Event description
The company realized revenue of 6.519 billion in the first half of 2022, down 1.45%, realized net profit of 1.001 billion, down 25.98%, and deducted non-return net profit of 888 million, down 33.25%. Of this total, Q2 achieved revenue of 3.734 billion, up 3.48% from the same period last year; net profit from attribution was 617 million, down 20.76% from the same period last year; and 551 million was deducted from non-return net profit, down 27.17% from the same period last year.
Event comment
The performance of solar energy sector has increased significantly. In the first half of the year, the revenue of the glass industry reached 4.429 billion, down 17.3%, including 20.66% and 43.66% for float and photovoltaic, 1.11% for engineering glass, 64.34% and 101.18% for float photovoltaic, cold repair of photovoltaic glass in the first half of the year) and 216.17% for engineering glass (on the one hand, profitability for deep processing rebounded after the price of the original film fell. On the other hand, the company's production capacity continues to expand) The consumer electronics industry was under pressure. The income of the electronics and display plate in the first half of the year was 810 million, down 8.06% from the same period last year, and the net profit was 112 million yuan, down 50.15% from the same period last year. Solar energy plate benefited from the resumption of polysilicon production in Yichang and the high prosperity of the industry, with a total income of 1.434 billion yuan in the first half of the year, an increase of 225.49% and a net profit of 282 million yuan, a sharp increase over the same period last year. In the first half of the year, the gross profit margin was 26.86%, which was 11.98% lower than the same period last year, which was basically the same as the same period last year. Due to the increase in government subsidies, other income in the current period increased by 62.75 million yuan compared with the same period last year; finally, the net interest rate for the whole year was 15.47%, with a decrease of 5.2 pct.
Q2 operation is better than Q1. Q2 achieved a revenue increase of 3.5% in a single quarter, and a gross profit margin of 29.25%, an increase of 0.9 pct over the same period last year. We judge that it is mainly due to the incremental contribution of the solar sector. Float glass is expected to continue to decline due to weak real estate demand; the fee for the period is 11.27%, which is 1.67 pct lower than the same period last year, and the management fee is 1.22 pct lower than the same period last year.
Finally, the vested net interest rate was 16.54%, an increase of 2.77 pct over the same period last year.
The layout of the whole photovoltaic industry chain is expected to accelerate the volume. The company is building 4 photovoltaic glass production furnaces and supporting processing lines with a daily melting capacity of 1200 tons in Fengyang, and a photovoltaic glass production line with a daily melting capacity of 1200 tons in Xianning, of which Fengyang No.1 kiln has been ignited in May 2022. Fengyang No.2 kiln has been ignited in August 2022, and the construction of the rest of the production line is being carried out in an orderly manner as planned. In addition, the preparatory work of two new photovoltaic glass production lines with a daily melting capacity of 1200 tons in Beihai City, Guangxi is being carried out in an orderly manner. The company's Yichang production base has a high purity silicon production capacity of 10,000 tons / year, wafer 2.2GW/ year, ingot purification single crystal material 7200 tons / year; Dongguan production base has battery chip 0.6GW/ year, component 0.6GW/ annual production capacity.
Obvious advantages, continue to be optimistic about the rapid volume of electronic glass in the company. In 2021, the second generation of high-aluminum KK6 glass progressed smoothly and began to be widely used in domestic high-end brand customers; at the same time, Xianning optoelectronic high-aluminum second-generation upgraded product KK6-P smooth industrialization; the new generation of KK8 glass has been successfully developed in the laboratory, in accelerating the commercial operation of production, the first line of Qingyuan will prepare for the large-scale production of KK8 after the technical transformation is put into production. In addition, the subsidiary Hebei Windows Branch is building a 110t ultra-thin electronic glass production line, which is expected to be put into production in 2022, which is expected to further enhance the company's advantage in the field of ito glass.
Investment advice: electronic cover glass is expected to lead the trend of domestic substitution; photovoltaic glass or rapid volume into the first echelon; engineering glass positioning high-end, capacity expansion. Jump out of the cyclical framework and you may see both performance and valuation rise. It is estimated that the performance from 2022 to 2023 is 22.4 and 2.88 billion, corresponding to the PE of 8.9,6.9 times.
Risk hint
1. Low expectations for the completion and restoration of real estate.
2. The new supply in the industry is higher than expected.