Sinoma Science & Technology (002080): Wind power blades recover soon

Sinoma Science & Technology (002080): Wind power blades recover soon

Event: The company disclosed its 2018 annual report and gradually realized a total operating income of 114.

47 trillion dollars, an annual increase of 11.

5%, to achieve net profit attributable to mother 9.

34 ppm, an increase of 21 in ten years.

75%, realized net profit after deducting non-return to mother 9.

350,000 yuan, an annual increase of 25.

67%.

The company plans to distribute a cash dividend of 2 for every 10 shares.

43 yuan (including tax), the capital reserve will be converted into 3 shares for every 10 shares.

Opinion: The demand for fiberglass business continues to improve, and profitability has slightly improved.

The company’s headquarters sells fiberglass and products 84.

5 for the first time, growing by 14.

4%, realized operating income of 58.

800 million, an 四川耍耍网 increase of 10 in ten years.

7%, Taishan Glass Fiber has achieved a net profit of 9.

6.1 billion, an annual increase of 38.

3%.

The downstream demand of the fiberglass business is supported by lightweight vehicles, electronics and electrical appliances, and has developed strongly. At the same time, the company continues to expand advanced production capacity, reduce production costs, and improve profitability. The alkali-free fiberglass and products gross margin increased by 1pct to 34.

88%.

The product structure of wind power blades continues to improve, and it is expected to bottom out.

The company sells 5587MW of wind power blades throughout the year, an increase of 14 per year.

99%, realized operating profit1.

950,000 yuan, up 36.

4%, the market share rose to more than 25%.

Among them, the company’s scale sales of 2 MW and above power blades totaled 5192 MW, accounting for 93% of total sales, and its holdings rank among the leading positions in the industry. The product structure has continued to optimize (83% in 2017).

However, due to the company’s transformation of the production workshop, production is in the run-in period, the gross profit margin fell to 14.

04% (3 per year reduction.

76pct).

Parity on the power generation side in 2020, we expect wind power will usher in rush installation in 2019, the industry demand turning point is upward.

Although there is a certain price pressure in the wind power industry chain and the cost advantage brought about by the scale effect, the company’s blade business is expected to rebound to bottom in 19 years after undergoing a product update transition period in 2018.

At the same time, it reports that the arbitration of the dispute between the company and Goldwind on the Panama project has been completed, and the cooperation relationship between the company and Goldwind has been streamlined.

As the company’s largest customer of wind power products, Goldwind Technology is conducive to closer cooperation in the future.

The lithium film business has been steadily advancing to achieve mass supply.

In terms of lithium film business, the company’s four production lines with an annual output of 60 million square meters have been completed, and the product yield rate has gradually increased, and the overall operation is good.

At the same time, the company’s lithium film business market has developed smoothly. It has been supplying in batches for internal battery companies, and has long-term cooperation agreements with some well-known battery manufacturers.

With the release of production capacity and increase in sales volume, the company’s lithium battery replacement industry’s profitability will continue to increase, and we expect this business to turn around in 2019.

Investment suggestion: The company is a leader in blades, binding high-quality wind turbine customers, and maintaining a leading position in reducing the volume for many years. It is expected that it will significantly benefit from the increase in industry demand and the increase in the market share of leading companies.

At the same time, the downstream demand for glass fiber has steadily increased, and lithium batteries have been staggered with the release of production capacity, and profits are expected.We adjust the company’s profit forecast and expect the company’s net profit attributable to its mothers to be 13 in 2019-2021.

7.1 billion yuan, 16.

3.8 billion and 17.

750,000 yuan, corresponding to the closing price of PE on March 19 is 13.

2, 11.

1 and 10.

2 times, maintaining the level of “prudent increase” and continue to be bullish.

Risk warning: downstream wind power recovery is less than expected, lithium film business advances less than expected, market competition intensifies