Wu Tailai (603659) quarterly report comments: the third quarter of costs accelerated to try to usher in a profit inflection point

The third-quarter performance increased greatly from the same period last month, and the cost will enter the downward channel. The company announced the first three quarters of revenue 35.

10,000 yuan, an increase of 52 in ten years.

8%, net profit attributable to mother 4.

58 ppm, a six-year increase of 6.

83%, net of non-attributed net profit4.

$ 2.5 billion.

52%, including single-quarter revenue of 13 in the third quarter.

24 ppm, an increase of 15 from the previous month.

30%, an increase of 44 per year.

91%, net of non-attributed net profit1.

810,000 yuan, an increase of 43.

82%, an annual increase of 58.

33%, gross profit margin of 30 in the third quarter.

83%, a new high since the third quarter of 2018, which was an increase of 3 from the previous quarter.

51 averages, at least an increase of 1.

17 singles, which have been reversed and improved after continuous downward exploration since the fourth quarter of 2017, and the non-net interest rate was deducted in the third quarter of 13.

67%, an increase of 2 from the previous quarter.

71 averages, an increase of at least 1.

16 units.

After the third quarter, the price of raw materials and the graphitization / carbonization process have been successively put into production, and cost digestion has significantly improved the profitability from the previous quarter.

The extension of the upstream to develop the integration of the industrial chain is expected to help the continuous material gross margin bottom out and rebound.

According to the Interim Report, the reorganization, the internal Meng Xingfeng 5 replaced the graphitization capacity and completed the construction in the first half of the year. The company reorganized, and the company took a stake in revitalizing carbon.Expect to reach 4 The capacity of inserting coal-series needle coke has gradually completed small-scale supply.

The annual growth rate of capacity expansion is more than 60%, and the company has fully entered the power battery market. The IPO has raised 2 to insert repeat materials. The capacity expansion progress is close to 70%. It is expected that it will be fully operational in the second half of the year, with a total capacity of 5 tons.The sales of 5 indicators, Puyang convertible bonds raised project 3 is expected to be put into operation in 2020 to form the capacity of 8 indicators.

Based on ATL, Samsung SDI and other consumer battery customers, the company puts capacity into production and accelerates the development of the power market.

Investment suggestion: The profit turning point is about to be ushered in. We maintain the buy rating without considering the impact of the conversion of debt-raised projects. The company’s EPS for 2019-2021 is expected to be 1.

67, 2.

14 and 2.

72 yuan / share, for the midstream lithium battery leader company, considering the high barriers 深圳SPA会所 of the company’s card swap, giving a 2019 performance of 35X price-earnings ratio, a reasonable value of 58.

5 yuan / share, maintain BUY rating.

Risk reminder: The price of anode materials has fallen more than expected; the customer development has fallen short of expectations.