Longji shares (601012): Interim report profit forecast range slightly exceeds market expectation to benefit 2Q12 module gross margin increase

Longji shares (601012): Interim report profit forecast range slightly exceeds market expectation to benefit 2Q12 module gross margin increase
The company’s forecast for the 2019 interim profit will increase by 50-60% each year. Longji shares will issue a 2019 interim report, and the net profit attributable to shareholders of the parent company is expected to be 19.61-20.910,000 yuan, an increase of 50-60% in ten years.In the second quarter, the gross profit margin of modules exceeded expectations, and the range of high wafer wafer growth and profit forecast growth slightly exceeded market expectations. Points of attention The company’s module gross profit margin increased to 28 in the second quarter.At 8%, silicon wafers are expected to approach 1.2 billion.The company’s first quarter profit increased 13% to 6 in ten years.1 trillion, considering the forecast range, implying that the profit growth rate in the second quarter is in the range of 77% to 94%, which is higher than market expectations.Benefit from the average price of single crystal modules in the second quarter remained flat at 1.97 yuan / watt, and the price of silicon materials fell 5% from the previous month, the company’s silicon wafer conversion 夜来香体验网 non-silicon costs have also replaced 0.83 yuan / piece, we expect the module gross margin may reach 28.The level of 8%, exceeding market expectations, is the initial profit exceeding expectations. At the same time, the gross profit margin of silicon wafers has also reached 26.9%.In addition, the external exchange volume of single crystal silicon wafers in the second quarter reached nearly 1.2 billion pieces, an increase of 20% from the first quarter, an increase of 164%, and exceeding the market’s expected level of 1 billion pieces, which also led to profit exceeding high growth.Six months after the termination, the company’s wafer capacity has been increased to 30 GW, and subsequent volume of wafer products will continue to support profitable growth. The initial long-term supply of silicon wafers continues to promote the increase in the market share of single crystals.The company announced a major contract announcement on the Internet for many years on July 17, reaching 13 with Vietnam Photovoltaic.100 million pieces of monocrystalline silicon wafers are available for long orders. The contract covers the period from July 2019 to the end of December 2021, which is equivalent to the annual order confirmation of 500 million pieces. The replacement level in the second quarter is approximately equal to one month’s full production orders.Promote the expansion of the single crystal market and lock in demand in advance for the company’s three-year silicon wafer production plan to reach 65 GW. Estimates and recommendations Considering that the final half-year profit has not yet been confirmed, we temporarily maintain the company’s expected profit forecast unchanged and adjust it after the interim report.Maintain target price of 27.25 yuan, 18% more room than currently expected, corresponding to 19/20 27.8/23.0 times price-earnings ratio.The company’s stock is currently trading at 23.04 yuan, corresponding to 19/20 23.5/19.4x price-earnings ratio.Maintain Outperform rating. Risks Overseas photovoltaic demand is below expectations; single-crystal ingot cost performance exceeds expectations