Longji shares (601012) 2019 interim report performance preview comment: the amount of profits and Qi Qi boost the company ‘s interim report performance exceeded expectations

Longji shares (601012) 2019 interim report performance preview comment: the amount of profits and Qi Qi boost the company ‘s interim report performance exceeded expectations
Company dynamics The company issued an announcement of the 2019 semi-annual results increase.The company estimates that the net profit attributable to shareholders of listed companies for the first half of 2019 will be 19.6.1 billion to 20.USD 9.1 billion, an increase of 50% -60% each year; net profit after non-deduction is expected to be 19.4.1 billion to 20.7.1 billion yuan, an annual increase of 55% -65%. Matters commented on silicon wafers, the volume of components rose, and the company’s performance in the second quarter of 2019 exceeded expectations. The company expects to achieve net profit attributable to its mother in the first half of 2019.6.1 billion to 20.9.1 billion yuan.According to our calculations, the company achieved net profit attributable to mothers in Q2 201913.5 billion to 14.8 billion yuan, an annual increase of 77% -94%, a chain growth of 121% -142%.In the second quarter of 2019, the company’s main products were monocrystalline silicon wafers, the volume of photovoltaic modules rose, the volume of transfers, and profitability showed an increase. We expect the company’s monocrystalline silicon wafer sales to be about 1.2 billion in the second quarter of 2019, an increase of about 190% per year; driven by the trend of upstream silicon material prices and the continuous reduction of the company’s non-silicon costs, the company’s silicon wafer business gross margin in the second quarter was approximately27%, a month-on-month increase of 5.5 averages.On the component side, we expect the company to integrate about 2GW of modules in the second quarter, which is a 50% increase from the previous quarter and a gross profit margin of about 28.8%, an increase of 4 mergers, mainly due to factors such as the decline in upstream battery prices and the growth in overseas sales of modules. Domestic supplementary bidding results are released, and demand will start on July 11. The National Energy Administration announced the results of the national supplementary bidding for photovoltaic power generation projects in 2019.There were a total of 3921 projects in the national bidding compensation scope this year, corresponding to an installed capacity of 22.79GW.The Energy Bureau also released an installed scale indicator. About 40-45GW will be completed and connected to the grid within the year (about 30GW in the second half of this year). Domestic installed demand is about to start. At that time, the supply of silicon wafers will gradually tighten, which will further enhance the company’s profitability. Short-term overseas supply contracts, benefiting from the growth of global photovoltaic installed capacity On July 16, the company issued an announcement to shorten the contract with Vietnam Battery Technology Co., Ltd. and Shanghai Yize New Energy Technology Co., Ltd. by 13.The sales contract for 100 million single crystal silicon wafers is estimated to be about 5.$ 400 million.Vietnam’s current photovoltaic installed capacity is about 4.46GW, an increase of nearly 400 times a year.We expect global photovoltaic replenishment installations to be about 120-130GW in 2019, of which about 85GW will be overseas.The company’s overseas sales of components accounted for over 70% in the first half of the year.After experiencing a short off-season, we believe that overseas demand is expected to gradually pick up at the end of the third quarter. Earnings Forecasts and Estimates We have raised the company’s earnings forecasts. It is expected that the company’s operating income in 杭州桑拿 2019, 2020 and 2021 will be 319.9.8 billion, 438.4.1 billion and 570.9.1 billion yuan, with growth rates of 45.53%, 37.01% and 30.22%; net profit attributable to shareholders of the parent company is 46.8.8 billion, 58.9.5 billion and 72.09 billion yuan, the growth rate was 83.29%, 25.73% and 22.30%; fully diluted earnings per share are 1.29, 1.63 and 1.99 yuan, corresponding to PE is 17.81, 14.17 and 11.58 times. As a leading company in photovoltaic wafers and modules, the company has significant advantages in scale, cost, and technology. It has benefited from domestic demand and overseas markets, and its profitability has continued to improve.In the next six months, maintain the company’s “overweight” rating. Risks suggest that photovoltaic installations are less than expected, changes in international trade prospects,杭州桑拿网 and capacity releases are not as expected.