Sichuan Luqiao: Proposed 440 million yuan to participate in the construction of lithium battery project

Sichuan Luqiao announced on the evening of May 9 that the company intends to jointly set up a project company to build a "10,000 ton/year lithium three-yuan positive material and 20,000 tons/year positive material precursor project" with a construction period of about 2 years. It is expected to be put into production in 2020. The registered capital of the project company is planned to be 800 million yuan, the first phase of investment is 500 million yuan, the company has pledged to contribute 440 million yuan, the first phase of investment is 275 million yuan, and the shareholding ratio is 55 %.

The company said that under the premise of continuously consolidating and strengthening the advantages of the main industry, the company has diversified its resources around the main industry. It has previously invested in highway investment and operation projects, hydropower projects and mineral resources projects. The company's investment in lithium power projects is mainly based on the future development prospects of the new energy materials industry, in line with national policies and industry guidance, and in line with the strategic development direction of the company's resources section, which is conducive to the sustainable development of the company. The amount of the company's investment is small, and the company's main business, financial status and operating results will not have a major impact.

Sichuan Luqiao disclosed on the same day that the company had a total winning bid of approximately 351,334 million yuan in April this year, and the total accumulated investment of PPP projects was approximately 6.183 billion yuan.

According to the company's quarterly report, the company's operating income from January to March 2018 was 4.93 billion yuan, a year-on-year increase of 19.0 yuan; The net profit of shareholders belonging to listed companies was 1.2 billion yuan, an increase of 25.6 % year-on-year; The net profit of deducting non-recurring gains and losses attributed to shareholders of listed companies was 100 million yuan, an increase of 28.8 yuan year-on-year; EPS 0,018 yuan.

According to the analysis of Guangda Securities, the number of new contracts signed during the reporting period increased by 3.9 times, and the number of hand-ordered orders reached 2.8 times the construction income of the previous year. During the reporting period, the company achieved a new contract amount of 297.71 billion yuan, a year-on-year increase of 399 times. New order growth has accelerated on a high base, showing that the company has officially opened its third peak phase of construction, and strong order reserves are expected to form a strong guarantee of future performance. We estimate that by the end of 2017, the company's order in hand was about 48.2 billion yuan; After overlaying 18Q1 new orders, hand orders are expected to exceed 70 billion yuan, which is 2.1 times the total revenue for 17 years and 2.8 times the construction business income. At this stage, the company's hand orders have been the best level in history, and future income and performance growth are more certain. In addition, in recent years, the road investment climate has been relatively high. Sichuan's "13th Five-Year Plan" traffic investment has increased by 22.6 % year-on-year. The PPP model has boosted the infrastructure spurt in the Southwest region. The company serves as a core infrastructure platform under the Tieitou Group, and the third round of construction has begun. In the past two years, the new contract has grown significantly. Overseas mining has progressed smoothly. The company is a leading local infrastructure leader. The growth rate is in line with expectations and the valuation is low. The safety margin is high.

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