Zhonghuan (002129): Competition for large-scale silicon wafers in line with Shen Wanhongyuan’s expectations improved overall
Event: The company released its semi-annual report for 2019 on August 21, 2019.
Report the core company’s operating income 79.
42 ppm, an increase of 22 in ten years.
91%; net profit attributable to mothers4.
52 ppm, an increase of 50 in ten years.
Investment Highlights: The performance is in line with Shen Wanhongyuan’s expectations, and the operating net cash flow has improved significantly.
Benefiting from the company’s advanced production capacity growth and tighter demand for monocrystalline silicon wafers, the company’s performance growth in the first half of the year increased significantly.
At the core of the report, the company achieved total operating income of 79.
42 trillion, an increase of 22 over the same period last year.
91%, net operating cash flow 8.
52 trillion, an increase of 57 over the same period last year.
67%, net profit attributable to shareholders of listed companies.
52 ppm, an increase of 50 over the same period last year.
With the company’s photovoltaic and semiconductor wafer new production capacity continued to be released, future performance is expected to continue to grow.
The first M12 photovoltaic large silicon wafer was launched, and the technical advantages of the single crystal faucet were prominent.
On August 16, 2019, the company released the “QuaFather” series of photovoltaic large silicon wafers, in which the M12 specification is a 12-inch ultra-large diamond wire-cut solar monocrystalline silicon square wafer with an area of 44,096mm2, a diagonal of 295mm, and a side length of 210mm.Compared with M2 area increased by 80.
Large silicon wafers not only increase the production capacity of silicon wafers, reduce the cost of growing crystals, but also greatly improve the production efficiency of cell wafers and modules.
The theoretical calculation of the new large silicon wafer will reduce the non-silicon cost of the cell by more than 20%, and reduce the cost of photovoltaic power by more than 6%, which will accelerate the process of photovoltaic parity on-line access.
The new large silicon wafer involves more than 100 declared patents (partially replaced) and its own intellectual property technology, which further 厦门夜网 enriches the company’s technology and intellectual property reserves and enhances the company’s competitive advantage.
The capacity of photovoltaic wafers has steadily expanded, and its market share has continued to increase.
In 2018, the company’s monocrystalline silicon wafer output exceeded 3 billion, with a market share of more than 30%, ranking first in the industry.
As of July 2019, the company’s photovoltaic wafer production capacity has exceeded 30GW. It is expected that the total production capacity will exceed 55GW after the fifth phase of the project is put into operation, which will continue to increase market share.
The company plans to build an industry through intelligent manufacturing concepts, digital production management, and informatization of manufacturing.
0 Smart factories, achieve product consistency, and more efficient photovoltaic efficient manufacturing, helping monocrystalline silicon wafers continue to reduce costs and increase efficiency.
At the same time, the company actively deploys synchronization of downstream components, holdings Dongfang Huansheng, a leading domestic manufacturer of shingle components, and gradually strengthening the synergy of the industrial chain.
Large semiconductor wafers are progressing well, and the 12-inch project is expected to be put into production in 2020.
In the first quarter of 2019, the company’s first 12-inch semiconductor polishing wafer production line was put into production.
In the first half of 2019, the Tianjin plant’s 8-inch silicon wafer expansion project has achieved the designed capacity; the 12-inch test line project was produced in February and continued research and development work; the Yixing plant is expected to put into operation an 8-inch production line in the second half of the year, with a 12-inchThe project is expected to move in equipment in the fourth quarter of 2019, and start production in the first quarter of 2020, and continue to advance according to the project design progress.
After all the semiconductor large silicon wafer projects are put into production, the company will achieve an 8-inch production capacity of 1.05 million wafers / month and a 12-inch production capacity of 170,000 wafers / month.
Maintain profit forecast and maintain “overweight” rating: the company is a national team of semiconductor materials, shouldering the historical responsibility of large wafer domestication, and the leader in photovoltaic monocrystalline silicon is fixed.
We estimate that the company’s net profit attributable to mothers will be 11 in 2019-2021.
95 ppm, corresponding EPS is 0.
41, 0.54 and 0.
72 yuan / share.
At present, the corresponding PE is 29, 22 and 17 times, respectively, maintaining the “overweight” level.