A mixed picture of future growth and near term margin pressure; Hold
国轩高科(002074)
Optimistic on the long term outlook despite short term hiccup
Guoxuan High-tech delivered flat YoY sales revenue and -17% YoY NPAT dropin 1H17, which was attributed to 1) uninspiring downstream battery demand,led by EV policy change, 2) batteries contract ASP decline, and 3) upstream rawmaterial price hike. Extrapolated from the company’s 9M17 bottomline guidance,we believe that margin pressure will likely remain for the coming quarter. Inthe long run, Guoxuan is planning to strengthen its market-leading position todeliver high quality product with scale, and we think the company will still be thebeneficiary of the rising EV tide in China. In our view, the current share price haslargely factored in the expected strong growth in the future; maintain Hold.
- 08-23 Polymeric MDI distribution ASP hiked by 21%; reiterate Buy
- 11-06 2018 - store opening acceleration to deliver operating leverage; Buy
- 01-26 FY17 earnings tripled,beat expectations
- 08-31 2Q17 results beat with strong sales growth; reiterating Buy
- 10-23 We are positive on double glass, but not so much on 3D glass
