Foster (603806): Three quarterly reports of single-season film sales and average unit prices continue to grow

Foster (603806): Three quarterly reports of single-season film sales and average unit prices continue to grow
Investment Highlights: Company Announcement: From January to September 2019, operating income of 45 was achieved.900 million, an increase of 34 over the same period last year.6%; net profit attributable to shareholders of listed companies.92 ppm, an increase of 70 over the same period last year.8%; net profit attributable to shareholders of listed companies in place of non-recurring gains and losses4.920,000 yuan, an increase of 63 over the same period last year.73%.Net cash flow from operating activities1.7.5 billion, which was negative in the same period last year.Among them, the third quarter achieved revenue of 16 in a single quarter.12 ‰, an increase of 32% in ten years, net profit attributed to the mother1.0.94 million yuan, an increase of 59% in ten years.In line with expectations. Single-season sales and average unit prices of EVA film products continued to grow.From the perspective of the company’s main business development, the company provided and sold photovoltaic films in the first three quarters.4.7 billion square meters, an increase of 30% in ten years, the film business achieved revenue of 40.8.3 billion, of which single quarter sales1.9.2 billion square meters, sales in Q3 2019 increased by 30.2%; sales of backplanes in the first three quarters were 36.99 million 南宁桑拿 square meters, achieving revenue of 3.96 trillion, of which sales in the third quarter of 12.3 million square meters, flat for one year, slightly inserted chain.The company’s profitability is stable, and its gross profit margin and expense ratio are stable.Gross profit margin for the first three quarters of 19.72%, 0 compared with the same period last year.04pct, period expense ratio 6.91%, a decrease of 0 compared with the same period last year.33 points. Income from other businesses1.1.1 billion, mainly related to new materials.In addition, the company has used the convertible bonds to issue funds to expand its production. At present, the company has obtained the approval of the CSRC for raising 1.1 billion yuan of funds for expansion2.500 million square meters of white EVA film technical transformation, 200 million square meters of POE packaging film and 2.With 1.6 billion square meters of photosensitive dry film project, we believe that after the fundraising is in place, the company will further expand the high-end EVA film products and continue to expand the business layout of new materials, including photosensitive dry films, aluminum-plastic composite films, FCCL products, etc.It is expected that the follow-up will become a new profit growth point. Leading EVA companies, white EVA and POE film can help improve the structure, and the layout of new materials business has gradually increased.Maintain profit forecast. It is estimated that the net profit attributable to shareholders of the parent company in 2019-2021 will be 7 respectively.93, 9.15, 11.10,000 yuan, the full diluted earnings per share were 1.52, 1.75 and 2.11 yuan, corresponding to PE of 27, 23 and 19 times, maintaining the “overweight” level. Risk warning: PV installation planning and policies are not up to expectations, and the progress of new materials business is slow