Event: the company's mid-2022 performance forecast: H1 is expected to achieve a non-net profit of 25.94-2.794 billion yuan in 2022, an increase of 185.12% and 207.11% over the same period last year. Among them, Q2 realized deduction of non-return net profit of 15.53-1.757 billion yuan in a single quarter, an increase of 70.66% Mel 93.08% over the same period last year, and a month-on-month increase of 49.76% Mel 69.94%, achieving higher-than-expected growth.

Driven by photovoltaic glass and exports, soda ash continues to thrive. As of the 2021 annual report, the company has a combined alkali production capacity of 1.1 million tons. In the first half of 2022, the average price of heavy alkali was 2789.92 yuan / ton, an increase of 59.48% over the same period last year; the average price of ammonium chloride was 1441.67 yuan / ton, an increase of 93.20% over the same period last year. Lianalkali plate contributed a substantial increase in the second quarter compared with the same period last year. Soda core benefits from: 1) Photovoltaic glass centralized ignition: by June, photovoltaic glass is under construction in China with a production capacity of 44,000 tons / day, which will boost the new demand for more than 3.1 million tons of soda ash. 2) High export boom: high overseas energy prices push up the price of soda ash. From March to May, China's soda ash exports reached 14.441,719.56 million tons, an increase of 52.94%, 82.59%, 228.93%, and continued to increase month-on-month. As of July 12, the tax price of heavy alkali in Sichuan has risen to 3050 to 3100 yuan / ton, maintaining a strong trend, while ammonium chloride has benefited from the rising prosperity of agrochemical industry. In 2021, the company's double-ton cost is about 1969 yuan / ton, and relying on good cost control ability, complete cost leads the industry, with significant advantages.

Double glyphosate-glyphosate plate high profits, the company's integrated IDA process advantages. As of 2021 annual report, the company has 150000 tons of diglyphosate and 50,000 tons of glyphosate. Genetically modified food crops such as soybeans and corn are booming, and the price linkage of diglyphosate and glyphosate is strong. In 2022, the prices of H1 glyphosate and diglyphosate increased by 95.46% and 125.67% respectively compared with the same period last year. Glyphosate adopts overseas mainstream IDA process, and hydrocyanic acid and other intermediates are fully equipped. We estimate that the cost of raw materials is about 276 million yuan / ton, and has the advantage of environmental protection. In the future, under the good industry pattern, glyphosate will enter the medium-and long-term boom period. In addition, the company plans to build 500000 tons of double glyphosate, the business plate of outstanding follow-up growth.

Photovoltaic materials began to be centrally put into production and released in the third quarter. The company's photovoltaic materials began to be released centrally in the third quarter: 1) 10GW photovoltaic wafers: start-up size 1.5-2GW wafers have produced qualified wafers and wafers in June, reaching the expected product quality, and are currently being shipped to downstream battery packaging manufacturers for process cooperation. Under the industry trend of concentrated release of silicon capacity and concentrated production of N-type cells such as HJT and TOPCon in the future, N-type silicon wafers have broad market prospects; 2) 8GW photovoltaic glass: the first phase of 1900 tons / day photovoltaic glass, 2GW photovoltaic module packaging project has completed equipment installation and is expected to be put into production in the third quarter.

Profit forecast and investment advice. From 2022 to 2024, we estimate that the operating income of the company will be 159.97 plus 259.77 billion yuan respectively, the net profit of return to the mother will be 50.76 billion yuan and 59.13 billion yuan respectively, and the corresponding PE will be 5.46 times that of 7.03 shock. The company's main business to maintain a high economy, photovoltaic silicon wafers, photovoltaic glass began to concentrate production in the third quarter. The photovoltaic sector business is expected to contribute about 50% of the company's homing net profit in 2024, and the company is expected to usher in a continuous improvement in the valuation center, maintaining the "buy" rating risk hint: the new production capacity is not as expected, and the photovoltaic demand is not as expected.