Foster (603806): The improvement of photovoltaic film structure drives the growth of improved performance. The new material has gradually maintained its overweight level.

Foster (603806): The improvement of photovoltaic film structure drives the growth of improved performance. The new material has gradually maintained its “overweight” level.
Investment Highlights: Company Announcement: The company achieved operating income in the first half of 佛山桑拿网 201929.800 million, an increase of 36 over the same period last year.08%; Net profit attributable to shareholders of listed companies.9.8 billion, an increase of 77 over the same period last year.23%; net non-recurring profit or loss attributable to shareholders of listed companies3.40,000 yuan, an increase of 56 over the same period last year.69%.Performance was slightly higher than expected.  The product structure continued to improve, and the single-season film sales volume in Q1 2019 hit a record high.In the first half of the year, the company sold photovoltaic films.5.5 billion square meters, an increase of 29 in ten years.77%, a total of 2 backplane sales.4.6 billion square meters, an increase of 30 in ten years.41%.In the first half of the year, the company’s film product structure continued to improve, bringing an average price increase of 7% in the first half of the year, and the film gross profit margin reached 19.21%, an increase of 1.46pct, and sales increased by 30%, benefiting from the rise in volume and price, photovoltaic film achieved revenue of 26.98 ‰, a year-on-year increase of 32%, benefiting from the improvement of the product structure; in addition, backplane prices continued to fall, and the average price in the first half of the year decreased by 14 compared with the same period of the previous year.5%, gross margin blood pressure 4.06pct to 17.41%, total backboard income 2.75 ppm, an increase of 7% per year.  The income of new materials has gradually increased, and the industrialization of photosensitive dry film has accelerated.In the first half of the year, the company’s electronic material products realized revenue of 25.59 million yuan, compared with 29.36 million yuan last year, mainly from sales of photosensitive dry film products.In addition, the company plans to raise 1.1 billion US dollars for the expansion by issuing convertible bonds2.500 million square meters of white EVA film technical transformation, 200 million square meters of POE packaging film and 2.The 1.6 billion square meter photosensitive dry film project has been approved by the China Securities Regulatory Commission’s Audit Committee. We believe that the company will increase the expansion of high-end EVA film products and continue to develop new material business layout, including photosensitive dry filmsAluminum-plastic composite film, FCCL products, etc.It is expected that the follow-up will become a new profit growth point.  Leading EVA companies, white EVA and POE film can help improve the structure, and the layout of new materials business has gradually increased.Maintain profit forecast. It is estimated that the net profit attributable to shareholders of the parent company in 2019-2021 will be 7 respectively.93, 9.15, 11.10,000 yuan, the full diluted earnings per share were 1.52, 1.75 and 2.11 yuan, corresponding to PE is 26, 23 and 19 times, maintaining the “overweight” level.