SMM News: northeast Securities released Guoxuan High Technology Research report pointed out that in 2019 passenger car subsidies fell, new energy bus policy to promote buses, iron lithium will rebound. In 2019, subsidies for new energy passenger vehicles were generally reduced by more than 50%, and 300km models under cost pressure may return to lithium iron. With the stimulus of new energy bus subsidy policy, bus sales can be cautiously optimistic. The iron lithium scene demeanor is restored, the space is guaranteed, at the same time, the company's large cylindrical products are widely recognized. In addition, the company's main passenger car customers are concentrated in Jianghuai, BAIC and Chery, buses are Jianghuai, An Kai and so on. The company signed a procurement agreement with Bosch at the beginning of the year, and the products were recognized by first-class customers in the world. The company has accumulated in three aspects and gradually achieved a breakthrough at the end of the passenger car.
The research report expects the company to achieve a net profit of 9.00 yuan and 1.03 billion yuan respectively from 1920 to 20, with a EPS of 0.79 yuan and 0.91 yuan respectively, corresponding to PE of 17 to 15 times. The iron lithium leading company will benefit from the recovery of iron lithium landscape demeanor & a three-way breakthrough to boost the valuation. Upgraded to "overweight" rating.