Cangzhou Mingzhu:Major beneficiary of strong EV growth in China,Buy reiterated

类型：公司研究机构：德意志银行研究员：James Kan 日期：2017-07-28

1H17 results in line with both DBe and Bloomberg consensus

    Cangzhou Mingzhu announced its 1H17 results after market close on 18 July 2017. The Company posted revenue of RMB1.63bn in 1H17, achieving 54% FY17DBe and 51% full year Bloomberg consensus. It delivered 1H17 NPAT of RMB284.9m, accounting for 49% FY17DBe and 46% full year Bloomberg consensus. 1H17 results are in line with both DBe and Bloomberg consensus.

    Major beneficiary of strong EV growth in China, Buy reiterated

    We believe Cangzhou Mingzhu should be the major beneficiary of strong EV growth in China, as the Company is aggressively expanding separator capacity three-fold till 2019 to catch up with strong demand from EV battery supply chain at a CAGR of 30%, aiming to increase its global separator market share from 4% in 2016 to 6% in 2019. This accounts for c.25% of gross profit in 2017, rising to 41% by 2019E and underpins our positive outlook on the Company. Supported by recent strong momentum of China EV shipment (up 48% YoY in June), reiterating Buy.