Wanrun shares (002643): CO2 will continue to be heavy in the future and OLED materials are progressing smoothly

Wanrun shares (002643): CO2 will continue to be heavy in the future and OLED materials are progressing smoothly

This report reads: The company’s 19Q3 performance continued to grow rapidly. With breakthroughs in OLED materials, benefiting from the volume of alternative environmentally friendly materials driven by the advancement of “National Six” emission standards in the future, the company’s performance is expected to continue to maintain high growth and maintain an overweight rating.

Investment Highlights: Maintain Overweight rating.

The company’s scale is leading the continuous heavy volume, and we maintain the EPS of 2019-2021 to 0.



88 yuan. Underground 重庆耍耍网 expansion in the sixth country promotion will ensure long-term growth and maintain target price of 15.

91 yuan is unchanged, corresponding to 19 years of PE is 27.

5 times, maintaining the overweight level.

Net profit increased by 20% in the third quarter, in line with market expectations: the company achieved operating income from January to September 201919.

4.3 billion (+5 year-on-year.

03%), net profit attributable to mother 3.

6.6 billion (+ 19% year-on-year.

64%), in line with market expectations.

Among them, the third quarter achieved revenue of 6.

5 billion (+13 year-on-year.

62%), realizing net profit attributable to mothers1.

3.6 billion (+19 year-on-year.


In terms of expense ratios, the sales, management, R & D, and financial expenses rates are 5.

11% / 7.

97% / 7.

49% /-0.天津夜网

91%, a ten-year change of -0.

87%, +0.

10%, +0.

86%, +1.


The best growth expectations for the third quarter are: (1) continued heavy volume of raw materials; and (2) an increase in the proportion of high-margin products in materials.

Finally, the initial heavy volume opens up growth space: the company’s overall output is 3350 tons, and the company’s new capacity expansion of 2,500 tons will be put into production by the end of 2019.

In addition, the company plans to build an additional 7,000 tons of production capacity and put it into production in batches by 2020 and 2021. Among them, 4,000 tons of ZB series will be used by Crop Wanfeng to produce Euro 6 / National 6 diesel vehicle exhaust treatment materials, which will fully benefit from the upgrade of national 6 exhaust emissions standards.

The company is the core supplier of Johnson Matthey of global exhaust gas treatment giant. Its expansion projects in China and Poland will bring over 4,000 tons of demand, supporting the company’s gradual volume increase in the future.

OLED materials are expected to achieve breakthroughs: it is the only domestic supplier that provides monomers to the three major international mixed crystal manufacturers, with an annual production of more than 400 tons of TFT liquid crystal materials.

At present, OLED monomers with independent intellectual property rights have been verified by downstream manufacturers, and they are currently progressing smoothly.

Risk warning: Carbon dioxide molecular sieve demand is less than expected, and OLED screen penetration is less than expected.