Business more flowering this year, the performance back to the track

- Feb 24, 2017-

Business more flowering, material technology in 2017 to return to the rising track.

The company 16 annual revenue and profit decline, mainly due to the wind power industry in 2015 by the policy impact of the rush, ahead of overdraft part of the market demand, the company's wind power blade industry performance decreased year on year; the same time, due to the continued downturn in the cylinder industry , The company cylinder industry overcapacity, the company for the purpose of strategic contraction purposes, asset impairment provision of 137 million yuan.

The company's first quarter of 2017 performance year-on-year substantial growth, the main reasons include: 1) fiberglass business market demand has increased, while the company in 2016 to raise funds to invest in the construction of two hundred thousand tons of kiln production lines have been completed and put into production; 3) the company's filter material business to actively develop the electricity market, the performance increased significantly over the same period last year; 4) the company in 2016 on the cylinder industry for internal assets business integration (3) the company's filter material business to develop the power market, , The first quarter results significantly reduced losses.

Lithium battery separator is expected to open up new space for profit growth

The company 15 years to seize the opportunity to develop new energy vehicles, the strategic layout of the upstream lithium battery diaphragm material. At present, the company has three production capacity of 27 million square meters in Nanjing production line, a production line has done technical transformation, A rate of up to 60% or more, and has ATL, BYD, Panasonic and other first-line battery manufacturers supply. In addition, the company is building a new 240 million square meters of high-end lithium battery separator production line, of which a 120 million square meters diaphragm will be put into operation in the second half of this year, two 120 million square meters diaphragm will be put into operation by the end of this year or early 18th, the new production lines are using European technology, A rate of up to 80% or more (two total of 240 million square meters for the A product capacity).

Profit forecast and investment rating

According to the principle of prudence, we expect the company 2017, 2018 operating income will reach 10.1 billion yuan, 11.2 billion yuan; attributable to the parent company's net profit of 8.47.942 billion yuan. According to the total share capital of 807 million, EPS is 1.05 yuan, 1.17 yuan. The current share price corresponds to 2017, 2018 PE is 18.70,16.78 times, according to the company in recent years the average dynamic 40 times PE, to maintain the "buy" rating.