GEM (002340): Performance is slightly higher than expected. Release of overlapping battery recycling strengthens growth momentum.

GEM (002340): Performance is slightly higher than expected. Release of overlapping battery recycling strengthens growth momentum.

Event description: The company released its 2018 annual report on March 29, 2019.

The company achieved revenue of 138 in 2018.

78 ppm, an increase of 29 in ten years.

07%; net profit attributable to mother 7.

30 ppm, an increase of 19 years.

66%; realized gross profit margin 19.

16%, net interest rate 5.

61%; EPS is 0.

19 yuan.

The company plans to raise no more than US $ 3 billion in non-public offerings for the production of ternary power battery material precursor projects and oriented material projects.

  Event 无锡夜网evaluation: The ternary precursors lead the production capacity and strengthen the driving force for performance growth.

In 2018, the injection volume of ternary precursors reached 40,000 tons, becoming the number one domestic and forefront producer in the world, and built a ternary precursor 8 replacement / year capacity.

The fixed increase was completed in September 2018, and a private offering is planned in 2019 to continue to expand production capacity. It is expected to achieve 10 production capacity in 20杭州桑拿 20.

The company’s mainstream supply is Samsung’s supply chain, ECOPRO, CATL, Ningbo Rongbai and other global industry mainstream companies.

ECOPRO plans to purchase a total of 17 to high nickel NCA precursors from the company in 5 years, of which 1 for 2019-2021.

6/2.

4/4, and the company’s supply to the Ningde era in 2019 is also expected to reach 3 inches.

With the continuous increase of production capacity, the volume and revenue of the company’s ternary precursors have also increased rapidly.

  With the standardized development of the battery recycling market, the company is expected to open up new growth points.

The Ministry of Industry and Information Technology promotes the standardized development of the power battery recycling industry, and the domestic power batteries will usher in the first batch of large-area replacements in 2019-2020, with great market potential.

As a domestic resource recycling leader, GEM will fully benefit from the positive development of the power battery recycling market.

The first is the first-mover advantage of technology; the second is the strategic cooperation of downstream companies in developing countries with a guaranteed market share;

  Investment rating and estimation: According to the profit forecast, the company’s net profit attributable to its parent in 2019-2021 is expected to be 10 respectively.

65, 12.

67, 16.

73 trillion, corresponding to 19 respectively.

64, 16.

52, 12.

50. Maintain the “Recommended” level.

  Risk warning: Cobalt and nickel prices fall; new energy vehicle demand is less than expected; company capacity release is less than expected