Enjie (002812): orders from overseas customers make use of global leading advantages and strive to expand

Enjie (002812): orders from overseas customers make use of global leading advantages and strive to expand

Investment Highlights: Company Announcement: LG Chemical and the company’s subsidiary Shanghai Enjie signed a “purchase and sale contract” for the wet method for vehicles. The contract effective date is April 4, 2019, and the total contract amount does not exceed 6.

$ 1.7 billion with a five-year contract.

Orders from overseas customers are intensifying, and global leading advantages continue to expand.

Shanghai Enjie has developed into a global leader in wet segmentation. In 2018, the global segment segment accounted for 14% of the market and China’s wet segment segment accounted for 45% of the market.

In addition to domestic customers such as CATL, Guoxuan Hi-Tech, BYD, Funeng, Lishen and other high-quality customers, it has entered the supply chain of overseas customers such as LG Chem, Samsung, and Panasonic.

Among them, the company’s 2018 operating income of LG Chemicals1.

US $ 5.3 billion (mainly 3C), accounting for 11% of expanded business.

5%, the company’s third largest customer.

This “purchase and sale contract” is an order for power batteries, with the total amount not exceeding 6.

USD 1.7 billion (equivalent to about RMB 4.2 billion) for 5 years. It is expected that the company’s amount of LG chemical preparations in 2019 is expected to increase from less than 40 million flats last year to more than 100 million flats.

The company has won large long-term orders for power batteries from overseas 天津夜网 customers, marking that its product performance has reached the world’s leading level.

In the future, Panasonic, Samsung and other overseas customers are also expected to accelerate the volume, and the company’s global leading advantages will continue to expand.

The company has made breakthroughs in the production and sales funding, and intends to use convertible bonds to raise funds to continue to expand production capacity.

By the end of 2018, Shanghai Enjie’s wet molecular weight has increased by 1.3 billion square meters, transforming the rapid development of new energy vehicles at home and abroad, and downstream customers have expanded large-scale production plans.

The company’s current production capacity is still in short supply, and the amount of wet decomposition and restructuring in the first quarter of 201天津夜网9 is expected to be about 1.
.

700 million flat, a growth of nearly 180% in ten years.

The company’s latest convertible debt plan, the proposed raised capital does not exceed 1.6 billion US dollars, of which 600 million US dollars will be allocated to the Jiangxi base 400 million flat battery replacement project (Jiangxi base total investment 17

5 ppm), 10 ppm budget construction of Wuxi base (Wuxi base total investment 2.2 billion).

The company plans to complete the construction and commissioning of 20 production lines by the end of 2019 (8 in Jiangxi, 8 in Wuxi, and 4 in Zhuhai), with a capacity of 2.8 billion pings.

The company’s production capacity is expanding rapidly, and customers at home and abroad continue to increase its capacity to help capacity digestion.

Earnings forecast and forecast: Maintain “overweight” rating and maintain earnings forecast. It is expected that net profit will be attributable to mothers in 2019-21.

40, 11.

33, 15.

7.2 billion, EPS 1.

77, 2.

39, 3.

32 yuan, PE 28X, 21X, 15X.

Risk reminder: release of production capacity exceeds expectations, intensified competition in the industry leads to sharp fluctuations in product prices