Tongwei (600438): Monocrystalline material proportion increased, high-efficiency cell capacity steadily expanded
Event: The company released its semi-annual report for 2019 and achieved revenue of 161.200 million (previously +29.4%), comprehensive gross profit margin 22.0% (twice +2.4pcts), net profit attributable to mother 14.50,000 yuan (ten years +58.0%).  The company’s three expenses and R & D expenses accounted for a total of 11.3% (decade +0.8pcts), in which financial expenses increased significantly, exceeding + 164% to 3.400 million (of which interest rate expenditure is about 2.800 million, an annual increase of more than 100%), mainly due to the initial issuance of 5 billion convertible bonds, the company’s total management costs and research and development costs and the proportion of operating expenses declined, showing the company’s good management and cost control capabilities.   Leading companies with high-quality feed material release and quality advantages have now reached 8 tons of high-substitute conveying capacity. Leshan and Inner 杭州桑拿网 Mongolia Baotou total 6 will gradually focus on raw material production capacity and put it into production. It is expected to contribute a significant increase in 2019.The monocrystalline silicon wafer production capacity continues to expand in 2019, driving demand for high-quality monocrystalline materials.The company’s scale 2 project expects that the proportion of single crystal materials has exceeded 80%, and the subsequent new expansion of production to improve quality and efficiency, it is expected that the company’s overall single crystal materials will reach 80% -85% in 2019.   Strengthen the layout of high-efficiency battery module production capacity and arrange the scheduling of heterojunction battery. By the end of June 2019, the company has accumulated 9GW single-crystal high-efficiency cell capacity. In 2019, the company started an 8GW high-efficiency PERC cell expansion project.20GW battery capacity will be formed in the year, and increased production capacity will be released to support the growth of the business of battery cells.The efficiency reaches 23%; the second-phase project is expected to be completed by the end of 2019, which will further optimize the product’s cost performance and help the company maintain its leading position in high-efficiency battery access.   We are optimistic about the company’s long-term development and maintain a “Buy” rating: Consider the concentration of PERC battery chips to accelerate the decline in battery prices.We lower the EPS for 2019-2021 to 0.77/0.97/1.15 yuan (the original value is 0.87/1.09/1.27 yuan), we long-term optimistic about the company’s advantages in battery chips and supplementary materials, and maintain a “buy” rating.   Risks suggest that the supply of supplementary materials is less than expected, and the release of high-efficiency battery capacity is lower than expected; the prices of raw materials and high-efficiency cells caused by the production capacity of the industrial chain have dropped significantly.