Tianqi Shares (002009) Annual Report Comments: Growth in Auto Automation Equipment Orders Increased Operating Net Cash Flows Recovered and Surpassed Long-term Net Profits Significantly

Tianqi Shares (002009) Annual Report Comments: Growth in Auto Automation Equipment Orders Increased Operating Net Cash Flows Recovered and Surpassed Long-term Net Profits Significantly

Event: The company released its 2018 annual report today, reporting that the combined company achieved revenue of US $ 3.5 billion, an increase of 42% year-on-year, and net profit attributable to mothers1.

38 ‰, a 63% increase over ten years, net of non-net profit1.

1.7 billion, an increase of 130% in ten years.

Comments: 1.

Orders for automotive automation lines increased significantly.

In 2018, the company’s automotive automation equipment business has a new ten-year order.

3.3 billion, an annual increase of 50%, of which new energy vehicle project orders5.

600 million.

The company’s auto automation equipment orders are growing rapidly, and demand mainly comes from several aspects. One is that traditional car companies will launch new models to stimulate consumption when they are sold, and the demand for internal production line transformation is the second.Demand has also brought new orders to the company.

It is expected that the growth of the company’s automotive 杭州夜网 automation business will continue.

2.

The company successfully broke through overseas markets.

The company has now become a global supplier to Nissan, Renault, Peugeot, Volkswagen, BMW, Mazda and other car companies, and successfully broke through 4 in March 2019.

.

With 200 million US dollars of overseas orders, the company has great potential in overseas markets in the future.

3.

The company’s cash flow situation has actually improved and is far higher than higher net profit.

As of the end of 18 years, the company’s operating net cash flow was 3.

650,000 yuan, a significant improvement of 29.95 million yuan in 17 years.

Although the single-quarter profit in the fourth quarter was negative, revenue increased by 15% month-on-month, and cash flow in the single quarter improved significantly to 3.

600 million.

4.
In-depth layout of scrap car recycling and dismantling and power battery recycling areas, optimistic about future industry development.

With the State Council ‘s resolution this year to adopt the new “Administrative Measures for the Recycling of Scrap Vehicles (Draft)”, the waste vehicle recycling and disassembly industry will usher in spring. The use of market mechanisms to promote the development of the remanufacturing industry will obviously benefit from recycling, disassembly, and remanufacturingTianqi shares of industrial layout.

In fact, the number of domestic new energy vehicles continues to increase, the power battery recycling industry has entered a golden period, and the company ‘s investment in Jintaige ‘s recycling scale is among the top three in the industry, which will generate revenue in the future.

Investment recommendations and grades: Estimated net profit for 2019-2021 is 2.

5.1 billion, 3.

2.6 billion and 4.

24 billion, P / E ratios are 16 times, 13 times, and 10 times.

Maintain “Buy” rating.

Risk warning: New energy vehicle companies’ expansion does not meet expectations, and company orders fail to meet expectations.