Guanghua Technology (002741): Falling Metal Prices Affect Q1 Results Waiting for New Projects to Put into Production to Improve

Guanghua Technology (002741): Falling Metal Prices Affect Q1 Results Waiting for New Projects to Put into Production to Improve

Event company released the first quarter of 2019 report The first quarter of 2019, the company achieved revenue3.

91 ‰, an increase of 9 in ten years.

34%, an increase of 20 from the previous month.

01%; net profit attributable to mothers was 14.41 million yuan, a decrease of 46 per year.

37%, an increase of 279.

04%; net profit after deduction of 7 million yuan, a year of 73 reduction.

04%, an increase of 169.


A brief comment on the decline in metal prices will affect the company’s profitability. The first quarter of 2019’s performance will decline, mainly due to the decline in metal prices, which will result in a narrower product profit margin.

The company’s overall gross profit margin was reported as 19.

25%, ten years ago4.

11 levels, level 5 from the previous quarter.

The 47 single ones are expected to be mainly due to the 100-inch spodumene beneficiation project entering the scope of the statement, which will lower the profit margin.

From the perspective of metal prices, the spot price of copper in 2019Q1 was 48720 yuan, which will decrease by 7 in the future.

0%, down 1 from the previous month.

7%; tin spot price of 147,625 yuan, an increase of 1 over.

5%, up 1 from the previous month.

1%; the spot price of nickel is 99,245 yuan, which will decrease by 1.

2%, an increase of 0 from the previous month.

1%; the price of cobalt is 3,175,783 yuan, a decrease of 47 per year.

7%, a month-on-month decrease of 24.

1%; the price of lithium carbonate is 78,528 yuan, which will decrease by 49 in the future.

5%, a decrease of 0 from the previous month.


During the reporting period, the company’s expense ratio reached 17.

39%, an increase of 2 every year.

93 units.

Of which, the management cost is 20.78 million yuan, which is increased by 68 every year.

10%, mainly due to the establishment of new subsidiaries, the use of new office buildings, resulting in increased management costs; research and development costs of 18.04 million yuan, an increase of 33.

53%, mainly due to the company’s comprehensive report on the 14,000-ton lithium battery initial material project in the report led to an increase in research and development costs; financial costs of 10.19 million yuan, an increase of 381.

82%, mainly due to the increase in interest expenses.

Continued layout of waste power lithium battery recycling channels. The company has recently entered into multiple waste battery recycling strategic cooperation agreements with Wuzhou Automobile, Chery Wanda, BAIC Penglong, Nanjing Jinlong and other component vehicle manufacturers.

The power lithium battery recycling industry is on the eve of the outbreak. For industry companies, there will be several core barriers in the future competition: 1) Barriers to waste battery recycling channels-ensuring continuous and stable, reasonably priced recycling channels are important for recycling companies.2) Technical barriers-at present, there is no mature and unified universal technology in the industry, and the technological maturity and recovery costs of different recycling companies are different from each other; 3) Project site selection, qualification barriers-waste battery recycling processIt will involve the discharge of some three wastes. Under the background of severe environmental protection supervision, project approval will be obtained. Reasonable site selection will become the focus.

The construction of waste power lithium battery recycling channels will become a focus of work for industry companies in the future.

The industry’s prosperity is picking up, domestic replacement logic is smooth, and the strong growth of the main PCB chemical industry is accompanied by the recovery of the downstream electronics market. In 2017, the global PCB industry’s output value reached 55.3 billion US dollars, an increase of 2%, and returned to the rising channel; taking advantage of costs and the industryThe supporting chain is becoming more and more perfect, and the focus of the global PCB industry is constantly shifting to China. In 2017, the Chinese industry’s output value accounted for 51% of the world’s total; the market share of Chinese local PCB manufacturers continued to increase at the same time, and the industry’s development trend is improving.

As a supporting product for the PCB industry, with the improvement of industry product requirements, environmental protection regulations have become more stringent, the small capacity of the PCB chemical industry has gradually been cleared, the industry concentration has increased significantly, and the CR5 index has increased year after year.

As a leader in the industry, the company has achieved a good reputation in the industry in the short term, established a high-quality brand image, and steadily increased its market share.

However, the overall dispersion of the industry is still high at present. The company is the industry’s first domestic brand. Its market share in 2017 was only 4%, and there is huge room for future growth. Layout of the “lithium battery recycling-lithium battery 四川耍耍网 materials” industry chain to open up the imagination space for the development of PCB chemicals. While the company has entered the lithium battery field since 2017, it has laid out ternary precursors, iron phosphate, lithium iron phosphate, and ternary interval.Materials, lithium battery recycling production line.

The company has obvious advantages in the field of lithium battery deployment: 1) it has advanced chemical production technology, obvious advantages in the cost of iron phosphate technology, and high efficiency of lithium battery material recovery; 2) the formation of a closed-loop industrial chain of “battery recycling-raw materials-precursors-multiple materials”The advantages of integration are obvious; 3) Selected into the list of the first batch of lithium battery recycling test sites (only 5 in the world),北京桑拿体验网 and obtained the first-mover advantage of industrial layout.

New energy vehicle sales began to increase in 2013. According to the 3-5 year life cycle, the battery recycling market has gradually opened rapidly after 2018, and the industry output value is expected to reach more than 40 billion in 23 years.

The company is the first to make a layout in this field and is expected to become a strong support for future profit growth.

Maintaining a “Buy” rating. The company has a long history of accumulation, obvious technical advantages, and sound operation management. In the short term, it will benefit from the improvement of the industry’s prosperity and gradually replace domestic alternatives. The main business of PCB chemicals will maintain strong growth.The “recycling-lithium battery material manufacturing” business is in line with the industry’s development trend, and the volume will be ready soon; the capacity under construction will be gradually launched in the next two years, and the growth of the business is highly certain.

It is expected that the company will realize net profit attributable to mothers in 19 and 20 years1.

94, 2.

80 billion, corresponding to EPS 0.

52, 0.

75 yuan, corresponding to the estimated value of 25X, 17X, maintain “Buy” rating.