Longji shares (601012) 19Q3 quarterly report comment: performance in line with expectations

Apr 3, 2020 桑拿

Longji shares (601012) 19Q3 quarterly report comment: performance in line with expectations

Longji shares (601012) 19Q3 quarterly report comment: performance in line with expectations
Event: The company released three quarterly reports, achieving revenue of 226 in Q1-Q3 2019.9.3 billion, up 54 before.68%, net profit attributable to mother 34.84 million, an increase of 106 every year.03%, the net profit after deducting non-attribution is 34.1.1 billion, an annual increase of 114.62%. Investment Summary: The sales of silicon wafers have greatly increased, and Q3’s performance has been outstanding.Revenue from Q1 to Q3 in 2019 was 226.9.3 billion, up 54 before.68%, net profit attributable to mother 34.84 million, an increase of 106 every year.03%.In Q3 2019, revenue was 85.8.2 billion, up 83 before.80%, up 2 from the previous month.15%, net profit attributable to mother 14.7.5 billion US dollars, close to the performance forecast ceiling, exceeding the increase of 283.85%, up 5 from the previous quarter.46%.The gross profit margin increased quarter by quarter, with a gross profit margin of 29 in Q3 2019.9%, an increase of 1.9%.The outstanding performance of 2019Q3 shows the company’s strong profitability as a leader in the photovoltaic industry. The company’s 2019Q3 revenue is attributed to the increase in mother’s net profit, mainly due to the 2019Q3 silicon wafer, and module sales have increased significantly.2019Q3 company silicon replacement 16.9.7 billion tablets, an increase of 77% in ten years, and revenue of 35.26 trillion, component cost 1.75GW, an annual increase of 42%, and realized revenue of $ 2.8 billion.Due to the delay of the start-up time of the domestic market, the sales volume of modules was lower than initially expected, and the sales of silicon wafers increased significantly.It is estimated that the company’s annual silicon wafer volume is expected to reach 6 billion wafers, and the module is estimated to be 8GW. The speed of production capacity expansion has accelerated, consolidating the scale of the industry leader.The company terminated 19Q3 inventories to reach 6 billion U.S. dollars, an annual increase of 40.1%, mainly due to the expansion of the company’s production scale and increase in overseas sales.The construction in progress reached 19.100 million, an increase of 123 in ten years.1%, mainly due to increased investment in new capacity. During the continuous development of the photovoltaic industry toward single crystal and high efficiency, the company continued to expand to consolidate the top of the leader.Longji Yunnan’s second-phase project is gradually climbing, and full production is expected next March. Yinchuan’s 15GW monocrystalline silicon wafer capacity will be released one after another.At the end of 2020H1 and 2020, the silicon wafer capacity is expected to reach 50GW and 65GW, and the 无锡桑拿网 consolidation of leading enterprises is stable.At the same time, the company is actively expanding the module business. It has invested US $ 2.2 billion in the construction of a 5GW monocrystalline module project in Jiaxing. It is planned to start production gradually in 2020. The module capacity will be 2019?In 2021, it is expected to reach 16GW, 25GW, 30GW, and the battery chip is expected to reach 20GW in 2021. The company’s performance is guaranteed by orders, and the overseas market is in good shape.The company Q3 has continuous long-term single-sale contracts with Lu’an Solar, Vietnam Battery, Shanghai Yize, Chint Electric, and Taizhou Zhonglai Optoelectronics, with a transfer volume of 2.1 billion pieces, 13.100 million pieces (2019H1 has implemented 0.900 million tablets), 6.The 600 million and 800 million tablets provide order guarantee for the company’s future performance, and the component business Q4 has already been full.The company has begun to receive orders in 2020, and 2020H1 is nearly full. It plans to replace 20GW of components in 2020, of which the overseas market will account for 70%. It plans to replace 10 billion silicon wafers in 2020. The company’s component business accounts for 70% overseas. In 2019, the country with the largest overseas supply of the company’s Q1-Q3 is the United States. The countries with more than 700MW and 400-600MW range include Spain and Norway.In addition, there are Victoria, Japan, the Netherlands, Saudi Arabia and so on.Next year, the overseas market will show a good growth trend. The traditional markets (the United States, Europe, etc.) will grow with certainty, and the medium-sized markets (the Middle East, etc.) will be vigorously developed. The development of new products leads the development of the industry.The company also continuously develops new products. Recently, the company launched the 166mm large-size silicon wafer M6 and the new module Hi-MO4 installed with large-size silicon wafers. Both the cost of electricity and BOS have been significantly reduced. It is expected that the new product utilization rate will reach 75-80 next year%.The launch of new products helps the company to increase its market share and profitability. Investment suggestion: The company is a leading domestic monocrystalline silicon wafer company. In the situation of maintaining a high boom in the overseas market and the gradual start-up of the domestic market, the company has a production capacity advantage and strong bargaining power in the monocrystalline wafer field, which will benefit the industry.Rapid development and significant improvement in company performance.We expect the company’s operating income for 2019-2021 to be 314 trillion, 459 trillion and 549, respectively.7 trillion, net profit attributable to shareholders of listed companies is 50.600 million, 63.3 ppm and 73.700 million, the budget income is 1.34 yuan, 1.68 yuan and 1.95 yuan, the corresponding PE is 17, 13 respectively.6, 11.7.Give “Buy” rating. Risk Warning: Insufficient support for photovoltaic policies, prices of photovoltaic products have fallen sharply