Rongbai Technology (688005) New Share Issuance and Listing Pricing Report: Leading the High Nickel Trend into Global Markets

Rongbai 南宁桑拿 Technology (688005) New Share Issuance and Listing Pricing Report: Leading the High Nickel Trend into Global Markets

Core point of view: New energy vehicle policy guides high-quality development trends Starting in 2017, new energy vehicle policy guidelines began to shift from scale-oriented to quality-oriented. According to high-tech lithium batteries, 2017-2018 battery installations36.

2/57.

0GWh, the demand for power batteries is expected to reach 90 in 2019-2020.

6/143.

6GWh, compound growth rate of more than 55%.

Under the minimum design of the dual-point system, the supplementary management target has been increased from 2 million vehicles in 2020 to 7 million vehicles in 2025, and at the same time guide the industry to high-end mileage, high energy density and high quality, high nickel ternary and other new typesBattery products are expected to accelerate to market.

High-Nickel Ternary-Global Technology Consensus for Power Batteries According to the technology roadmap of mainstream battery manufacturers around the world, ternary high-nickelization has become the consensus of global power battery technology directions. Third-party multi-material companies can fully take advantage of technical expertise in the short to medium termContinue to expand market share. In the long run, it will be integrated with upstream companies. Mastering resource cost advantages will further increase market share.

Rongbai Technology: domestic high-nickel, going global. According to the prospectus, the company is the first domestic high-nickel product mass production of change materials company, deducting non-net profit in 20182.

30,000 yuan, an increase of 121 in ten years.

20%, using the first-mover advantage of technology, customers include Ningde Times, BYD, LG Chemical, Tianjin Lishen, Funeng Technology, BAK Power and other first-tier manufacturers.

Earnings forecast and investment recommendations The company is expected to return to its parent’s net profit in 2019-2021.

9/5.

3/7.

0 ppm, compound growth rate of 45%, using relative estimation method, compared with Dangsheng Technology / Ningde era leading companies, considering the high nickel ternary scarcity, given the current year price-earnings ratio range 28-33 times in 2019, a reasonable value range 24.

8-29.

3 yuan / share.

Risk warning: The promotion and application of high-nickel ternary materials is lower than expected; intensified market competition has brought about a decline in product profitability; and the production and sales of new energy vehicles have fallen short of market expectations.