Kodali (002850) Third Quarterly Report Review: Growth Cycle Begins, Long-term Performance and High Growth Clear

Kodali (002850) Third Quarterly Report Review: Growth Cycle Begins, Long-term Performance and High Growth Clear
Event description The company released the third quarter report of 2019. From January to September 2019, the company realized revenue of 1.7 billion, an increase of 26%; and realized net profit attributable to shareholders of the parent company1.500 million US dollars, an annual increase of 235%; net profit attributable to shareholders of the parent company after deduction.40,000 yuan, an increase of 385% in ten years. Event commentary profitability has recovered significantly, driving significant growth in performance.The company achieved 5 in 2019Q3.27 trillion US dollars each year, a certain range from the previous quarter, is expected to be mainly affected by the weakening of the lithium-ion industry chain’s mid-year scheduling intensity.In terms of profitability, the company’s gross profit margin for Q3 2019 was 28.8%, a significant increase of 10 per year.3pct, which is expected to benefit mainly from 南京夜生活网 the increase in overall productivity brought by the growth of downstream demand, and fluctuations in raw material prices may also have a certain impact on gross profit margin; in terms of period expense ratio, the company’s expenses during the third quarter of 2019 decreased by 13.2%, basically basically the same, in which the management expense ratio has improved, sales, financial expenses ratio has increased slightly.Overall, driven by the increase in gross profit margin, the company achieved net profit attributable to shareholders of the parent company in Q3 of 2019.6.6 billion, an annual increase of 209%. The expansion of production capacity was advanced in an orderly manner, and the bargaining power of the industrial chain was judged to be improved.As the leader of domestic lithium battery structural components, the company’s market share has been maintained at a high level, and we also demonstrated in the previous company’s in-depth report “The profit inflection point has arrived, and start the road of growth again”.Certain other lithium-ion structural components companies also have obvious financing advantages, which gradually allows the company to continue to expand its production capacity on a large scale, which will further strengthen the company’s market leader position.It can be ground and expanded from the company’s third quarterly financial indicators. The company’s fixed assets at the end of 2019Q3 and the surplus of construction in progress increased by 0 at the end of 2019Q2.6, 0.2 trillion, judging that the company’s current several bases under construction are gradually advancing and landing, and the advantages of production capacity continue to be prominent; accumulation, the company’s accounts receivable at the end of 2019Q3, and bills receivable budget decreased by 0 compared to the end of Q2 2019.8, 0.2 trillion, to a certain extent, confirms our judgment on the company’s bargaining power. With the rise of demand in the industrial chain, the company’s performance increased significantly.The company has established long-term stable strategic cooperative relationships with downstream customers such as CATL, Panasonic, and LG. Looking forward to the follow-up, it is determined that Q4 will increase the downstream electric vehicle production and sales, and the company will gradually increase production and maximize production capacity. The gradual operation will continue to maintain rapid growth.According to the company announcement, the company expects to realize net profit attributable to shareholders of the parent company in 20192.1-2.600 million, a growth of 160% -210% in ten years.Maintaining the previous point of view, the company’s leading companies have been continuously strengthened, and the tolerance of the electric vehicle industry chain has been expanded to maintain rapid growth. At the same time, the domestic production capacity of overseas battery leaders and domestic high-quality companies have accelerated their overseas expansion, which is expected to contribute to incremental performance.It is estimated that the company’s net profit attributable to shareholders of the parent company in 2019 and 20202.3, 3.200 million, corresponding to PE is 27, 19 times.Maintain BUY rating. Risk Warning: 1. The rapid release of capacity has led to a decline in maximum capacity; 2. Product prices are falling rapidly.