Depth-Company-Longji (601012): A New Chapter in the Growth Spectrum of 100 Billion Leaders with Growth and Expansion

Depth * Company * Longji (601012): A new chapter in the growth spectrum of 100 billion leading companies with growth and expansion

The company released its 2019 Interim Report, with a 54% increase in earnings in line with expectations.

As a single crystal leader, the company has expanded its cost advantage, actively expanded, and seized market share; it is optimistic about the company’s long-term competitiveness and maintains a buy rating.

Key points supporting the rating The 54% increase in 2019H1 results is in line with expectations: The company released its 2019 Interim Report and its first half revenue was 141.

1.1 billion, an annual increase of 41.

09%; realized net profit attributable to shareholders of listed companies 20.

100,000 yuan, an increase of 53 in ten years.

76%; profit after deduction of 19.

960,000 yuan, an increase of 59 in ten years.


Among them, 2019Q2 was profitable13.

980,000 yuan, an increase of 83 in ten years.


The company’s interim results were in line with expectations.

Monocrystalline products have a high growth in production and sales, and the overseas sales of components account for nearly 80%: Through further highlighting the cost performance advantage, the global market share of monocrystalline continues to increase, and it is expected to reach 62% in 2019.

In the first half of the year, the company realized the export of monocrystalline silicon wafers.

4.8 billion tablets, an increase of 183% in ten years, for personal use7.

9.5 billion pieces; single crystal modules exported 3,193MW, an increase of 21% per year, 265MW for personal use; single crystal batteries exported 712MW.

The company’s overseas market development has achieved significant results, with further expansion of its sales area and significant growth in overseas revenue. In the first half of the year, the sales volume of overseas monocrystalline modules was 2,423MW, an increase of 252%, accounting for 76%.

Gross profit margin increased and operating cash flow improved significantly: Benefiting from strong demand for high-efficiency monocrystalline products and rising overseas demand, the company’s comprehensive gross profit margin in the first half of the year.

22%, an increase of 3 per year.

60 units.

In addition, the company’s net operating cash flow for the first half of the year was 24.

27 ppm, an increase of 107 a decade ago.

63%, showing better earnings quality.

R & D leads to cost reduction and efficiency improvement, and the production capacity continues to accelerate: the company continues to expand research and development investment, and the third-generation PERC battery single / double-sided battery conversion efficiency is improved by 0.

More than 3%, while further reducing costs through process upgrades and other methods, the non-silicon cost of silicon wafers in the first half of the year gradually decreased by 31.


In addition, the company is accelerating the rate of productivity growth. According to the overall development progress, the company’s wafer capacity is expected to reach 65GW by the end of 2020, one year ahead of the original planned time.

At present, Chuxiong’s 10GW silicon wafers (Phase 1) and Luzhou’s 5GW module production capacity have been completed. Yunnan’s second-phase single-crystal silicon rods and wafer projects are accelerating.

It is estimated that under the current equity, combined with the company’s interim report and industry supply and demand, we will adjust the company’s forecasted earnings for 2019-2021 to 1.



25 yuan (the original forecast was 1.)



95 yuan), corresponding to a market surplus of 19.


0/12.4x; maintain BUY rating.

The main risks faced 重庆耍耍网 by the rating are policy risks; the industry demand is not up to expectations; the cost reduction is not up to expectations; the capacity digestion is not up to expectations.