Meijin Energy (000723): Flying Spur Cars Re-Orders Hydrogen Energy Business Develops Smoothly

Meijin Energy (000723): Flying Spur Cars Re-Orders Hydrogen Energy Business Develops Smoothly
Event: On December 31, 2019, Guangzhou Guoke Tendering Agency Co., Ltd. released the “Publication of Foshan Yueyun Public Transport Co., Ltd.’s Procurement of Hydrogen Energy Transport Vehicles in 2019” on its tendering and trading platform. Shanxi Meijin EnergyThe consortium consisting of Foshan Feichi Automobile Manufacturing Co., Ltd., a subsidiary of the company limited by shares, and Guangdong Mingyang Group Co., Ltd., is the first candidate for the procurement project. The publicity period is until January 3, 2020, and the bidding price is 43.Taiwan 8.5m hydrogen energy bus, bid price 7903.40,000 yuan.  Commenting that Feichi Motors has won the bid in a sustainable manner, and it is expected that the order will be redundant in 2020: According to the announcement, except for this time, three units 8 will be used.In addition to the 5m hydrogen energy transport vehicle, Feichi Motors announced on December 4, 2019 and December 20, 2019 that it won the bid for 154 new energy vehicles and 100 pure electric vehicles.The three successful bids involved a total of 297 vehicles (among which 197 were hydrogen-fueled vehicles and 100 pure electric vehicles), and the conversion involved a bid amount of 397.04 million yuan.In 2018, the market share of fuel cell buses produced by Feichi Automobile was 43%, ranking first in the country; the market share of hydrogen fuel cell cars was 23%, ranking second in the country.If the successful bidding project can be successfully realized and implemented, it will consolidate the market competition and market share of Feichi Automobile, and have a positive impact on the future operating performance and market development of Feichi Automobile and the company. Meijin Energy’s hydrogen energy industry chain is complete, and the development space is broad: In addition to Flying Cars, Meijin Energy has a complete hydrogen energy industry chain: 1 announced that Guohong Hydrogen Energy, as the largest domestic manufacturer of fuel cell stacks, has an annual output of20,000 fuel cell stacks and 5,000 fuel cell powertrains.The existing production equipment is standardized and independent intellectual property rights, which can be all domestically produced and customized.According to the official website information of Guohong Hydrogen Energy, nearly 2,000 vehicles have been delivered for commercial use of Guohong products in 2018, and the domestic market share in 2018 exceeded 70%.Nearly 50% of the fuel cell vehicles in the 2018 Annual Announcement Catalogue use Guohong hydrogen energy 厦门夜网 stacks.2) Hongji Chuangneng is the first domestic enterprise to realize large-scale industrialization of membrane electrodes for proton exchange membrane fuel cells.Hongji Chuangneng has an annual designed production capacity of 300,000 square meters, and the product cost is 20-30% lower than the current mainstream membrane electrodes.3) New industrial parks such as Qingdao Meijin Town and Jiaxing Automobile Industrial Park are being constructed one after another. The company’s fuel cell business is distributed nationwide. The coking industry is expected to achieve long-term profitability, and the profitability of the main business is enhanced: The coking industry has long experienced overcapacity and low capacity concentration, which has left the industry in a low-profit state for a long time.It is expected that from 2020, there will be a net surplus in the coking industry and the industry’s profit will increase.In the long run, after the supply-side reform of the coke industry is completed, the capacity is tight and the concentration is greatly increased. The industry has completely changed in the industrial chain, and the bargaining power of the industrial chain has been enhanced to achieve long-term profitability.  The company’s current consolidated production capacity of 660 is estimated. According to our comparison of the production capacity of A-share coke listed companies, Meijin Energy is currently the largest A-share listed coking company, and the performance flexibility of rising coke prices is the largest.At the same time, the company’s coke raw materials are supplied by its own coal mines, which has reduced the impact of rising coal prices and increased the company’s main business profitability. Investment suggestion: It is estimated that the net profit for 2019-2021 will be 12 respectively.53/15.87/17.7.5 billion.  Considering the improvement of the supply and demand structure of the coke industry in the future, the fuel cell vehicle industry continues to develop, and the company’s performance and cash flow balance continue to improve steadily.Give Buy-A investment rating, 6-month target price of 11.78 yuan. Risk reminder: the large shareholder’s pledge ratio is high, the coke price has dropped, the progress of new energy projects has fallen short of expectations, and the bidding contract cannot be resolved.