Shenzhen Rising Star (603978) Quarterly Report Comments: Q3 Single Quarter Less Than Expected Not to Change Long-Term Growth Trend

Shenzhen Rising Star (603978) Quarterly Report Comments: Q3 Single Quarter Less Than Expected Not to Change Long-Term Growth Trend

The company released the third quarter report of 2019, reporting a series of realized revenue7.

77 trillion, the same minus 0.

36%; net profit attributable to mother 0.

7.6 billion, down by 6.

92%; net profit after deduction is 0.

68 trillion, with an increase of 0.

07%.

Q3 quarter revenue 2.

55 trillion, the same minus 12.

79%; net profit attributable to mother 0.

180,000 yuan, with a decrease of 34.

22%; net profit after deduction to non-mother 0.

1.6 billion, a decrease of 41.

66%.

Q3 quarter results were slightly lower than market expectations.

The sales of refiners decreased, or the Q3 quarter was lower than expected due to the company’s Q3 quarter revenue.

55 ppm, a ten-year average of 12.

79%; operating costs 2.

8,000 yuan, the ten-year average of 11.

86%.

In the same period, China’s aluminum production was 1成都桑拿网,293.

3 Initially, there was a slight increase of 3 a year.

32%, cyclic oxide 1.

93%; the aluminum outlet 139 is inserted, inserted and 10 from the ring moving average.

32%.

In the context of the weak macro economy and the background of Sino-US trade friction, the prosperity of the aluminum processing industry has decreased. The company’s main aluminum particle size refiner, as an aluminum processing additive, has also been affected, which has led to an increase in sales of the refiner, or the company’s Q3 quarterThe main cause of poorer-than-expected performance.

The company and the electrolytic aluminum industry achieve a win-win situation. Potassium tetrafluoroaluminate promotes accelerated development. The potassium tetrafluoroaluminate developed by the company promotes the partial replacement of aluminum fluoride (electrolytic aluminum additive).

In the production of electrolytic aluminum, 20 kg / ton of aluminum fluoride is generally added. Now 10 kg / ton of aluminum fluoride + 10 kg / ton of potassium fluoroaluminate is mixed, which can be used without increasing costs (the price is equivalent to aluminum fluoride)), Save 500 degrees of electricity, according to 0 degrees of electricity.

Calculated at 31 yuan / degree, it can increase the profit for electrolytic aluminum enterprises by 155 yuan / ton.

For electrolytic aluminum enterprises, the use of potassium tetrafluoroaluminate to increase profits is considerable, so potassium tetrafluoroaluminate achieves a win-win situation between the company and the electrolytic aluminum industry, and its application in the electrolytic aluminum industry promotes accelerated promotion.

The growth space opens, and the company will usher in a new flyby. Following the initialisation of China’s 3648 in 2018, the global output of 6434 injected electrolytic aluminum is assumed. Adding 10 kg / ton injection per ton of electrolytic aluminum, the market space will reach China36.

5 announcements, 64 worldwide.

Three.

Judging from the current sales of potassium fluoroaluminate products, the promotion effect is remarkable. As a company with various barriers such as raw materials, equipment, and patents, the company will take advantage of the development of the industry and usher in a new leap forward.

Profit forecast and rating: As the leader in the aluminum particle refiner industry, the company’s continuous expansion of product scale and the accelerated promotion of by-product potassium tetrafluoroaluminate, the net profit is expected to be 2 in 2019-2021.

01/3.

50/4.

470,000 yuan, the EPS is 1.26/2.

19/2.

80 yuan / share, corresponding to the closing price of PE on October 29, 2019, 22/13 / 10X, respectively, maintaining the “overweight” level.

Risk reminder: the company ‘s product capacity release is less than expected, and the new product potassium tetrafluoroaluminate is not progressing as expected