Key elements of the report:
The company released the 21 mid-year report, with revenue of 2.351 billion yuan in the first half of the year, + 36.66% year-on-year; net profit of 455 million yuan; + 98.69%; deduction of 429 million yuan of non-return net profit, + 101.91% of the same period last year.
Main points of investment:
There has been a high increase in wafer shipments and considerable profitability: during the reporting period, the company's Wuhai Phase I project capacity reached 8.5GW, while Leshan Phase I 12GW rod project was put into production, which is currently in a climbing period and is expected to reach production this year. This year, the company released silicon wafer production capacity, and the revenue of the new materials business was about 1.227 billion yuan, a year-on-year increase of 67%. In the first half of the year, the revenue of new materials business accounted for 52.19%, and the company's non-silicon cost was in the leading level in the industry. in the case of a sharp rise in silicon prices in the first half of the year, the gross profit margin remained above 30%, demonstrating the company's strong cost control ability. The company actively signs long single lock wafer production capacity with downstream customers, including 1.26 billion single crystal wafers or silicon rods in Jingao, about 4.818 billion yuan, 774 million single crystal wafers or rods in Jiangsu, about 3.018 billion yuan, Tongwei 960 million single crystal wafers, about 5.261 billion yuan and Jiangsu Runda 946 million wafers, about 3.689 billion yuan, with a total size of 3.94 billion wafers, with estimated tax sales of 167.86 billion yuan.
New energy power generation has developed steadily, and profits remain high: by the end of the reporting period, the company has connected photovoltaic power stations 1.25GW, wind power stations 148.5MW; new energy power generation capacity total 1.40GW. In the first half of the year, the business income of the power station was about 754 million yuan, an increase of 23% over the same period last year, and the gross profit margin was 59%, maintaining a high level The company maintains an appropriate plant size to protect its light-asset operation model, and transferred its 41 per cent stake in Xilinhot in August this year.
To ensure the expansion of Leshan production, the single crystal furnace is mainly self-supplied this year: due to the expansion of Leshan first phase pull rod project in the first half of the year, the company's single crystal furnace and other equipment production capacity basically meet the self-supply demand. Only a small part of the previous orders were delivered and confirmed in the first half of the year, with an operating income of about 18 million yuan. It is expected that the company will start the construction of 12GW drawbar production capacity of Leshan Phase II next year, and the equipment business income will remain at a low level.
Profit forecast and investment advice: we maintain our previous profit forecast. We expect the company's operating income for 21-23 years to be 90.86 plus 18.325 billion yuan, respectively, and its home net profit to be 10.59 million 2.94 billion yuan and 2.812 billion yuan, respectively, corresponding to an EPS of 0.44 soybean 0.91 plus 1.16 yuan per share, maintaining the buy rating.
Risk factors: the production speed of new capacity is not as fast as expected, the profitability of 210 silicon wafer is not as expected, and the price of upstream raw materials has risen sharply; the price of silicon wafer is lower than expected, and the risk of technological
