Yunhai Metal (002182) 2018 Annual Report Comments: Magnesium Price Rising Results Better

Yunhai Metal (002182) 2018 Annual Report Comments: Magnesium Price Rising Results Better

Event: In 2018, the company gradually realized revenue of 5.1 billion US dollars, increasing by 3 every year.

5%, to achieve net profit attributable to mother 3.

200 million, an annual increase of 112.

83%, net profit after deducting non-return to mother 2.

1 ‰, an increase of 91 per year.

7%.

In the fourth quarter alone, the company achieved revenue of 12.

9 ‰, an average of two in ten years.

9%, achieve net profit attributable to mother 0.

8.2 billion US dollars, an increase of 310% a year, net profit after deduction is 0.

8.2 billion, an increase of 357% previously.

Comments: The main reason for the increase in net income attributable to mothers in 2018 was (1) the rise in magnesium prices. The average price of magnesium ingots in 2018 was 16,233 yuan / ton, an increase of 10 from the 2017 average price of 14,733 yuan / ton.

1%; As of December 28, 2018, the price of main raw material ferrosilicon was 5,750 yuan / ton, a decrease of 25 from the beginning of the year.

8%.

In 2018, the company’s magnesium alloy products gross margin was 17.

98%, an increase of 3 units over the same period last year.

2) Receiving compensation for the relocation of Suzhou Yunhai totals about 1.

700 million.

Baosteel Metal takes stock, accelerates the development of magnesium components. In December 2018, Baosteel Metal took a stake in Yunhai Metal, with a 8% stake.

As the company’s strategic shareholder, Baosteel Metal is of great significance to the development of Yunhai Metal’s future development of automotive magnesium components.

Baosteel’s cold-rolled automotive sheet has maintained a leading position in the high-end market, with a 无锡夜网论坛 market share of over 50%. Automotive steel sheets have passed QS9000 certification standards of GM, Ford, Chrysler and other large automotive plants.

In recent years, Yunhai Metal has been laying out the magnesium alloy parts application market (a joint venture investing in the construction and production of 1 million automotive magnesium wheels; a value-added project in Yihai Yunhai to set up a light alloy precision die casting project; and investing in India to build 1 million die castingsAnd supporting magnesium alloy recycling projects), but relying on its own company to promote vulnerability.

Coming soon, Baosteel Metal’s shareholding, we believe that it will accelerate the development progress of Yunhai Metal’s future automotive magnesium components, as well as broaden downstream customers.

Profit forecast and rating: Based on the continued improvement of the company’s overall operations, we maintain the company’s profit forecast.
In 2020, the EPS will be 0.

75 yuan, 1.

05 yuan, plus EPS forecast 1 in 2021.

14 yuan.

Maintain “Buy” rating.

Risk warning: Magnesium price growth exceeds expectations.