China’s Boulder (600176): Internationalization of US production line takes a feasible step

China’s Boulder (600176): Internationalization of US production line takes a feasible step

Event: Company US 9.

6 Spindle production line was put into production.

Increasing the scale of the production line at the time of the trade war escalation will help expand the US market: This production line is the company’s first production line in North America. It originally planned to have a capacity of 8. After the trade war escalation brought about a comprehensive impact, the company April 25Announcing capital increase and expansion of production line size to 9.


According to the newly implemented 25% tariff policy implemented on May 10, the overall overall export tariff on US glass fiber products is estimated to be 29% -33%. It is expected that China’s glass fiber products that can enter the US market will be reduced, and local production capacity will be reduced.It will enable the company to further develop the US market; a reasonable step in the strategy of the three places 苏州桑拿网 and five continents: after the production line is put into operation, the company’s total glass fiber production capacity will increase.

6% to 181.

8 for the first time, of which overseas production capacity will reach 29.

6 samples, accounting for 16% of the company’s total production capacity.


The production line is a step in the company’s strategy in three continents and five continents. It also represents the acceleration of the company’s internationalization process and the deepening of its “external supply and foreign” strategy; the US layout will enhance the company’s profitability in the medium and long term:In comparison, the initial investment and labor costs of overseas projects are usually higher, but we believe that the U.S. layout in the medium and long term will improve the company’s profitability: 杭州夜网 1) companies in the United States have cheaper logistics and energy costs than domestic companies (such asDomestic electricity prices), natural gas prices are about 2 times that of the United States), 2) the US layout can save costs such as transportation costs and tariffs from domestic exports (such as domestic exports, according to the current tariff calculation, the freight and tariff costs per ton are about 300-350 USD, accounting for 60% -70% of gross profit per ton); the supply and demand pattern has improved, and the inflection point of the fiberglass industry has arrived: we believe that 2019Q1 is the bottom of the industry in the mid-term, and the inflection point of the industry cycle has arrived: 1) the inflection point of the production cycle: according to our statisticsIn 2019, the domestic glass fiber supplementary production capacity will be significantly reduced to 20-30 seconds (2018: 100 replacement),海The average error of capacity expansion of outer glass fiber (2019: about 20), and the new capacity in 2018 is expected to gradually be digested in 2019H1; 2) The key point of price profitability: Many small companies have already struggled on the edge of the break-even balance, and the price hasSupport, as the economy and demand pick up, the inflection point of prices and profits is coming; 3) The inflection point of differentiated development: By 2014, we believe that the development of new infrastructure such as wind power installation and 5G base stations in 2019 will further boost and stimulate high-end productsDemand thus accelerates the industry’s differentiated development trend, which is most beneficial to enterprises; investment advice: After experiencing a retreat in the early stage, the company’s risk-reward ratio has entered a very high cost-effective range.

It is expected that net profit attributable to mothers will be 25 in 2019/2020.


6 ppm, a ten-year increase of 7.

5% / 20.

1%, EPS0.



Maintain target price of 14.

86 yuan and “Buy” rating; risk warning: demand exceeds expectations, capacity is released faster than expected