Guoxuan High-tech (002074): Issuance of Convertible Bonds Continues Expansion and Captures Market

Guoxuan High-tech (002074): Issuance of Convertible Bonds Continues Expansion and Captures Market


The event company issued a public announcement of convertible corporate bond issuance, which totaled no more than 18.

5 billion yuan.


Our analysis and judgement issuance of convertible bonds has begun, and the capital structure is expected to be optimized.

On October 18, 2019, the 青岛夜网 company’s application for the issuance of convertible bonds was reviewed and approved by the issuance review committee of the China Securities Regulatory Commission.

On December 4, 2019, the company’s application for convertible bonds was approved by the China Securities Regulatory Commission.

The fund raised by the convertible bonds does not exceed 18.

500 million US dollars, 6-year issuance period, main body rating, debt rating over AA, high allocation value.

If a large proportion of convertible bonds is eventually converted into shares, it will help ease the company’s funding pressure, reduce financial leverage, and optimize the capital structure.

Continue to expand production to seize the market, and convertible bonds are expected to help projects land quickly.

At present, the company is accelerating the construction of the previous fund-raising projects. Among them, Nanjing Guoxuan “an annual output of 300 million Ah high specific energy lithium battery industrialization project” and Qingdao Guoxuan “an annual output of 2Gwh high specific energy lithium battery industrialization project””, Guoxuan Battery’s” 4GWh annual production of high specific energy lithium battery industrialization project “and other parts of the production line have been put into production in batches. After all the above projects are in production, the company’s total production capacity is expected to exceed 14GWh.

The convertible bonds are mainly used for power lithium-ion battery industrialization projects in Nanjing and Lujiang, and the raised funds will ensure the rapid implementation of the project.

Under the decline, the market for lithium iron phosphate recovered, and the market development effect was remarkable.

Lithium iron phosphate products are proportional to ternary materials, and their advantages are mainly reflected in safety and production costs. The cost-effectiveness of the post-compensation era is gradually emerging.

According to GGII statistics, the installed capacity of lithium iron phosphate battery in the first half of 2019 is about 7.

66GWh, a year-on-year growth of 23%, is still worth looking forward to in the future.

At present, the company has developed lithium iron phosphate cells with a single energy density exceeding 190Wh / kg, and has successfully industrialized to replace downstream customers such as JAC and Chery New Energy.

At the same time, the company continued to conduct multi-faceted discussions and cooperation on power lithium batteries with well-known international automobile companies and auto parts suppliers. In February and May 2019, the company cooperated with BOSCH and India’s Tata Company, and the products officially entered the international market.Market; in the field of energy storage, the company has become Huawei’s important supplier of energy storage batteries.


Investment recommendations We expect the company’s operating income to be 73 in 2019-2021.

2.1 billion, 93.

9 billion, 111.

8.6 billion yuan, EPS is 0.

62 yuan, 0.

79 yuan, 0.

97 yuan, corresponding to the current total PE of 20.

7 times, 16.

3 times, 13.

2 times.

As the company ‘s production capacity continues to increase and the lithium iron phosphate market is picking up, the company ‘s performance may accelerate its release. It is estimated that it has an advantage compared with comparable companies. For the first time, the company is given a “recommended” rating.


Risk warnings 1) Risks that demand is less than expected; 2) Risks that product prices fall sharply; 3) Risks that accounts receivable returns are less than expected.