Ningbo Yunsheng (600366): The improvement in 3Q19 earnings was affected by the decrease in fair value

Performance review maintains a neutral 3Q19 performance and improves the chain. The company announced 1-3Q19 performance: revenue 13.

500 million, a year-on-year decrease of 12%, net profit attributable to mother 0.

470,000 yuan, corresponding to a profit of 0.

05 yuan, down 28% every year.

The company’s single quarter revenue in the third quarter of 19 was 5.

4 ‰, an annual increase of 2.

8%, + 20% MoM, net profit attributable to mother-6.22 million yuan, decreased by 1 every year.

6x or decrease by 0.

17 trillion, expected to decrease 0.

US $ 4.7 billion, which was lower than our expectation, mainly due to the provision for impairment exceptions.

The improvement in the company’s 3Q19 earnings from the previous quarter was mainly due to the improvement in gross profit margin 北京夜网 and the decrease in fair + investment net reduction of 0.

4 billion.

  Comments: 1) 19Q3 combined gross profit margin +2.

8ppt, +0 per year.

8ppt to 20.

0%, 1-3Q19 company’s comprehensive gross margin is 18.

0%, reducing by 0 every year.


2) The average price of rare earths increased in the third quarter.

19 1-3Q oxidation new average price 30.

80,000 yuan / ton, down 7% every year, the average price in the third quarter of 19 was 31.

5 million / ton, an increase of 3 from the previous month.

1%, down 2 every year.


  3) 3Q19 expense ratio improved month-on-month.

In the third quarter of 19, the management expense ratio / financial expense ratio / R & D expense ratio was -1.

0ppt / -1.

1ppt / -3.

1ppt, the total chain reduction is 0.

1.3 billion.

4) 3Q19 investment + fair value change net value reset 7.83 million yuan, the amount 北京夜生活网 of reduction decreased by 0.

4 billion.

1-3 quarter of 19 investment + fair value net income1.

200 million, +1 a year.

7x / + 0.

7.6 billion.

5) 3Q19 assets + credit impairment loss is 0.

21 trillion, +0.11 trillion, 1-3Q19 ten years +2.

6x to 0.

3.1 billion.

6) 1-3Q19 other income decreased by 0 every year.

41ppm to 9.3 million yuan, mainly due to reduced supplementary income.

  Development Trend Rare earth prices have stabilized.

Since July, domestic rare earth prices have improved. At present, the new domestic price of plutonium oxide has increased by about 17% from the high growth rate in mid-June.

Recently, the import of light rare earth raw materials has been relatively excessive, and demand for new energy vehicles has continued to increase. We expect the trend of rare prices to stabilize in the fourth quarter.

  Earnings forecast and forecast The company’s third-quarter performance exceeded expectations, and we lowered the net profit attributable to mothers by 30% / 21% to 0 in 2019/20.

One billionth.

20,000 yuan.

  The current contradiction corresponds to 2019/20201.

3 times / 1.

3 times price-to-book ratio.

Maintain Neutral rating and 6.

Target price of 50 yuan, corresponding to 1.

5x 2019 P / B ratio and 1.

4 times the 2020 P / B ratio, 8 as compared with the recent inclusion.

3% upside.

  Risk product sales fall short of expectations; rare earth prices drop sharply