Enjie (002812): LG CHEM’s large single landing competitive advantage is significantly optimistic about the continued increase in global share

Enjie (002812): LG CHEM’s large single landing competitive advantage is significantly optimistic about the continued increase in global share

Company Status On May 19, Enjie announced the “purchase and sale contract” with LG Chem for the international purchase of wet-processed thin sheets for lithium battery vehicles, with the total amount not exceeding 6.

USD 1.7 billion, effective April 4, 2019, with a contract term of 5 years.

Comments on LG Chem’s large order finalized, definitive completion of comprehensive overseas supply.

We think this time 5 years 6.

The US $ 1.7 billion large-scale contract will fully kick off the global supply of Enjie shares. Assuming that the supply of semi-finished base film products is twice the domestic price, the supply scale in five years will exceed 1 billion flats.

The company has now entered international customers such as Panasonic, Samsung SDI, etc. We believe that with the completion of this large-scale order, the company’s large-scale supply capacity of cost-effective power lithium electrowet scale has been fully recognized internationally. The subsequent large-scale international orders are expected to accelerate. Globally,Total expectations continue to rise.

The three advantages of scale, cost, and customer resonate, and the level of Enjie’s leader will continue to increase.

The single is a typical heavy asset industry, with an investment of up to 400 million to 400 million yuan per billion square meters of parent rolls. The production process requires a deep accumulation of know-how. The production capacity needs to be shortened from investment construction to climbing to yield.Overseas customers, under the strict requirements of quality, the same batch of products have higher requirements for the production capacity of mother rolls than domestic products.

Under the demand of global leading lithium battery customers for stable and large-scale supply, the scale of production capacity is the core moat of the company in the future.

Costs are reduced in a stable scale and high-quality process control.

Overseas customers with a certification period of up to 2-3 years must give priority to companies with large-scale supply, and have the advantage of a first-time window.

Therefore, scale, cost and customers form positive feedback and compete with each other.

From the perspective of Enjie, in terms of scale: it has reached 1.3 billion flats at the end of 18, and we expect that it will exceed 都市夜网 2 billion flats at the end of 19 and will continue to expand. Overseas factories will also continue to advance, and the gap in scale will continue to widen.

In terms of cost: the scale of production capacity has expanded and stabilized; large orders have significantly diluted single and flat depreciation costs; the auxiliary materials recovery system has been improved, and the overall cost has continued to decline.

On the customer: LG single order landing, we expect that Samsung SDI / Panasonic and other large-scale supply will also be fully implemented.

Technically: the comprehensive yield rate is 78%, which is higher than the average level of 60% in the industry, and the know-how of the production process is profound.

Therefore, we believe that its leadership level will continue to rise.

It is estimated to maintain 四川耍耍网 a net profit forecast of 19 / 20e8.


6.1 billion.

The current routine corresponds to 19 / 20e 28 / 20xP / E, and maintaining a target price of 71 yuan corresponds to 19 / 20e 40 / 29x P / E and 41.

8% space is recommended.

Risks The production and sales of new energy vehicles fell short of expectations, and the market share of Enjie shares fell short of expectations.