Tianci Materials (002709) Performance Express Review Comments: Performance Meets Expected Future Outlook and Rapid Growth

Tianci Materials (002709) Performance Express Review Comments: Performance Meets Expected Future 佛山桑拿网 Outlook and Rapid Growth

Event: The company released a performance report: the net profit attributable to shareholders of listed companies in 20184.

5.9 billion, an annual increase of 50.

68%, the corresponding eps is 1.

35 yuan, an increase of 46 per year.


Among them, the company’s change in accounting methods for its fault-tolerant lithium industry and its disposal of equity in the fault-tolerant lithium industry increased investment income4.

2.9 billion.

In addition to the above investment income, the company realized a net profit attributable to shareholders of the listed company of 30.01 million yuan, a decrease of 90 from the same period last year.

15%, performance is in line with expectations.

Key points of investment: The growth rate of the decline in product prices and the increase in expenses: The main reasons for the decline in the company’s operating profit growth in 2018 were (1) intensified market competition and decline in sales prices of the company’s products and products, leading to a decline in gross profit margin;The increase of subsidiaries in the scope of the report results in an increase in period expenses; (3) the company’s R & D expenditure, labor, depreciation and amortization increase; (4) the increase in bank expenditures results in increased interest expenses.

The price of gasoline has increased steadily, and the price of lithium salts may rise. Future high-speed growth is expected: According to GGII data, the company’s circulation in 2018 is 3 per year.

57 Every year, at least 2017 has increased by about 23%.

Based on the rapid growth of the industry and the endorsement of quality customers, we expect the company to achieve sales of more than 5 in 2019, corresponding to a 40% sales growth.

At the same time, according to GGII data, in the field of power batteries, 2016Q1 gasoline has about 8 tax-containing oxides.

50,000 yuan / ton, the price fell to 3 in 2018Q1.

90,000 yuan / ton, the current rebound to about 4.

4 million / ton, at the same time, the lithium salt, that is, lithium hexafluorophosphate, has risen and fallen at the same time, and the current price has rebounded slightly.

In general, due to the industrial excess of lithium salt capacity, prices continue to decline. At present, small factories have approached the cost price and even decreased, and are at the low-end capacity to accelerate the process of clearing.The company as a leader in lithium salt will benefit significantly.

The company currently owns 1.

4 The production capacity of lithium hexafluorophosphate, including 4,000 tons of solid production capacity and 30,000 tons of liquid production capacity (equivalent to 10,000 tons of solids). As an integrated leader of lithium salt and tungsten carbide, the company has great flexibility in the future.

Other businesses are advancing steadily and orderly.

The company continues to innovate and perfect its production processes, equipment and technologies through the production of core and key raw materials for its main products, establishes a cyclic industrial chain system, and gains a sustainable cost competitive advantage.

At the same time, companies with core customers or technological advantages are also acquired through mergers and acquisitions.

Fundamental materials: The company plans lithium beneficiation, lithium carbonate processing, subdivided material precursors and vertical materials lithium iron phosphate. Through its participation in upstream raw material suppliers and horizontal collaboration with other material providers in the industry chain, it will consolidate and expand the company’sInfluence.

Hydrofluoric acid: At present, the company’s self-supply capacity of hydrofluoric acid has exceeded 10,000 tons.

At the same time, the company plans to build an annual output2.

5 The initial electronic-grade hydrofluoric acid project is still in the early stages of construction.

Daily Chemical Materials: The sales scale has achieved stable growth. Under the influence of the company’s strategy of actively adjusting the product structure of daily chemical materials, the growth of the gross profit margin and sales volume of daily chemical materials have steadily recovered to historical average levels.

Equity incentives and high unlocking standards demonstrate confidence: The company released the 2019 stock quote and exchange stock incentive plan on January 23, and plans to grant a total of 921 equity to incentive objects by way of targeted issuance.

970,000 shares, accounting for 2% of total equity.

72%, whose unlocking condition is the company’s performance appraisal requirements for 2019?
The net profit after deduction of non-incentive costs in 2021 shall not be less than 2.

5, 5.

1, 6.

5 megabits, a significant improvement over the 2018 performance.

This equity incentive plan has higher requirements for unlocking, which shows the franchise’s confidence in the company’s rapid growth in future performance.

Maintain “overweight” rating: The company’s net profit in 2019 and 2020 is expected to be 3 respectively.

34, 5.
08,000 yuan, corresponding to 0 EPS.
98, 1.

50 yuan, the corresponding assessment is 35, 23 times.

Based on the company’s core product price reversal and elasticity of future performance, we maintain the company’s “overweight” rating.

Risk warning: policy risks; customer expansion exceeds expectations; product prices exceed expectations; production expansion progress exceeds expectations.