Tongwei (600438) annual report and first quarterly report comments: high-efficiency batteries continue to produce strong performance growth can be expected
Event: The company released its 2018 annual report and first quarter report. In 2018, the company initially achieved operating income of 2,753,517.30,000 yuan, an increase of 5 in ten years.53%; net profit attributable to shareholders of listed companies was 201,874.600,000 yuan, an increase of 0 in ten years.51%.In the first quarter of 2019, the company achieved operating income of 616,901.320,000 yuan, an increase of 18 in ten years.14%; realized net profit attributable to shareholders of listed companies 49,063.330,000 yuan, an annual increase of 53.36%. The production capacity of silicon material reached the production smoothly, and the cost reduction was obvious.According to the number of reports, in order to meet the growing demand for single crystal materials, Yongxiang continued to strengthen scientific and technological research and technological innovation, and effectively increased the proportion of single crystal materials while ensuring the steady increase in output and continuous leading cost replacement.The proportion can reach 70%.With 杭州桑拿网 Baotou, Leshan’s two “five-hole high-purity crystalline silicon and supporting new energy projects” Phase I projects have been put into production in the fourth quarter of 2018, and the company’s high-purity crystalline silicon production capacity has entered the top three global ranks.At the same time of scale growth, the new production capacity has taken full advantage of many years of technical accumulation and scientific research results, and has made dozens of optimizations and improvements in advanced process design and system operation reliability, and the production cost will be reduced by 4 million tons. The production capacity of battery cells ranks first in the world, further consolidating the advantages of scale.As of the end of the reporting period, Tongwei Solar ranked first in the global solar cell manufacturing 淡水桑拿网 industry with a capacity of 12GW.In March 2019, the company launched the fourth phase of Chengdu and Meishan new projects. It is expected that the company’s solar cell scale will reach 20GW by the end of 2019, which will further increase the concentration of the industry and consolidate the company’s scale advantage in solar cell scale.In terms of modules, Tongwei Solar has independently developed more than 420W high-efficiency shingled modules, and its 72-chip modules have a maximum power output of 421.9W, broke the PERC module world record, and obtained the test of Chengdu National Photovoltaic Product Quality Supervision and Inspection Center to verify that the module conversion efficiency can reach 20.7%. The fishery-light integrated project has been steadily launched.The company takes “Photovoltaics to change the world” as its core concept, and has the unique advantage of resource integration in photovoltaic terminals. It has formed an innovative development mode of fishing and light integrated with “upper power generation and lower fish farming”. This model improves the traditional photovoltaic power generationThe operation and income methods, combined with the company’s “365 healthy breeding model”, have expanded the field of photovoltaic technology application and formed the company’s unique core competitiveness.As for the investment cost of photovoltaic power plants, the company has been practicing the “543” cost strategy for many years. Through design optimization and technological innovation, it has reduced the investment cost of photovoltaic power plants year by year.At present, the comprehensive investment cost of the project has fallen from 6-7 yuan / W two years ago to less than 5 yuan / W; through continuous technological advancement and further optimization of the design plan, the cost will be replaced by 4 yuan / W in 2019, which will accelerate the overall speedAchieve the parity of Internet access and promote the sustainable and healthy development of the industry. Investment suggestion: The company’s photovoltaic sector continues to exert its strength, its capacity expansion is steadily advancing, its products are favored by the market, and its profitability continues to increase.It is expected that the company’s net profit for 2019-2021 will be 30.19, 37.29 and 42.0.94 million yuan, corresponding to EPS0.78, 0.96 and 1.11 yuan / share, corresponding to PE17, 14 and 12 times, given a “buy” rating. Risk reminder: less-than-expected capacity expansion and less-than-expected product sales.