Achieve a net profit of 48.4034 million in the third quarter and continue to make a profit after reversing losses.
The company achieved operating income of 9.414 billion in the third quarter, down 0.35% from the same period last year; net profit 4840.34 million, down 76.87% from the same period last year, slightly narrowing the decline; operating income in the third quarter was 3.031 billion, net profit was 24.39 million, an increase of 51.13% over the same period last year. Benefiting from the high prosperity of the photovoltaic industry this year, the company began to reverse losses in the second quarter and continued to make a profit in the third quarter. Operating indicators continued to improve in the third quarter, with operating cash flow bills increasing by 75.94 million in the quarter, an increase of 107.76% over the same period last year, and the company expects profit changes of 50 million to 150 million in 2017.
The black silicon battery plant is put into production and is expected to reach 2.6GW capacity by the end of the year.
The company began to enter the photovoltaic cell sector in 2016, raising investment projects to plan and invest in the construction of black silicon PERC cells and high-efficiency heterojunction batteries. In February this year, the company began stable mass production of polysilicon wet black silicon PERC cells based on WEDM, with an average efficiency of 20.3%. The 2GW high-efficiency PERC battery planned by the company in Peixian County, Xuzhou, reached 900MW capacity in the first half of the year and is expected to reach 2GW by the end of the year. In addition, the company's Vietnam 600MW high-efficiency battery capacity will reach 2.6GW capacity by the end of the year (the company's battery capacity 500MW in 2016).
The price of components is stable and the income is increasing steadily.
The company has 5GW component production capacity, polycrystalline black silicon superimposed PERC silicon wafer components put into production, the conventional production of components output power of more than 285W, the average power of nearly 290W, fully meet the leader's standards; the company's P-type polycrystal double-sided double-wave module has passed the German TUV Rheinland product certification. In the first three quarters of this year, domestic photovoltaic installed 42GW, component shipments increased greatly; and component products are supported by demand, the price is stable throughout the year, and the profitability of the company's component products is improved.
Household brand "Xin Sunshine", seizing the distributed wave of light and household use
The company has already begun to lay out in the field of household distributed photovoltaic systems. In October last year, the company launched "Xinyang" distributed integrated energy product integration platform, warehousing and logistics platform, online trading platform and other products, and then jointly promoted the "Xin Sunshine" household system with the Huitong agreement of the rural O2O e-commerce platform. And with Huitongda holding subsidiary Wan Interconnection New Energy signed a framework contract of about 100 million yuan, in order to make use of Huitongda network platform and the advantages of national member stores to sell "Xin Sunshine" photovoltaic household system and seize the market opportunity of household photovoltaic system.
Investment advice:
From 2017 to 2019, the company is expected to achieve operating income of 11.6 billion, 12.5 billion and 15 billion, and net profit of 40.52 million, 344 million and 459 million, down 250.56% from the same period last year, an increase of 749.32% and 33.29% of EPS 0.01,0.07,0.09 yuan, corresponding to Pamp E 511.89 times, 60.27 times, 45.22 times, maintaining the "overweight" rating.
Risk hint: there may be a risk that the price of raw materials in the upstream of photovoltaic will continue to rise, or there may be a risk of falling prices of battery and module products.
