Dawn Shares (002838) Third Quarterly Report Review: New Material Volume Is Immediately Optimistic for Enterprise Growth

Dawn Shares (002838) Third Quarterly Report Review: New Material Volume Is Immediately Optimistic for Enterprise Growth
Event: On October 30, 2019, the company announced the 2019 third quarter report: revenue 19 was achieved.9.4 billion, an increase of 148 every year.45%; net profit attributable to mothers1.27 ppm, a 44-year increase of 44.72%; Comments: 1. The company’s performance in the three quarters of 2019 will increase by 44 each year.72%, in line with our expectations. In the first three quarters of 2019, the company achieved operating income19.9.4 billion, a sharp increase of 148 previously.45%, net profit attributable to mother 1.27 ppm, a 44-year increase of 44.72%, which has exceeded last year’s highest performance; of which, in the third quarter of 2019, net profit attributable to mothers was zero.48 ppm, an increase of 0 per year.1.6 billion (+ 50%), an increase of 0 from the previous month.07 billion (+11.63%).The company’s third quarter report for 2019 and single-quarter revenue increased significantly, mainly due to the consolidation of Haier New Materials; the improvement in performance was mainly due to the contribution of Haier’s new materials consolidation (including the rebound in the gross margin of modified plastics) and the increase in TPV sales. 2, TPV volume continues to increase, import substitution, play a leading role At present, the company has TPV production capacity2.2 every year.As an ideal material to replace traditional thermosetting rubber materials, TPV has broad development prospects. The rise of domestic vehicles and the increase in the proportion of models 重庆耍耍网 using TPVs have steadily increased the penetration of TPVs in automobiles. It is estimated that by 2020, the total domestic car sales will be 32 million, corresponding to a total demand of 16 cars for TPV.However, the domestic TPV capacity is insufficient and mainly depends on imports.As the third largest TPV manufacturer in the world and the largest domestic manufacturer, Dawn will further expand the production and sales scale of TPV to form an import substitute.At the beginning of 2020, the company added another 1.1 electrostatic capacity, reaching 3.In terms of 3, further increase market share, give play to leading effects, and enhance profitability. 3. HNBR has been put into production smoothly and has begun to sell gradually; HPIBR used for TPIIR export to promote internal use basically depends on imports. The company 南京夜生活网 replaced the internal blank through the exchange of platform technology. The company put into production 1,000 tons of HNBR on March 26, 2019Trial production has been carried out. Currently, the equipment is operating stably and sales have gradually started.It is expected that the remaining 2000 tons of HNBR production capacity will be put into operation in 2020, and this product will contribute considerable performance. In addition, the company has also established an esterification platform to produce high-end TPUs. At present, the company already has TPU production capacity 1 production, bringing new points of performance growth; TPIIR is a substitute for thermosetting bromobutyl rubber. The application field is medical rubber plugs. The domestic demand is 35 billion, and the demand for raw materials is about 6.At present, the company’s new 2,000-ton TPIIR capacity is sufficient for production conditions. On October 22, 2019, Daun High Materials (Beijing) was registered and the export business started.The remaining 8,000 tons of TPIIR is expected to be put into production by the end of 2020, further improving profitability.Dawn is the first mass-produced TPIIR, and it is worth looking forward to replacing traditional rubber plug materials in the future. 4. The application for convertible bonds has been submitted to the total investment of the Daun Polymer New Material Project of the China Securities Regulatory Commission.600 million, including project investment 3.600 million (planned to use no more than 2 raised funds.US $ 600 million, with a total investment of US $ 100 million for repayment of loans and supplementary working capital (the proposed use of raised funds shall not exceed US $ 100 million). Among them, the implementation entity of Daun Polymer New Material Project is Qingdao Haier New Materials R & D Co., Ltd. (hereinafter referred to as “Haier New Materials”), a wholly-owned subsidiary of Daun Share Holding Co., Ltd. (hereinafter referred to as “haiAccept new materials “).Haier New Material’s existing plant was put into construction in 2001, and it is currently in full production. At the same time, the level of automation is not high, and warehouse turnover has reached expectations. The company plans to construct an annual output of 12 in Jiaozhou Economic and Technological Development Zone of Jiaozhou through the implementation of this project.The implementation of this project will further increase the company’s production capacity of modified plastics, meet the current capacity demand, and meet the company’s future business development needs. At present, the project environmental assessment report has been approved, and the application for convertible bonds has been submitted to the CSRC. 5. The convertible bond raising investment project optimizes the capital structure, reduces financial costs, and improves the company’s profitability. (1) The acquisition of Haier New Materials will increase the company’s financial expenses for the third quarter of 2019. The expansion of the company’s scale also requires supplementary liquidity. (2) Supply exceeds demand and expands the production capacity of modified plastics.Haier New Material’s existing production line is at full load. In addition, there are a large number of new products in high-efficiency engineering plastics and modified plastics, which need to replace new modern production lines. (3) Increase revenue and performance.The project construction period is 12 months.The company expects to achieve a maximum annual profit of 9,882 after the project is completed.190,000 yuan, the project’s financial internal rate of return is about 16.88% (after tax), the payback period is about 6.97 years (excluding construction period). 6, consolidated Qingdao Haier New Materials, opened a new layout of modified plastics in the field of home appliances. 2.5.8 billion shares acquired 80% of Qingdao Haier New Materials and have been consolidated since December 2018.Qingdao Haier New Materials is mainly engaged in engineering plastics, special plastics, plastic composite materials, chemical additives and other businesses. Its downstream customers are companies such as Haier Group. The company’s acquisition of the modified plastic supply system that entered Haier’s home appliance field is expected to form complementary productsTo form a new situation for coordinated development. 7. Investment rating and estimation: It is estimated that the net profit attributable to the mother in 2019/20/21 will be 1.87/2.44/3.30,000 yuan, PE is 31/23/19 times, given a “recommended” rating. 8. Risk warning: Downstream automotive market demand is falling, TPV expansion progress is not up to expectations, new capacity construction is not up to expectations, new capacity contributions are not up to expectations, raw material prices are changing, environmental protection policies are changing, and the economy is down substantially.