\u3000\u3 China Vanke Co.Ltd(000002) 610 Jiangsu Akcome Science And Technology Co.Ltd(002610) )
Event:
The company released its annual report for 2021 on April 13, 2022, realizing an operating revenue of 2.531 billion yuan, a year-on-year decrease of 16.16%; The net profit attributable to shareholders of listed companies was – 406 million yuan, a decrease of 423 million yuan compared with the same period last year, and the net cash flow from operating activities was 536 million yuan, a decrease of 48 million yuan compared with the same period last year. In 2021, the impairment of assets and credit totaled 188 million yuan, resulting in less than expected profits.
Comments:
Suppressed by high priced silicon materials, the company’s gross profit margin decreased
In 2021, the company’s comprehensive gross profit margin was 2.43%, a year-on-year decrease of 12.44pct. Affected by the price of selling high gross profit power stations and high silicon materials, the company’s comprehensive gross profit margins from Q1 to Q4 were 9.71% / 1.30% / 2.11% / – 1.69% respectively. In 2021, the company’s net interest rate was – 16.59%, a year-on-year decrease of 17.57pct, of which the net interest rates from Q1 to Q4 were 1.66% / – 9.05% / – 7.04% / – 59.48% respectively. Affected by the company’s provision for impairment of old production lines, inventories and credit impairment, the net interest rate decreased significantly in the fourth quarter. The net profit attributable to the parent company in 2021 was -406 million yuan, a decrease of 423 million yuan compared with the same period last year. The net profit deducted from non parent company in this year is 540 million yuan, and the sale of photovoltaic power station assets and equity constitutes the main non recurring income.
Business layout adjustment, light pack, focus on Heterojunction manufacturing
In 2021, the company’s battery module business revenue increased by 85.49% year-on-year, becoming the largest source of revenue. During this period, a total of 381.5mw photovoltaic power stations were sold to collect money to focus on the construction and R & D of heterojunction production lines. At the end of 2021, the company’s monetary capital reserve exceeded 1.1 billion yuan, which was enough to support the continuous expansion of hjt production line. Yuhang financial holding’s entry into the bureau also reflects the company’s hjt technical strength and financial stability. Relying on its advantages in the field of photovoltaic auxiliary materials and leading heterojunction technology accumulated for more than 15 years, the company will promote cooperation with China Resources Power and zheneng group to realize the landing and transformation of high-efficiency heterojunction module sales. At present, the average conversion efficiency of hjt battery produced by the company is 24.5%, the double-sided rate is more than 95%, and the average yield is 99%.
Silicon material production capacity continues to be released, and the company’s profit end will be improved quarter by quarter
On April 13, the price of silicon material rose for 13 consecutive weeks, with the highest average price reaching 251.5 yuan / kg, returning to the high price. However, with the continuous release of production capacity of Tongwei, Daquan, Xinte and other leading silicon material enterprises in the second and third quarters, we believe that the rise of silicon material price is expected to end and start the downward cycle. The redistribution of profits in the industrial chain will continue to benefit the battery and module links, the company’s gross profit margin will return to the normal level, the yield will rise, the superimposed heterojunction technology will continue to mature, and the company’s hjt battery module yield will improve quarter by quarter.
High end talents accelerate the mass production of heterojunction
The company has introduced nearly 10 hjt leading talents, including the general director of the “National 863 high efficiency heterojunction Cecep Solar Energy Co.Ltd(000591) battery project”, the Chinese Academy of Sciences and the main inventors of heterojunction, which will cover all links of hjt battery technology research and development, industrialization, cost reduction and so on. The company has a forward-looking layout of heterojunction, has mature hjt technology reserves, has the first mover advantage, and has multiple cost reduction routes such as silver clad copper, electrosectord copper and slicing.
Profit forecast and investment suggestions
The company is a leader in heterojunction battery components. It will have 8.27gw of battery capacity in 2022. It takes the initiative to jointly develop battery component capacity with state-owned enterprises, which is expected to accelerate the implementation of orders. We estimate that the company’s revenue from 2022 to 2024 will be 89.0/168.2/28.14 billion yuan respectively, EPS will be 0.02/0.27/0.39 yuan / share respectively, and the corresponding PE will be 134.7/12.0/8.2 times. We give the company 30-40 times PE in 23 years, target price will be 8.1-10.8 yuan, and maintain the “buy” rating.
Risk tips
The growth rate of photovoltaic installed capacity was lower than expected, and the rhythm of heterojunction mass production of the company was delayed
