Longji shares (601012) 2018 annual report and 2019 first quarterly report comments: steady growth in the first quarter performance is expected to continue to rebound in the second quarter

Longji shares (601012) 2018 annual report and 2019 first quarterly report comments: steady growth in the first quarter performance 南京夜网 is expected to continue to rebound in the second quarter
Report reading event: The company released the 2018 annual report and the 2019 first quarter report, and the company achieved revenue of 219 in 2018.900 million (previously +34.3%), net profit attributable to mother 25.5.8 billion (short-term -28.twenty four%).In the first quarter of 2019, the company achieved revenue of 57.100 million (previously +64.6%), net profit attributable to mother 6.1.1 billion (previously +12.5%). Investment point 531 policy affects 18-year profitability, and the company’s stable growth in the first quarter of 19 achieved a revenue of 219 in 2018.880,000 yuan, an increase of 34 in ten years.38%; Net profit attributable to shareholders of listed companies.5.8 billion, down 28 a year.twenty four%.The rapid growth of performance mainly benefited from the rapid growth of product expansion, of which silicon wafer replacement volume34.8.3 billion tablets, an increase of 58 each year.53%, single crystal battery and module assembly volume 7.07GW, an annual increase of 50.43%; However, due to the impact of the domestic 531 policy, the price of photovoltaic products has decreased, and the company’s product gross profit margin has fallen, including the monocrystalline silicon wafer’s gross profit margin.4 pieces to 16.27%, single crystal module gross margin decreased by 6.9 pieces to 23.83%; as a result, the company’s profitability has dropped and net profit has been reduced to 23 after deduction.400 million, down 32 before.4%.Benefiting from the stimulus of overseas demand in 2019 and the continuous replacement of polycrystalline by single crystal, the company’s first quarter performance in 2019 maintained rapid growth and realized operating income in the first quarter of 201957.100,000 yuan, an increase of 64 in ten years.56%; realized return to mother’s profit6.11 ppm, an increase of 12 in ten years.5%.The gross profit margin is 23.54%, net interest rate 11.74%, compared to 18 years (gross margin 22).25%, net interest rate 11.67 %%), the gross profit margin and net profit margin of sales increased, and profitability improved. The firmness of wafer prices in the second quarter is expected to improve profitability and expand overseas markets to accelerate component volume. 1) The supply and demand of monocrystalline wafers will continue to tighten in the second quarter, and monocrystalline wafer prices are expected to remain firm.The supply and demand of single crystal silicon wafers has been tightly balanced, and the prices of major companies ‘single crystal silicon wafers have risen in price. Domestic market companies’ monocrystalline silicon wafers have a tax-included price of 3 on February 22.05 yuan / piece increased to 3.15 yuan / piece, April 1 due to the implementation of post-manufacturing tax reduction policies, product prices replaced 3.07 yuan / piece, excluding tax, the price remains 2.716 yuan / piece unchanged; overseas markets, after-tax prices domestic products after-tax prices unchanged, overseas market product prices increased to 0 twice this year.USD 415 / piece; According to our forecast, the supply and demand of single crystal silicon wafers in the second quarter will be tightly balanced. We believe that the price of single crystal silicon wafers in the second quarter will help maintain firmness.At the same time, the prices of upstream raw materials continued to decrease, reducing the cost of silicon materials, improving production technology, reducing the cost of non-silicon wafers, and overall reducing the cost of wafer production. The profitability of wafers continued to increase in the second quarter. 2) Accelerate the expansion of overseas markets and continue to increase the volume of components.In 2018, the company expanded the development of overseas markets and channel construction, “5.The introduction of the “31 New Deal” stimulated the rapid growth of overseas sales of monocrystalline modules. In 2018, the company’s overseas monocrystalline module sales reached 1962MW, which increased by 370%. The demand for overseas modules continued to increase in the first quarter of 2019.Domestic component exports reached 14.9GW is the highest in history. Overseas demand will continue to be strong in 2019, and the company’s overseas component sales will promote rapid growth. Start a new round of production expansion plan to expand the future 2?The three-year development foundation announced a new round of capacity planning. The company ‘s capacity expansion has steadily advanced. It is planned that by the end of 2019-2021, the monocrystalline silicon rod / wafer capacity will reach 36GW, 50GW, and 65GW; the monocrystalline cell capacity will reach 10GW, 15GW, and 20GW;Monocrystalline battery capacity reached 16GW, 25GW, 30GW.In addition, the company’s rights issue has been completed. The Ningxia Leye 5GW monocrystalline battery project and the Luzhou Leye 5GW monocrystalline module project have been steadily advancing. At the same time, the Yinchuan government broke through the 15GW monocrystalline silicon rod and wafer and the 3GW monocrystalline battery project investment agreement.The project has been advanced initially, and the company’s new round of production expansion is gradually progressing.The foundation of the company’s performance development in 3 years, while consolidating the company’s single crystal leading position. Profit forecast and forecast The company’s silicon wafer and module business are developing rapidly. It is estimated that the company’s operating income will be 303 in 2019-2021.0ppm, 379.9 ppm, 449.40,000 yuan, an increase of 37 in ten years.79%, 25.38%, 18.30%; net profit attributable to mothers is 37.7.7 billion, 51.6.8 billion, 62.30 ppm, a 47-year increase of 47.69%, 36.81%, 20.53%; EPS is 1.13 yuan, 1.43 yuan, 1.72 yuan, corresponding to 20 for PE.1 times, 15.9 times / 13.2 times.As the leader in the domestic single crystal field, the company is replacing monocrystalline with polycrystalline. We are optimistic about the future development of the company and maintain the “overweight” proposal. Risk warning: The price of raw materials fell less than expected; the price of silicon wafer fell more than expected; the subdivision of components failed to meet expectations;