标题：EVE EnergyComments on 2015 Results 2015 profit grew steadily promising presence in AEV power lithium battery
发布日期：2016-03-04 9:06:38
内容： 2015 net profit up by 82% YoY on steady growth of primary lithiumbattery and electronic cigarette (e-cigarette) businesses. In 2015,the Company registered turnover of Rmb1.35bn, up by 12% YoY, netprofit attributable parent company of Rmb151mn, up by 82.34% YoYand basic EPS of Rmb0.38, up by 80% YoY. Meanwhile, it announcedthe plan to pay out Rmb0.75 in cash dividend for every 10 sharesoutstanding. The considerable growth in the Company’s turnover ismainly due to the following three factors. 1) revenues from theCompany’s top three products all grew to some extent, of which itsrevenue from primary lithium battery (accounting for 51% of its corebusiness revenue), grew by 20% YoY with gross margin up by 1.93 pctto 36.11%; 2) its sales revenue from e-cigarette jumped by 77% YoY asthe Company raised output of “e-cigarette set”and“atomizer” withinelectronic cigarette product family on establishment of the upwardinflection point for this business; 3) 2015 non-recurring P&L talliedRmb59.30mn, of which profit compensation for acquisition of Smoorecigstood at Rmb77.49mn and loss from disposing of non-current assets atRmb44.39mn. Risks: less than expected demand in the AEV market, disappointing progress of power lithium batterycapacity expansion or business exploration. Earnings forecast and valuation. The Company is the largest manufacturer of primary lithium batteriesin China and has actively cut into the AEV (alternative energy vehicle) power lithium battery value chain.Given steady growth of downstream sectors for the Company’s primary lithium battery business andsecular growth of new energy passenger vehicles, we forecast the Company’s 2016/17/18E operatingincome will likely come in at Rmb2,549mn/3,351mn/4,198mn, including net profit attributable to ownersof the parent company of Rmb273mn/426mn/596mn, equivalent to diluted 2016-18E EPS ofRmb0.64/1.00/1.40, equivalent to PE of 30/19/14x. We apply 40x 2016E PE to it, arrive at the TP ofRmb25.6 and initiate BUY given its highly visible profit growth, presence in AEV sector and valuations ofpeers.
发布日期：2016-03-04 9:06:38
内容： 2015 net profit up by 82% YoY on steady growth of primary lithiumbattery and electronic cigarette (e-cigarette) businesses. In 2015,the Company registered turnover of Rmb1.35bn, up by 12% YoY, netprofit attributable parent company of Rmb151mn, up by 82.34% YoYand basic EPS of Rmb0.38, up by 80% YoY. Meanwhile, it announcedthe plan to pay out Rmb0.75 in cash dividend for every 10 sharesoutstanding. The considerable growth in the Company’s turnover ismainly due to the following three factors. 1) revenues from theCompany’s top three products all grew to some extent, of which itsrevenue from primary lithium battery (accounting for 51% of its corebusiness revenue), grew by 20% YoY with gross margin up by 1.93 pctto 36.11%; 2) its sales revenue from e-cigarette jumped by 77% YoY asthe Company raised output of “e-cigarette set”and“atomizer” withinelectronic cigarette product family on establishment of the upwardinflection point for this business; 3) 2015 non-recurring P&L talliedRmb59.30mn, of which profit compensation for acquisition of Smoorecigstood at Rmb77.49mn and loss from disposing of non-current assets atRmb44.39mn. Risks: less than expected demand in the AEV market, disappointing progress of power lithium batterycapacity expansion or business exploration. Earnings forecast and valuation. The Company is the largest manufacturer of primary lithium batteriesin China and has actively cut into the AEV (alternative energy vehicle) power lithium battery value chain.Given steady growth of downstream sectors for the Company’s primary lithium battery business andsecular growth of new energy passenger vehicles, we forecast the Company’s 2016/17/18E operatingincome will likely come in at Rmb2,549mn/3,351mn/4,198mn, including net profit attributable to ownersof the parent company of Rmb273mn/426mn/596mn, equivalent to diluted 2016-18E EPS ofRmb0.64/1.00/1.40, equivalent to PE of 30/19/14x. We apply 40x 2016E PE to it, arrive at the TP ofRmb25.6 and initiate BUY given its highly visible profit growth, presence in AEV sector and valuations ofpeers.
