Sinoma Science and Technology (002080): Wind power blades continue to improve towards glass fiber endogenous improvement
Investment Highlights Event: Sinoma Science and Technology released its 2019 semi-annual report, and the company realized an operating income of 60.
63 ppm, an increase of 27 in ten years.
74%; net profit attributable to mother 6.
52 ppm, an increase of 69 in ten years.
70%; net profit after deduction is 6.
140,000 yuan, an increase of 73 in ten years.
Net cash flow from operating activities was 4.
19 ppm, an increase of 15 in ten years.
In terms of quarters, 2019Q2 revenue was 34.
07 million yuan, a growth rate of 28 in ten years.
01%; net profit attributable to mother 4.
3.7 billion, the previous growth rate was 85.
All business segments of the company achieved full profits, and participation in industrial operations continued to improve.
Opinion: The wind power boom is on the rise, fully benefiting from the structural shortage of high-power large-leaf blades, and the amount of wind power blades in the first half of the year has achieved significant growth.
In the first half of 18, due to the industrial transformation and upgrading and the accumulation of new leaf-type capacity, the sales volume of the blades achieved a negative growth, and the profit was negative.
The first half of this year benefited from the upward trend of the industry, and the adjustment of product structure and production capacity layout was significant, with blade sales reaching 3 in the first half of the year.
20GW, a substantial increase of 139% each year.
Larger blades (high-power and large-leaf blades account for more than 20%) and tight supply and demand have driven the wind turbine blade revenue to increase significantly (operating income is 19%).
800 million, an increase of 134% in ten years).
The superimposed cost is reduced, and the loss is turned into profit, and the net profit is 1.
800 million, accounting for about 27% of the company’s total profit in the first half of the year.
Looking forward to the future, benefiting from the continued improvement of the industry’s prosperity, the industry leader Sinoma’s blade product structure, the mid-to-high end, and the large blade supply and demand tend to shrink. The company’s single megawatt price is on the rise.Share, and due to structural changes and scale effects, gross profit margin will significantly increase, and profitability is expected to increase significantly.
Benefit costs and expenses improved, and the profitability of fiberglass was higher and flat.
Fiberglass achieved sales of 41 in the first half of the year.
9 for the first time, with an annual increase of 4.
7%; revenue was 27.
9 ppm, 10-year average1.
1%; price may be close to 6%.
Due to the impact of increased capacity and uncertainties in the industry, the industry continued to bottom out, and the prices of low-end products continued to decline.
However, due to the high proportion of the company’s mid-to-high-end products and the continuous endogenous improvement of costs and expenses brought about by cost reduction and efficiency enhancement, the company’s main products include wind power yarns, thermoplastic yarns and high-end electronic yarns, which have achieved higher profitability in the first half3.
9 trillion, unchanged from the same period last year (18H glass fiber profit was 3.
950,000 yuan), the unit net profit slightly replaced, now 931 yuan / ton.
On a month-on-month basis, due to changes in the product structure in the second quarter, the average price increased, and the continuous improvement in costs caused the unit net profit to increase by about 300 yuan / ton.
Industry outlook. It is expected that the price of glass fiber will gradually bottom in the third quarter, and the fourth quarter may improve.
From the supply side, the quarterly marginal increase in production capacity has gradually decreased. Although the growth rate of demand may slightly shift, it still maintains growth. We expect the fundamentals to improve quarter-on-quarter.Judging from the current operating situation of major enterprises, the current price (about 4,200-4300 yuan / ton) of boulder products that are competitive in the entire market is not profitable. The new entrants in the industry and some of the higher cost are expected to lose money.The level of state cash flow, we expect the alkali-free roving to continue to decline to a limited extent.
Among the mid-to-high-end products, the price of electronic yarns is at the bottom of history and major companies are not making money. With 5G pulling some high-end electronic yarns, there is limited space for prices to continue to decline, and gradually change back; the global economic situation in the wind power industry is better.The two-year rush installation is obvious, and it is expected that the price of wind power yarns will continue to maintain the best level; the thermoplastic yarns used in the automotive field will be transformed into a marginal improvement in car sales, which will then be passed to the crop side and the demand side for glass fiber.Seasonal marginal improvement is worth looking forward to.
Lithium electric coaxial realized a turnaround.
At the end of the day, the company totaled 4 articles.
The production line with a production capacity of 400 million square meters is in good operating condition, the yield rate is continuously increasing, the production capacity is being accelerated, and mainstream customers at home and abroad have developed smoothly (CATL and Yiwei Lithium Energy), achieving large-scale sales, and have achieved slight profit in the first half of the year.
In August 19, the company invested 9.
The capital increase of 9.7 billion US dollars in Hunan Zhongli, the production capacity and market share has been rapidly increased, helping the company to achieve the leading strategy of lithium battery replacement industry.
With the active development of domestic and foreign customers and the 青岛夜网 subsequent release of production capacity, the profitability of lithium battery replacement is expected to increase rapidly.
The expense ratio was properly controlled, and the net profit margin increased steadily: The consolidated gross profit margin of the combined company was reported to be 27.
97%, a decline of 0 every year.
The company’s sales, management, R & D and financial expense ratios in the first half of the year were 3 respectively.
19% and 2.
85%, the overall expense ratio is 2 lower than the previous period.
Attributable net interest rate is 10.
76%, an increase of 2 a year.
66pct, benefited from the further decline in the company’s management and financial expense ratio.
Investment suggestions: 1. Wind power blades: the industry is booming, and the product structure and throughput layout adjustment effect is significant, fully benefiting from the structural shortage of high-power large-leaf blades; 2. Fiberglass: industry demand and supply progress has improved in the quarter, the companyThrough continuous optimization of production capacity and product structure, in-depth promotion of cost reduction and efficiency enhancement and gradual volume increase of new products, the company’s main products, including spun yarn, wind power yarn and thermoplastic yarn, have maintained a high level of profitability; 3. Lithium battery pack: Tengzhou new production lineThe operation is good, the yield is continuously improved, the production capacity is accelerated, the mainstream customers at home and abroad are developing smoothly, and mass sales are achieved; 4. Gas cylinders: Benefiting from the volume of new products and the recovery of the industry, the profitability of the gas cylinder industry has been greatly improved.
We believe Sinoma’s wind power blade business is expected to maintain high growth in 2019, and the profitability of glass fiber raw yarn remains stable. The gradual volume increase of the lithium power segment business is expected to contribute new performance increases.
We expect the company’s 2019-2020 net profit to be 14 respectively.
2 and 17.
200 million, corresponding to PE11.
7X, give “overweight” rating.
Risk reminder: glass fiber supplementary production capacity exceeds expectations, leading to higher product prices; environmental elimination of glass fiber production capacity is less than expected; in the future, some wind power supplementary installations are less than expected, and the company’s blade business is reduced; prices of the same model blades are reduced more than expected;Sales fell short of expectations and prices fell more than expected.