Xiamen Tungsten (600549): Lithium-ion materials business bottoms out

Xiamen Tungsten (600549): Lithium-ion materials business bottoms out

Lithium-ion materials business: bottoming out and picking up The company’s battery materials include lithium-ion materials and hydrogen storage alloys, of which the capacity of lithium-ion materials is 4.

6 trace amounts (including ternary, lithium cobaltate, lithium manganate and lithium iron phosphate, etc.).

18 and 19 Q1 lithium ion materials sales were 2 respectively.

5 and 0.

The average value is 7 and the average quality is 32.

5 and 230,000 yuan / ton, 19 years of H1 battery materials realized revenue and gross profit of 3.4 billion 重庆耍耍网 and 2 respectively.

63 trillion, of which Xiamen Tungsten New Energy realized revenue and net profit of 33 trillion and -0, respectively.

25 million US dollars, the company’s downstream customers are long-term domestic large-scale companies with high customer stickiness. The company’s 19 year H1 sales continued to increase, mainly because the company’s lithium ion material main raw material prices fell to drive product prices down. Q3 cobaltPrices have rebounded, and battery materials business has achieved profitability. In the future, the supply of cobalt industry will improve and demand will increase. The price of cobalt is expected to continue to rebound. It is expected that the company’s lithium ion material prices will rise as the cobalt price rises, and the lithium ion material business is expected to bottom out and rebound.

Tungsten and molybdenum business: Tungsten prices are expected to pick up and profitability will improve. The company’s annual output of tungsten concentrates in three mines in 2018 was 1.

2 Nominal (Luoyang Yulu shares account for 60%), second only to Minmetals.

Affected by the decline in tungsten prices, the tungsten and molybdenum sector in the first three quarters of 2019 has gradually realized profit growth2.

10,000 yuan, a year-on-year decrease of 76%.

The total demand for tungsten in 2019 is mainly due to the decrease in demand for cemented carbide rods (the downstream demand for bars is mainly automotive and consumer electronics). The current trend of automotive trends benefits from the marginal improvement in 5G consumer electronics demand.Hope to pick up.

As the leader of the domestic tungsten industry, the company’s tungsten molybdenum business has significantly improved its profitability.

The investment proposal estimates that the company’s EPS in 19-21 will be 0.

11 yuan, 0.

27 yuan and 0.

46 yuan, corresponding to the current sustainable PE is 114.

6 times, 49.

1x and 28.

Three times, considering the company’s industry level, the company is given a “Buy” rating with a six-month target price of 16.

97 yuan.