Event description
In the first three quarters of 2022, the company achieved an income of 10.804 billion, an increase of 5.44%, a net profit of 1.651 billion, an increase of 9.32%, and a net profit of 1.481 billion, an increase of 1.05%. Q3 realized revenue of 4.285 billion, up 17.97% over the same period last year; net profit attributable to 649 million, up 312.78% over the same period last year; and deducted 594 million of non-homed net profit, up 336.67% from the same period last year.
Event comment
Under float pressure, the incremental contribution of polysilicon is obvious. The third quarter achieved a performance of 649 million in a single quarter, a substantial increase of 312.78%. In the third quarter of last year, Yichang polysilicon factory and Dongguan photovoltaic totaled 672 million of asset impairment. In view of the split plate, considering that the float glass boom is still under pressure in the third quarter, it is expected that the single case is still at a low level, but depending on the company's advantages such as ultra-white glass, it may be better than the industry; engineering glass is expected to pick up year-on-year profit margins after the price of float glass falls, and capacity release is also expected to lead to production growth; weak demand in the consumer electronics industry is expected to remain under pressure in the third quarter. Solar energy plate benefits from the resumption of polysilicon production in Yichang and the high prosperity of the industry, which is expected to contribute significant performance increment in the third quarter; photovoltaic glass is expected to have a limited contribution in the third quarter considering the cold repair of the Guangdong production line and the industry boom is still low.
According to the report, revenue increased by 17.97% in the third quarter, and gross profit margin increased by 28.68%, slightly lower than the previous quarter. Although the float economy is still in the decline, polysilicon increment has effectively hedged; the rate for the period is 11.33%, which is down 672 million from the same period of last year. Pct; asset impairment loss in the same period last year is only 4 million. Finally, the vested net interest rate was 15.18%, an increase of 3.78 pct over the same period last year and a decrease of 1.45 pct compared with the previous 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, Hebei Windows Branch, a subsidiary, is expected to ignite a 110t ultra-thin electronic glass production line in October, which may 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. From 2022 to 2023, the performance is expected to be 21.1 and 2.75 billion, corresponding to PE of 10.3,7.9 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.