Hua Tailai (603659) quarterly report comment: rapid growth in revenue and profit

Hua Tailai (603659) quarterly report comment: rapid growth in revenue and profit

Key points of investment: The company released three quarterly reports for 19 years, reporting a series of 35 realized operating income.

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

80%; realize net profit attributable to shareholders of listed companies.

58 ppm, a six-year increase of 6.

83%; Realize net profit attributable to shareholders of listed companies in place of non-recurring gains and losses4.

$ 2.5 billion.


Ping An’s point of view: rapid growth in revenue and profits, and a narrowing of the comprehensive expense ratio: the company achieved operating income in the third quarter of 1919.

2.4 billion, an increase of 44 per year.

91%, an increase of 15 from the previous month.

3%; net profit attributable to mother 1.

950,000 yuan, an increase of 13 in ten years.

11%, an increase of 44 from the previous month.


In the third quarter, with the general emergence of the domestic power battery market, it is expected that the company’s revenue growth will mainly depend on large consumer battery customers such as ATL.

Company 3Q19 comprehensive cost expense 13.

64%, narrower than the previous month.

38pct; the sales expense ratio and research and development expense ratio increased month-on-month, and the financial expense ratio and management expense ratio decreased significantly.

Needle coke graphitization was put into production, and the gross profit margin continued to rise: the gross profit margin of the company in 3Q19 was 30.

83%, an increase of 3 from the previous quarter.

51 points; net interest rate 15.

67%, an increase of 4 from the previous quarter.


The comprehensive gross profit margin has rebounded for two consecutive quarters since bottoming out in the first quarter.

In the third quarter, the temporary and replacement prices of the company’s main products remained stable. We expect that the improvement in the overall gross profit margin will be mainly due to the completion of the company’s 4-pin-shaped coke products for revitalizing carbon, and the company’s dependence on imported needle-shaped coke will be reduced.Chemical production capacity has also begun to be put into production gradually, and it is expected that 2 injection capacity will be released in the second half of the year.

As the company’s value-added for revitalizing carbon materials and the capacity of important raw materials are further released, the company will continue to strengthen its control over short circuit costs and its gross profit margin will continue to increase.

The fund-raising project has landed quickly, 佛山桑拿网 and the production capacity is about to be released: the company’s account has monetary funds at the end of the third quarter of 20198.

RMB 710,000, a decrease of 34 from the beginning of the year.

75%, mainly due to the company’s accelerated IPO fundraising and investment project construction, and the use of funds raised to accelerate the progress.

It is expected that the company’s initial IPO fundraising project will be put into production in four quarters, and the growth will gradually increase to 5-6 indicators.

In addition, 2.

The project of 4 billion square meters to replace the insertion and replacement machine equipment is progressing in an orderly manner at the same time.

The company’s maximum production capacity is expected to reach more than 8 in three years, and the replacement processing capacity 天津夜网 will double, and the scale of revenue will gradually increase.

Investment suggestion: To transform the rapid development of new energy vehicles, the company will realize the performance and kinetic energy conversion of consumer lithium battery products to power lithium battery products.

The sales side of the company will benefit from the volume of overseas electric markets, and the cost side will also benefit from the vertical integration of its own business.

We maintain the company’s 19/20/21 profit forecast EPS is 1.


07/2.60 yuan, corresponding to the closing price of PE on October 30 were 28.



5 times, maintain the company’s “recommended” rating.

Risk reminders: 1) business structure adjustment risks, the company’s short-term business motivation ratio continues to increase, if the upstream layout of the industrial chain is less than expected, it may lower the initial business average price and gross profit level; 2) business risks, if the company ‘s base film customersThe introduction of less than expected, affecting the company’s expansion of business unit value and comprehensive profitability; 3) the risk of investment projects, the company’s restructuring capacity will reach 8 or more in three years, and will replace the doubling of processing capacity.Rate and profitability of investment projects.

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