Guosanlipu (002876) 2018 Annual Report and Fixed Increase Announcement Comments: Revenue Growth Meets Expectations Fixed Increase Starts Ultra-wide Production Line

Guosanlipu (002876) 2018 Annual Report and Fixed Increase Announcement Comments: Revenue Growth Meets Expectations Fixed Increase Starts Ultra-wide Production Line

Event: The company released its 2018 annual report, and the company achieved revenue in 20188.

8.3 billion; net profit attributable to mother

28 ppm; the company intends to distribute a cash dividend of RMB 0 for every 10 shares.

40 yuan (including tax), a total of 0.

US $ 0.3 billion, with capitalization of 3 shares for every 10 shares, totaling 0.

2.4 billion shares.

The company intends to raise funds through non-public offering of no more than 1.1 billion expenditures on ultra-wide TFT-LCD polarizer production line projects.

The chairman promised to subscribe in cash, with a subscription amount of not less than 40 million yuan.

Opinion: Revenue growth is in line with expectations, and exchange rates affect profits.

In 2018, the company realized revenue 8.

830,000 yuan, a year-on-year increase of +7.

99%; net profit attributable to mother 0.

280,000 yuan, -66.

31%.

Affected by the Hefei plant’s expansion expansion preparations, management costs rose to zero.

340,000 yuan, a year-on-year increase of +17.

28%.

At the same time, due to the continuous depreciation of the renminbi, the exchange loss gains have actually increased, and financial expenses have risen to zero.

44 billion, a year-on-year increase of +48.

44%.

Revenue of TFT polarizer products rose to 7.

38 billion, a year-on-year increase of +11.

38%, the capacity climbing situation is in line with expectations.

At the same time, with the volume of large-size polarizer products, the company’s TFT polarizer product structure adjustment drives the gross profit margin of TFT polarizer products to replace.

76%.

The expansion of production capacity is in resonance with the expansion of customers. From the perspective of production capacity, the company has expanded the construction of wide-angle polarizers since 2011. It has accumulated rich experience in the construction of large-size polarizers, and then introduced new projects intensively.Enter the harvest period.

The 1490mm production line of the first phase of the Hefei project entered mass production in the second half of 2018 and is expected to be fully produced in the first half of 2019.

The first phase of the 1330mm production line of the Hefei project started to ramp up in the second half of 19 years. The 1490mm production line of the Longgang project is expected to be ready for use in the middle of 20 years.

At present, Hefei also has the second-phase ultra-wide polarizer project in Hefei.

The company entered a stage of continuous growth in production capacity.

From the client’s perspective, in the second half of 2018, the company’s Hefei plant passed the BOE audit and began to supply BOE.

The company’s verification by BOE means that the company’s large-scale product specifications have reached a higher level of similar products. It is expected that the introduction of other manufacturers will gradually advance, and new customers will enter the mass delivery stage in the first half of 2019.

The fixed-increasing new wide-line production line is launched, with a capacity of 30 million to ensure long-term growth. The 2500mm production line started this time has a significant advantage over the existing production line in large-size cutting and cutting, and is more in line with the current LCD panel production line.development 苏州夜网论坛 trend.

The company can supplement the economical production capacity of polarizers for 65-inch-105-inch LCD panels, and it can also obtain higher cutting utilization rates for polarizers for 43-65-inch LCD panels than existing production lines.

The new production line is expected to have a construction period of 30 months. After its completion, the total production capacity will nearly double, which can effectively improve the company’s bargaining power for upstream and downstream.

The chairman’s commitment to subscribe demonstrated his full confidence in the company’s development.

Investment advice and profit forecast The rapid growth of domestic manufacturers of upstream LCD panels has promoted the accelerated localization of upstream materials. The boom of LCD panel polarizers has rebounded. As the leader of domestic polarizers, the company has released its preliminary 杭州夜网论坛 layout and ushered in a period of rapid development.

It is expected that the company will realize net profit attributable to mothers in 2019-2021.08, 1.

68, 2.

4.1 billion yuan, corresponding to EPS 1.

35, 2.

10, 3.

01, corresponding to PE 31, 20, 14 times. Maintain the company’s “Buy” rating and target price of 58 yuan.

Risks indicate that the downstream manufacturers’ expansion of production volume is less than expected, and the estimated incremental fluctuations; the progress of production capacity climbing is gradually expected.