Enjie (002812): Better-than-expected acquisition of Jieli strategic integration

Enjie (002812): Better-than-expected acquisition of Jieli strategic integration

Event: The company released the third quarter report of 2019, and the first three quarters achieved operating income21.

100 million, previously +29.

9%; net profit attributable to mother 6.

3 billion, previously +95.

8% (ten years of unified caliber +50.

5%); deduct non-attributed net profit 5.

500 million, previously +252.

8%.

Among them, 2019Q3 operating income7.

3 billion, previously +12.

5%, +0.

9%; net profit attributable to mother 2.

4 ‰, +50 for ten years.

5%, +37.

5%.

Comments: 1, Q3 performance against the trend, Dan Ping’s net profit improved beyond expectations.

The company’s revenue growth was flat from the previous month, mainly due to the industry’s downward trend and expansion of volume growth.

However, the growth rate of net profit has increased significantly, initially 1) the gross profit margin has increased.

The company’s Q3 gross profit margin was 46.

4%, an increase of 4 from the previous quarter.

0pct.

2) The expense ratio has fallen.

Company expenses cost 5.

2%, down 6 from the previous month.

4pct.

We expect the company’s single-ping net profit to be 0 from Q2.

Around 85 yuan / level rose to 1 in Q3.

Around RMB 2 / ping, profitability has been significantly enhanced.

2. The customer structure continued to improve, and overseas expansion increased rapidly.

The company’s three-phase and three-quarter quantitative quantities are around 190 million square meters.

Among them, the number affected by industry fluctuations reached about 40 million 重庆夜生活网 in July, and returned to a higher level in August and September.

The sales increase mainly comes from overseas expansion. It is estimated that the overseas investment will be about 45 million square meters, and the overseas share will increase from about 15% in the first half to about 24%.

Overseas products have higher quality and higher gross margins. Through the continued expansion of overseas battery plants in Q4 and the recovery of domestic new energy vehicles, we expect Q4 to maintain high growth.

3, the acquisition of Jieli down the consideration + cancellation of gambling, highlighting the significance of strategic integration.

In August, the company announced that it plans to acquire Suzhou Jili with a transaction size of 20.

2 trillion, set the performance of gambling (2020/1022 respectively 1/1.

5/2 billion).

The company currently lowers its consideration to 18.01 billion, and cancelled performance gambling to accelerate the integration process.

The quantity of Suzhou Jili 19H1 is 1.

300 million square meters, the domestic wet-dispersed cities account for about 15%, ranking second in the industry.

After the completion of the acquisition, Enjie’s market share will be close to 60%, while further increasing its influence on the market, it will also achieve rapid expansion in disguise.

In addition, Jieli has high-quality consumer battery customer resources. Enjie uses rapid acquisition to save time and costs, and customers expand costs to achieve a comprehensive product layout.

Earnings forecast and rating: As a global leader in the wet-method branch, the company is based on domestic and overseas perspectives.

Due to the better-than-expected results in the third quarter, we expect the company’s net profit attributable to its mother to be 9 in 2019-2021.

05/12.

18/13.

99 ppm, corresponding to 28 PE.

5/21.

2/18.

5. Maintain BUY rating.

Risk reminder: product prices and production capacity fall short of expectations; policies fall short of expectations, etc.