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Enjie (002812): Expansion abroad, strong earnings slightly better than expected

Enjie (002812): Expansion abroad, strong earnings slightly better than expected

Event: Enjie released three quarterly reports and achieved revenue of 21 in the first three quarters.

0.6 million yuan, an increase of 29 in ten years.

重庆耍耍网88%; net profit attributable to mother 6.

32 ppm, an increase of 95 in ten years.


Realize deduction of non-parent net profit5.

530,000 yuan, an increase of 252 in ten years.


  In a single quarter, Q3 achieved revenue of 7.

28 ppm, an increase of 12 in ten years.

51%; realized net profit attributable to mother 2.

43 ppm, an increase of 50 in ten years.

53%; net profit deducted from non-attributed mothers2.

31 ppm, an increase of 82 in ten years.


The overall performance was slightly higher than expected, higher than the forecast range of 2-2.

3.5 billion net profit attributable to mother.

Single business single flat profit increase: According to the three quarterly report, the company’s diversified business net profit from January to September is expected to be 6.


38 ppm, as the actual net profit attributable to mothers in the third quarter slightly exceeded the upper limit of the notice, because the net profit from the expansion of business expanded from January to September was about 6.

3.8 billion.

According to initial estimates, the company’s net profit (excluding non-deduction) was approximately 1 in the first three quarters.

18 yuan / flat, higher than Del 0 in the first half.

98 yuan / flat, of which Q3 is expected to reach 1.

16 yuan / flat, higher than Q1 and Q2.

It is expected that the improvement in profitability will mainly result from the increase in the proportion of overseas supplies and the elimination of the impact of Q2 order changes.

  In terms of gross profit margin, the company’s comprehensive gross profit margin for Q3 reached 46.

41%, an increase of 3 per year.

3 pieces, an increase of 4 pieces from the previous month.

At the same time, due to the severe decline in expenses (mainly management expenses), the company’s net interest rate reached 36.

54%, an increase of 6 percentage points per year, an increase of 9 from the previous quarter.


The domestic wet method market share exceeds 40%, and overseas customers are accelerating development: According to GGII data, the company’s domestic wet method breakthrough market share reached 42 in the first three quarters of 2019.

7%, up from 36% in the previous 18 years, 6pcts.

Overseas, the company has entered the supply chain of LG, Samsung, and Panasonic, especially LG’s steady volume. Q3 replacement overseas supply is expected to increase to 25% -30%.

Next year, through the heavy volume of the European market, the company is expected to simultaneously benefit from the CATL and LG supply chains and maintain rapid sales and performance growth.

The expansion of Suzhou Jili is progressing further: the company also announced a supplementary agreement on the transfer of equity in Suzhou Jili. The latest plan is to allocate 100% of Suzhou Jili for 1.8 billion transferees.

In the first three quarters of 19th, Suzhou Jieli’s domestic wet method market share was 13% (second only to Enjie). After the acquisition, Enjie will take a total of 56% of the market share of the alternative wet method market and further expand its leading edge.In the first half of the year, Suzhou Jili has a length of about 2136 million, but its operation has gradually improved compared to 18 years, and it is expected to turn into profit after replacing non-economic factors.

Geli is a good complement to Enjie in the mid-to-high-end consumer market. The continuous improvement of subsequent operations in turn will gradually contribute to profits.

The traditional business is generally stable: We expect the traditional business to return to its parent net profit of approximately zero in the first three quarters.

5.7 billion, compared with 0 in the first three quarters of 18

56 billion was basically flat.

Investment suggestion: Regardless of the impact of the acquisition of Suzhou Jili, we expect the company’s revenue growth rate to be 29 to 19 years.

5%, 46.

9%, 41.

3%, net profit growth was 55.

8%, 47.

7%, 33.

6%, EPS are 1 respectively.

00, 1.

48, 1.

98; Maintain Buy-A investment rating and raise TP to 40.

00 yuan.

Risks: Lower-than-expected downstream demand, lower-than-expected capacity release, and intensified competition in the industry leading to lower-than-expected price drops.