Cangzhou Pearl (002108): Affected by sluggish sales of BOPA film and lithium battery replacement, first-half performance was worse than expected

Cangzhou Pearl (002108): Affected by sluggish sales of BOPA film and lithium battery replacement, first-half performance was worse than expected

The first half of 2019 performance was lower than our expected first half of 2019 results: revenue13.

76 trillion, a year-on-year decrease of 8% and a month-on-month decrease of 24.

8%; net profit attributable to mother 0.

970,000 yuan, corresponding to a profit of 0.

07 yuan, a decrease of 21 per year.

5%, a decrease of 44 from the previous month.

5%, lower than our expectations, was mainly dragged down by the drop in 南京夜网论坛volume and price of BOPA films and the accumulation of lithium batteries.

The company’s three businesses, PE pipe plastic products, BOPA film products, and lithium-ion battery replacement products achieved revenue8.



7 trillion, down 5 compared with the same period last year.

5% / 17.

4% / 56.


Development trend The expansion of new capacity of lithium batteries is gradually climbing, and the short-term cost is high, which results in loss of profit.

With the improvement of the industry development situation brought about by the gradual decline of the state subsidy policy, the company’s production and sales of lithium battery replacement products have fallen from the same period of the previous year, and the market price has gradually decreased, and the revenue has decreased by 57%.

The subsidiary “Cangzhou Dialysis Technology”, which started construction in October 2017, began to produce “50 million square meters of dry-process lithium-ion battery separator projects” in April this year. At present, the production capacity is still climbing, resulting in a relatively low production cost.The gross profit of the sector is expected to be RMB 31.23 million.

In the short term, the performance of the lithium battery sector is still under pressure. We believe that through the stable release of capacity and market development in the future, performance is expected to stabilize.

The volume and price of BOPA film both fell, but the gross profit margin decreased slightly through customer development and cost control.

At present, the mainstream price in the BOPA market is 21,750 yuan / ton, a decrease of 32% compared with the same period of the previous year. However, the company actively explores the international market, develops new customers to achieve performance and balance production and sales, and the revenue of the BOPA segment is only down 17.

At the same time, the company strictly controlled costs, and the gross profit margin level dropped slightly.

73ppt, short-term performance under pressure.

Sales of PE pipe products increased slightly, and gross profit improved.

At the beginning of 2018, the company increased the capacity of PE pipeline products1.

5Every year, it is released steadily this year, and the sales volume increases, but the price decreases slightly.

At the same time, in terms of pipes and fittings, the company’s BSI certification has been carried out, and the overseas market has developed smoothly, further increasing market share, consolidating the company’s advantages and expanding, and improving gross profit margin has brought stable performance.

Earnings Forecast and Estimates Due to the sluggish sales of BOPA film and lithium battery segment, we cut our net profit for 2019/202026.

3% / 12.

4% to 2.


70 ppm, currently sustainable corresponding to 2019/202023.

2 times / 18.

0 times price-earnings ratio.

Maintain Neutral rating and lower target price by 11.

1% to 4.

00 yuan, corresponding to 27.

0 times 2019 P / E ratio and 21.

0 times 2020 price-earnings ratio, compared with the recent merger of 16.6% upside.

The prices of risk products have risen sharply, and downstream demand has weakened, and it is estimated that the center has broken.