Longji (601012): Accelerated growth in performance and steady pace of production capacity

Longji (601012): Accelerated growth in performance and steady pace of production capacity
Core point of view: The third quarter results are in line with the Air Force’s forecast, and continue to maintain high growth.93 trillion, +54 for ten years.68%, net profit attributable to mother 34.8.4 billion, previously + 106%, net of non-attributed net profit 34.11 ‰, +114 for ten years.62%.The third quarter revenue was 85.82 ppm, +83 a year.8%, net profit attributable to mother 14.750,000 yuan, +283 a year.The growth 佛山桑拿网 rate is 85%, which is a substantial increase of 200pct, and the performance is in line with the company’s performance forecast. Proposed issue of convertible bonds, improvement of industrial layout, optimization of capital structure The company announced plans to issue no more than 5 billion convertible bonds for Yinchuan’s annual production of 15GW single crystal silicon rods, wafer projects and Xi’an Weiwei New City’s annual production of 5GW single crystal battery projectsConstruction, new projects will effectively increase the company’s monocrystalline silicon wafer and battery production scale, make up the company’s shortfall in monocrystalline battery series production capacity, and improve the industrial layout.In addition, the raised funds effectively solved the capital gap caused by the expansion of the company’s operating 南京桑拿网 scale, which helped improve the company’s research and development strength, optimize the capital structure, and reduce financial risks, thereby improving the company’s overall competitiveness and ability to resist risks. The potential of overseas business has broken through. The production capacity has steadily expanded to occupy high-level companies in the industry and overweight the overseas market. The proportion of revenue has continued to increase, reaching 32 in 2018.7%, +72 per year.0%, from January to June 2019, the company’s overseas monocrystalline module sales reached 2.423GW, previously + 252%, accounting for 76% of the total external sales of monocrystalline modules.The company’s production capacity continues to expand. According to the 2019 Interim Report, it is planned that the wafer / battery / module production capacity will reach 65/20 / 30GW in 2021, and the 65GW wafer production capacity can be reached by the end of 2020.We believe that due to the high growth of overseas markets and perfect overseas sales channels, the company is expected to achieve sales smoothly. It is expected that the results for 19-21 will be 1.20 yuan / share, 1.68 yuan / share, 2.The 10 yuan / share is expected to be 1 in 2019-2021.20/1.68/2.10 yuan / share, calculated based on the company’s closing price on October 30, 2019, the corresponding PE is 19 respectively.01X / 13.61X / 10.88X.We are optimistic about the company’s potential in the monocrystalline silicon wafer and module business, and give the company a PE performance estimate of 25 times in 2019, corresponding to a reasonable value of 30.04 yuan / share, continue to give a buy rating. Risks prompt policy risks in the photovoltaic industry. Global new photovoltaic installations did not meet expectations and the company’s sales did not meet expectations.