Event: the company released its annual performance report for 2010. during the reporting period, the company realized operating income of 4056197809.39 yuan, an increase of 97.15% over the same period last year, and realized a net profit of 440121379.87 yuan belonging to shareholders of listed companies, an increase of 67.09% over the same period last year. The net profit belonging to shareholders of listed companies after deducting non-recurring profits and losses was 421645483.16 yuan, and basic earnings per share was 0.22 yuan.
High-end equipment technology leading, self-sufficient to ensure production. During the reporting period, the company successfully developed JD-1600 fully automatic soft shaft single crystal furnace, and has achieved mass production. The furnace has a high degree of full automation, strong adaptability, low degree of manual dependence, good expansibility of centralized monitoring, and has reserved CCZ hardware and software interfaces. The company uses self-developed JD-1600 furnace and diamond wire slicer to successfully produce 12-inch silicon rods, 210mm wafers and other products, which have been certified by customers and supplied in bulk. The company's new materials business expansion all use self-produced single crystal silicon furnaces, the company's strong equipment research and development capabilities for the expansion of new materials business has laid a solid foundation.
The new materials business continues to develop and is progressing smoothly. During the reporting period, the company successfully reached production in Wuhai Phase I, and achieved full production and full sales. Although gross margins were dragged down by capacity climbing in the first half, they have risen to normal levels in the second half of the year. At present, Wuhai Phase I has expanded to 8GW, and this year it will continue to expand new materials business, focusing on promoting Leshan Phase I 12GW pull Rod cutting Project and Wuhai 10GW High efficiency single Crystal Silicon Rod Project, continue to improve the level of scientific control and automation, and strive to achieve sustained and steady growth of new materials business. It is expected that after all the disclosed production capacity of the company reaches production, the wafer production capacity will reach more than 42GW.
The power plant business ensures a stable cash flow. In terms of new energy power generation business, by the end of 2020, the total installed capacity of photovoltaic power stations (including ground power stations and distributed power stations) and wind power stations connected to the grid totaled 1699.93MW, the company increased the installed capacity of photovoltaic power stations (10.49MW) and wind power stations (349.50MW). Electricity revenue provides a stable cash flow for the company and provides a guarantee for the company to expand production.
The smooth release of Dingzeng will help the development of the company. In March, 2020, the company launched the non-public offering of shares in 2020, which is intended to raise no more than 2.5 billion yuan for Wuhai 10GW high-efficiency single crystal silicon bar project and supplementary liquidity. The matter was examined and approved by the issuance Review Committee of the China Securities Regulatory Commission in September 2020. In January 2021, the company completed fund-raising and capital verification, with a total amount of 2499999998.80 yuan. The smooth release of Dingzeng contributes to the development of the company.
Investment suggestion: the company will form a pattern of power station and silicon wafer flying together in the future. It is expected that after the smooth production and shipment of silicon wafers, the company's performance is expected to further improve. The company's 2021-2023 net profit is expected to be 10.26,17.27 and 2.621 billion yuan respectively, corresponding to EPS0.43, 0.72 and 1.09 yuan per share, and a "buy" rating corresponding to PE20, 12 and 8 times.
Risk hint: photovoltaic industry policy risk, project production time is not as long as expected risk.