Bowie Alloy (601137): High-end strip business with strong performance in line with expectations

Bowie Alloy (601137): High-end strip business with strong performance in line with expectations has strong growth

The company announced its semi-annual report for 2019, and its performance was in line with expectations.

The company achieved operating income of approximately 33 in 2019H1.

4.6 billion, net profit attributable to mother is about 2.

07 million, after the retrospective adjustment, respectively increased by -0.

76%, 10.


In May 2019, the company completed the acquisition of 100% equity of Broadtech, and consolidated the report period, bringing about 3921 to 2019H1.

The consolidated profit of 30,000, if deducted from the consolidated factor, will cause the business to realize a net profit attributable to the mother of approximately 97.18 million yuan in each quarter of 2019Q2, each time +1.

09%, +38.

4%, the performance was basically in line with expectations.

The alloy materials business has grown steadily, and the strip business has performed well.

The 2019H1 alloy materials business achieved an operating income of approximately 21.

7 ‰, at least -3.

54%, gross margin is 15.

7%, an increase of 2 per year.

2 units, net profit is about 1.

35 trillion, ten years +10.


Among them, the net profit of copper sheet business in 2019H1 was 44.88 million yuan, +34 a year.

5%, the performance is dazzling. We believe that this is due to the release of production capacity of high value-added products such as C7025, and the proportion of the structure continues to increase.

Broadtech has achieved consolidation, and the precision filament business has grown rapidly.

In the first half of 2019, Bodetech’s precision filament business achieved operating income of approximately 6.

23 ppm, +13 a year.

28%, gross margin is as high as 22.

1%, net profit is about 44.38 million yuan, +55 for the whole year.

twenty four%.

First, the demand outlook for high-end precision manufacturing products has brought better operating income growth.

Second, benefiting from the previous business’s R & D, technology, brand and management synergies with Beckenhof, Germany, the sales of high value-added products increased rapidly, and the sales of high-end products overseas increased significantly.The net profit margin of the Doosan business was 5 in 2018.

2% to 7 in 2019H1.


The international new energy business is slightly dragged down, and it is expected to gradually improve in the future.

2019H1 photovoltaic module business realized operating income of about 5.

25 trillion, +2 for ten years.

83%, net profit is about 3278.

680,000 yuan, at least -20.


The main reason is that the company has long-term long-term price concessions with major customers, leading to a decline in profits.
At present, the execution of the long order is basically completed, and the generator business has been connected to the grid for power generation.
To meet the wave of domestic substitution of 5G and high-end materials, the development of high-end copper alloys is just in time.

The company keeps an eye on the development of 5G communications, semiconductor chips, smart terminals and equipment, new energy vehicles, etc. High-end copper strip products have become the focus of development.

The added value of top-end high-end copper plate and strip products facing 2 is still increasing, 1.

8 The initial supplementary project has passed product verification and is waiting for heavy volume, followed by 5 exception special alloy strip projects also began infrastructure construction in 2018, and the project’s key equipment has been successively signed contracts.

In the 5G era, higher quality and quantity requirements are imposed on alloy materials. The company’s high-end alloy production capacity follows the wave of the times and is expected to provide continuous growth momentum for the company’s future development.

Investment suggestion: Buy-A investment rating, maintain 6-month target price of 12.

6 yuan.

We estimate the company’s net profit attributable to the parent to be 4 in 2019-2021.

2, 5.

3, 6.

4 trillion, the corresponding EPS is 0.

61, 0.

76, 0.

92 yuan, maintaining the company’s 6-month 上海夜网论坛 target price of 12.

6 yuan, corresponding to 21x PE in 2019.

Risk reminders: 1) Less than expected release of high-end copper strip capacity; 2) Less than expected 5G communication equipment promotion; 3) Exceeded expectations of domestic and foreign photovoltaic policies