terms of gross profit, the company’s gross profit was 3 in the first half of this year.
470,000 yuan, an overlap of 0 over the same period last year.
We expect the company’s magnetic material sales to increase in the first half of the year.
Mainly in the first half of the year, the price of raw materials of praseodymium and neodymium metal may drop9.
In addition, the company’s financial 杭州夜网论坛 expenses and asset impairment have also caused the company’s performance to be affected.
In the first half of this year, the company’s financial expenses were 5.84 million yuan, an increase of 17.12 million yuan over the same period last year.
The increase in financial expenses was mainly due to index expenditure and exchange loss overflow.
In terms of asset impairment, the company suffered an impairment of about 25 million in the first half of the year, an increase of 23 million compared with the same period last year.
Seize the development potential of electric vehicles and be optimistic about the company’s long-term development.
In terms of domestic competition, the company is a well-deserved leader in the industry, and it has the earliest layout of automotive magnetic materials, accounting for the highest proportion.
Judging from overseas competition, the company also has outstanding advantages.
First, from a global perspective, China’s production of neodymium iron boron nanotubes has outstanding advantages, and even overseas giants have shifted to China for production.
The second is the company’s ability to compete with overseas giants in terms of production scale and technical capabilities, and the company has completed rare investment in South China and other stocks.
Earnings forecast and grade: Reduce the performance forecast for 2019-2021, and expect to achieve net profit attributable to mothers respectively.
200 million, 4.
520,000 yuan, 5.
73 trillion, corresponding to EPS.30, 0.
54 yuan / share. The corresponding PEs at the closing prices on August 16 were 33X, 23X, and 18X, respectively.
Taking into account the rapid increase in the demand for electric vehicle magnetic materials and the company’s leading system, maintain the level of “prudent increase”.
Risk warning: NdFeB demand is less than expected; rare earth prices fluctuate sharply; new energy vehicles are less than expected