Zhonghuan (002129): Stable development of photovoltaic business and active layout of large silicon wafers

Event: The company recently released its 2018 performance report and achieved total operating revenue of 13,855,173,021.

65 yuan, an annual increase of 43.

66%; realized operating profit of 756,609,717.

31 yuan, an annual increase of 16.

53%; net profit attributable to shareholders of listed companies was 600,838,616.

91 yuan, an annual increase of 2.


Seize the potential of localization of silicon wafers, mass production of 12-inch large silicon wafers is imminent.

At present, domestic 12-inch silicon wafers basically rely on imports. Through the 杭州桑拿 rise of new demand such as the Internet of Things, artificial intelligence and new energy vehicles, the demand for silicon wafers will increase.

The state is currently implementing policies, funding and technology research and development to vigorously promote the process of domestic silicon substitution.

In this environment, the company actively seized the opportunity to expand its layout in Mongolia, Tianjin, and Jiangsu. According to the company’s January 2019 announcement, the company planned to invest $ 5 billion in Wuxi integrated circuit projects and build 750,000 8-inch polished lensesAnd 1250,000-inch polishing film production line with a monthly production capacity of 150,000 pieces, with a construction period of 3 years.

The photovoltaic industry has a bright future, and monocrystalline wafer prices have started to pick up.

According to the national energy development planning plan, it is expected that photovoltaic parity will be fully implemented online after 2020.

At the same time, according to CCCME statistics, in 2018, India, the United States, the European Union and some emerging markets have broken the local crop gap, which is China’s main export market for photovoltaic products.

Driven by strong overseas demand, the company’s orders are full, and a price increase was conducted at the end of January.

Based on the development of the industry, the company actively expands the capacity of monocrystalline silicon wafers.

According to the company’s announcement, the fourth phase of the photovoltaic project has all reached production, and it is estimated that the production capacity will reach 23GW in 2019.

At the same time, the company’s multi-channel layout has actively carried out the development of photovoltaic poverty alleviation power plants and spontaneous self-use distributed power stations to avoid the single commercial power station development model.

Investment suggestion: It is expected that the company’s revenue from 2019 to 2020 will be 183.

6.6 billion, 240.

1.9 billion, with a net profit of 9.

8.6 billion, 14.

One million yuan.

Target price of 13.

50 yuan, give Buy-A rating.

Risk reminder: The PV market is weaker than expected, and the wafer production progress is slower than expected.