Tong Tailai (603659): High revenue growth pressure on gross profit margin is expected to improve quarter by quarter in the later period

Tong Tailai (603659): High revenue growth pressure on gross profit margin is expected to improve quarter by quarter in the later period

Event: Chen Tailai announced the first quarter of 2019 report, and achieved operating income of 10 in the first quarter of 2019.

29 ppm, an increase of 79 in ten years.

52%; net profit attributable to mothers1.

29 ppm, an increase of 0 in ten years.

51%; net profit deduction for non-attributed mothers1.

14 ‰, an increase of 9 in ten years.

78%.

Opinions: We believe that the primary significance of the decline in comprehensive gross profit margin is: 1) the decline in the price of raw materials; 2) the price increase of needle coke for raw materials;

The company’s growth in operating income in the first quarter of 2019 was significantly higher than the increase in net profit after deducting non-attribution, with a combined gross profit margin of 26.

51%, a reduction of more than 佛山桑拿网 10 per year.

Net cash flow from operating activities was -1.

270,000 yuan, compared with 0 in the first quarter of 2018.

14 billion dollars fell 1018.

97% is basically because the company has temporary bills that need to be settled in cash, which was caused by the company’s lock on a large number of raw material orders when the price of raw materials continued to rise last year.

Asset impairment losses increase each year: Asset impairment losses of 923 in Q1 2019.

210,000 yuan, -259 compared with the first quarter of 2018.

26 trillion increased by 456.

10%, the first is the company’s provision for bad debt growth.

The period rate was effectively controlled: the period rate of 2019Q1 was 12.

17%, compared with 14 in the first quarter of 2018.

11%, a decrease of 1 per year.

There are 94 single ones, in addition to the slight increase in the financial expense ratio, the sales expense ratio, the management expense ratio and the research and development expense ratio have decreased by 0.

9, 1.

39, 0.

14 units.

The reason for the increase in the financial expense ratio is that the company raised funds to expand its capacity through bank borrowings, financial leasing and other methods.

The graphitization capacity of Inner Mongolia Zhuozi Park 5 is gradually shifted to production, which can alleviate the pressure of the company’s insufficient graphitization processing capacity and increase costs. It is expected that the original effect will be significantly reduced; in 2019, Liyang will replace the polyamide capacity 2 and Ningde will supplement the film capacity2.

400 million square meters.

Investment suggestion: As the company ‘s production capacity is gradually released, and its performance is expected to improve quarter by quarter, we will return the company’s net profit to 7, from 2019 to 2020.

8 billion, 10.

400 million is raised to 7.

9 billion, 11.

400 million, corresponding to 28X and 19.

54 X PE with “Buy” rating.

Risk Warning: Downstream demand is not up to expectations, production capacity is not up to expectations, and product prices exceed expectations.