Zhonghuan (002129): Better-than-expected performance growth PV + semiconductor two-wheel drive
The growth of investment highlights exceeded expectations and the gross profit margin increased quarter by quarter: the company’s performance in the first half of 2019 exceeded expectations.
In the first half of 2019, the company achieved operating income of 79.
42 ppm, an increase of 22 in ten years.
91%, achieving net profit attributable to the parent company4.
52 ppm, an increase of 50 in ten years.
69%, realizing net profit deduction for non-attribution3.
54 ppm, an increase of 58 in ten years.
57%, performance growth exceeded expectations.
Mainly because the company’s photovoltaic wafer expansion volume increased, and increased the Q1 single crystal wafer price increase and Q2 gross profit margin increased quarter-on-quarter, resulting in the company’s profit-side growth rate greatly exceeded the revenue-side growth rate.
The gross 杭州桑拿 profit margin of Q1-Q2 increased quarter by quarter. The increase in Q1 gross profit margin was expected to be due to the increase in product prices. The increase in Q2 gross profit margin was mainly due to the decline in the company’s non-silicon costs and raw material prices.
Photovoltaic + semiconductor two-wheel drive, technology leading industry.
The new energy industry achieved operating income of 72.
7.4 billion, +23.
In the context of a 30% drop in the price of silicon wafers, the gross profit margin has only shifted slightly by 3 as the cost of non-silicon has fallen.
At present, the company has achieved a capacity of 30GW silicon wafers, and the monthly output is damaged.
And started the fifth phase of 25GW single crystal project, the company’s single crystal production capacity exceeded 55GW after reaching production.
At the same time, the M12 product was launched, and the cost of power generation and electricity after application is expected to decrease to zero.
4 yuan / kWh, helping parity on the power generation side.
From January to June 019, the company’s semiconductor industry industry achieved 5.
84 ppm, an increase of 19 years.
The semiconductor industry has entered a period of domestic opportunity, and the company’s 12-inch silicon wafers will soon be available.
It is expected that one 8-inch production line will be put into operation in the second half of 2019, and the 12-inch project will begin to move in equipment. It will start production in Q1 of 2020.
It is expected that the company will have an 8-inch production capacity of 1.05 million pieces / month and a 12-inch production capacity of 300,000 pieces / month or more in 2022.
The two-wheel drive business of photovoltaic and semiconductor business grew.
Investment suggestion: We expect the company’s EPS for 2019-2021 to be 0.
42 yuan, 0.
62 yuan, 0.
88 yuan, corresponding (at August 21st) PE is 28.
8 times, 19.
4 times, 13.
Seven times, some prudently increase the rating.
Risk reminder: PV installation is less than expected, international trade frictions intensify, raw material prices fluctuate sharply, etc.