Baotai (600456): Performance maintained high growth and increased production

Baotai (600456): Performance maintained high growth and increased production

Events: (1) The company released the third quarter report of 2019, and (2) the company announced a targeted additional issue plan.

Investment Highlights: Revenue growth in the first three quarters was high, and the third quarter was weaker.

In the first three quarters of 2019, the company achieved revenue of 32.

50,000 yuan, an increase of 24 in ten years.

37%; net profit attributable to shareholders of the parent company1.

7 ‰, an increase of 75 in ten years.

67%; net profit attributable to shareholders of the parent company after deduction.

5.9 billion, an annual increase of 82.

72%.

The first three quarters of the budget revenue is zero.

4 yuan.

In the third quarter of 2019, the company achieved revenue of 12.

4 ppm, an increase of 24 in ten years.

2%; net profit attributable to shareholders of the parent company is 0.

600 million, down 5 every year.

16%; net profit attributable to shareholders of the parent company after deduction of 0.

5.8 billion, down 6 every year.

twenty three%.

The weaker third quarter results were mainly due to operating costs (+26.

07%), financial expenses (+43.

35%), management expenses (+17.

16%) and R & D expenses (+15.

18%) the impact of rising amplitude constraints.

The company’s production and sales volume maintained a high growth momentum, with a large number of 武汉夜网论坛 orders.

In the first three quarters of 2019, the company’s titanium product output was 17,520.

02 tons, an increase of 69 in ten years.

72%; sales of titanium products were 17,376.

28 tons, an increase of 72 in ten years.

91%.

At the same time, the company’s contract default income increased by 54.

59% also shows that the company has more orders in hand.

The company plans to raise 21 trillion capital to expand the production capacity of high-end titanium.

On October 17th, the company issued an announcement on the plan to increase the plan. It plans to issue no more than 86,053,140 shares (20% of the total share capital before the issuance), and plans to raise 2.1 billion yuan, 6 of which.

In addition to the $ 1 billion supplementary working capital, other funds will be used for three major projects: ① high-quality titanium ingots, pipes, and profiles production line construction project (construction period 2 years), ② aerospace-grade wide titanium alloy sheet, with foil constructionProject (construction period 1.

5 years), ③ Testing, inspection center and scientific research pilot platform construction project.

After the project ① is put into operation, it will increase the total capacity of titanium and titanium ingots by 10,000 tons per year, the production capacity of titanium alloy pipes by 290 tons, and the production capacity of titanium alloy profiles by 100 tons;The production capacity of foil is 500 tons.

After the mass production of investment projects, the company’s overall production capacity will increase by about 50%.

The company’s production technology and product quality are at the leading level.The company has advanced and complete production processes such as sponge titanium preparation, ingot smelting, precision casting, forging forging, bar and wire production, plate production, strip production, seamless pipe production, welded pipe production, raw material processing, key production processes and coreThe technology is mainly developed and developed through years of independent research and development.

The company has obtained weapons and equipment research and production licenses, and has passed multiple (GJB9001 standard, AS / EN9100C standard aerospace quality system, ISO10012 standard measurement management system, etc.) certifications; passed European Union pressure equipment PED certification, NADCAP special process certification andRecognized by the German TV system; completed NORSOK product certification; passed the quality system and product certifications of internationally renowned companies such as Boeing, Goodrich, Bombardier of Canada, Airbus, Snecma, etc.The main application fields are passes.

The demand for domestic aerospace titanium materials is promising.

In aviation, titanium is an indispensable structural material for modern aircraft.

The U.S. military fighter aircraft’s F / A-22 titanium alloy consumption amounted to 41%, and the earlier 1976 F-16 fighter aircraft increased by 2%; the civil aircraft Boeing 787 single aircraft used 15% titanium.

In the short term, traditional aviation titanium materials mainly replace the domestic military aircraft field, and gradually the large domestically produced aircraft C919 will be gradually commercialized and mass-produced. The amount of titanium materials for military and civilian aircraft will gradually increase.

In the field of aerospace, after the acceleration of the moon landing project and the exploration of Mars, the global networking of Beidou navigation system Beidou satellite navigation system is intensified. The domestic private commercial space is booming, and the amount of titanium used in aerospace will continue to increase.

Investment advice and profit forecast: It is expected that the company’s fully diluted EPS for 2019-2021 will be 0.

46 yuan, 0.

52 yuan and 0.

59 yuan, according to the closing price of 22 on October 17.

8 yuan calculation, the corresponding PE is 51.

4 times, 45.

3 times and 39.

9 times.

Considering the company’s continuous growth in production and sales, the production capacity of high-end titanium materials will continue to be released in the future, and the demand outlook for high-end titanium materials is more optimistic. The company will continue to give the company an “overweight” rating.

Risk reminders: (1) the company’s project progress is less than expected; (2) environmental shutdown shuts down production capacity and resumes production leading to the expansion of industry supply