Description of the event

Junda Co., Ltd. released its 2024 semi-annual report. 2024H1 achieved revenue of 6.374 billion yuan, a year-on-year decrease of 32.35%; of these, 2024Q2 achieved revenue of 2.66 billion yuan, a year-on-year decrease of 51.23%, a year-on-year decrease of 28.39%; net profit to mother of 0.186 billion yuan; net profit due to mother of 0.219 billion yuan.

Incident comments

The 2024H1 company shipped 19.21 GW of batteries, of which the N type was 16.43 GW, and the 2024Q2 shipped 9.13 GW due to reduced industry production schedules and adjustments in the operating rate of the company's production line, which decreased slightly from month to month, including 7.87 GW for the N type. The company's share of overseas shipments increased quarterly, and the share of 2024H1 overseas sales increased to 13.79%. According to InfoLink, the company ranked second in the world in battery product shipments in the first half of 2024, with N-type battery shipments remaining number one in the world.

In terms of financial data, the 2024Q2 company's expenses rate for the period was 4.74%, which was further reduced from month to month, with management expenses falling by 30 million yuan. The company's net cash from 2024H1 operating activities was 0.55 billion yuan, of which Q2 was about 0.428 billion yuan, a significant improvement over the previous month. 2024H1 calculated asset depreciation of 0.071 billion yuan, mainly due to inventory price declines, of which 0.064 billion yuan dragged down performance in Q2. The company's 2024H1 non-recurring profit was 0.224 billion yuan, of which Q2 was only 0.033 billion yuan, mainly government subsidies related to electricity costs.

Looking ahead, the company's global layout will accelerate, and the share of overseas shipments will continue to grow, effectively guaranteeing the company's profits; Oman's 5GW battery is expected to be put into operation in the first half of 2025, and the company will seize the window period where overseas battery production capacity is relatively scarce by landing early production capacity; continue to promote preparations for the issuance of H shares, actively build an overseas capital market platform, and integrate various shareholder resources. Junda currently has a production capacity of about 40GW TopCon batteries. The new-generation N-type battery “MonO 2” series products have a double-sided ratio of 90%, mass production efficiency has reached 26.3%, and the selling price is higher than the industry average. With the restoration of component production schedules, TopCon batteries, as the link with the least production capacity in the main industry chain, are expected to take the lead in price restoration.

Risk warning

1. Deterioration of the competitive landscape;

2. PV installation falls short of expectations.