Grammy (002340) review of major events: quality orders continue to optimize customer resources in the next city

Grammy (002340) review of major events: quality orders continue to optimize customer resources in the next city

Core view The company signed a three-year agreement with Rongbai Technology.

The 93-ton ternary NCM precursor supply agreement is expected to bring 3 billion revenues to the company, accelerate the release of production capacity, and achieve a rich company performance.

The company’s customer resources have been continuously optimized, and the ternary NCM + NCA precursor products have both entered the world’s first-class high-quality battery company supply chain. The industrial chain region has continued to improve, and the global market competitiveness has increased, ushering in continued high-speed growth.

Sign 2.

93 tons of ternary precursor materials purchase agreement, strategic customers add another member.

The company announced on March 15, a multi-year strategic procurement agreement with Rongbai Technology.

The agreement stipulates that the company establishes a special line to supply Rongbai Technology with three yuan NCM523, NCM622 series product precursor materials or other products required by the market.

The supply quantity is tentatively set to 0 in 2019-2021.

93/1/1 budget, fully delivered monthly, totaling 2 over three years.

93.

If Rongji’s skills are fulfilled according to volume, it will bring the company nearly 3 billion revenues.

Consolidate the market share of high nickel ternary precursors and accelerate the release of ternary precursor production capacity.

The newly added strategic customer Rongbai Technology is the first domestic company to mass-produce NCM811 ternary materials. The customers include LGC, Samsung SDI, Ningde Times, BYD, Lishen Battery, BAK Battery, Everlite Lithium Energy, Fu Energy Technology,Gateway and other well-known domestic and foreign power battery companies.

The agreement company will support the NCM523 and 622 precursors, and the supporting products are expected to expand to the NCM811 precursors to further consolidate market share.

The company currently has a ternary precursor production capacity of 6 instead of 5.

5 Nominal NCM + 0.

5 announcement NCA).

The company plans to have a precursor production capacity of 10 nominal by 2020.

Supply Rongbai Technology will comprehensively promote the company’s ternary precursor production capacity release.

Customer resources are continuously optimized, and the level of the industrial chain is continuously improved.

The company continuously develops high-quality customer resources. In November 2017, it established a joint venture with Green Nippon, a joint venture with Ningde Times holding subsidiary Bangpu, to supply NCM ternary precursors and cut into the Ningde Era supply chain.

In December 2018, the company and ECOPRO, Samsung’s core supplier of SDI insert materials, shortened their orders for 17 years to high nickel NCA ternary precursors and cut into the Samsung SDI supply chain.

The company’s ternary NCM + NCA precursor products have both entered the supply chain of the world’s first-class high-quality battery companies. The industrial chain region has continued to improve, and the global market competitiveness has increased, welcoming continued high-speed growth.

Risk factors: The production capacity is less than expected, the risk of further decline in cobalt prices, and the advancement of cooperation is less than expected.

Investment proposal: The company signed a three-year contract with Rongbai Technology.

The 93-ton ternary NCM precursor supply agreement, if it can be fulfilled in accordance with the volume, is expected to bring 3 billion revenues to the company, accelerate the release of production capacity, and achieve a rich company performance.

The company’s customer resources have been continuously optimized, and the ternary NCM + NCA precursor products have both entered the world’s first-class high-quality battery company supply chain. The industrial chain region has continued to improve, and the global market competitiveness has increased, ushering in continued high-speed growth.

Adjust the company’s EPS forecast for 重庆耍耍网 2018 to 2020 to 0 according to the 2018 annual results report.

17/0.

25/0.

35 yuan (previous forecast was 0.

19/0.

25/0.

34 yuan), giving the company a target price of 7.

50 yuan (corresponding to 30 times PE in 2019), maintain “Buy” rating.