Tongwei predicted that the profit doubled last year, and the "volume" and "profit" increased together under the first development and expansion of production

Tongwei Co.Ltd(600438) (600438. SH) issued a pre increase announcement on the performance of 2021 at the weekend. It is expected that the net profit attributable to the shareholders of the listed company will be 8-8.5 billion yuan in 2021, with a year-on-year increase of 122% - 136%.

Tongwei Co.Ltd(600438) since 2006, it has transformed into new energy and entered the photovoltaic polysilicon link with the upstream polysilicon link as the entry point. In 2013, it officially entered the photovoltaic cell link by acquiring Hefei Saiwei and changing its name to Tongwei Cecep Solar Energy Co.Ltd(000591) . In 2019, the company's battery cell capacity reached 20GW, ranking first in the world, with a capacity market share of 10%. By the end of 2021, the polysilicon production capacity reached 180000 tons, ranking first in the world, accounting for 23% of the market.

According to the latest performance pre increase announcement, the company's profit doubled in 2021, mainly benefiting from the growth of downstream demand. In 2021, the supply of high-purity crystalline silicon products exceeds the demand, and the market price increases significantly year-on-year. At the same time, the company's high-purity crystalline silicon production capacity continued to operate at full capacity, the production and sales volume increased year-on-year, and various production indicators were further optimized, so the profit increased significantly.

According to the company's announcement and Zheshang Securities Co.Ltd(601878) prediction, based on its judgment on the upward prosperity of the photovoltaic industry and its own production cost advantages, the company will greatly expand its production in the links of silicon and battery in the next two or three years. It is estimated that the polysilicon production capacity will reach 330000 tons by the end of 2022, the market share of global production capacity will rise to 25% - 30%, and the battery production capacity will reach 55gw, keeping the world leading.

Zheshang Securities Co.Ltd(601878) pointed out in the review of the research report released today that with the rapid expansion of Tongwei Co.Ltd(600438) and the cost advantage, the silicon material performance will maintain high growth.

The first financial reporter found that Tongwei Co.Ltd(600438) in Leshan phase II and Baoshan phase I, a total of 101000 tons of silicon material capacity has been put into operation and climbing in the fourth quarter of 2021. The current nominal capacity has exceeded 180000 tons, significantly ahead of the industry. In addition, the newly expanded 50000 tons of Baoshan phase II and 100000 tons of Leshan phase III will be put into operation by the end of 2022. At that time, the company's nominal capacity will reach 330000 tons, of which the effective capacity is expected to exceed 230000 tons.

In terms of cost, Zheshang Securities Co.Ltd(601878) believes that the low production cost of Tongwei Co.Ltd(600438) silicon material can effectively ensure the profitability of the company's silicon material and help the company through the cycle in the future.

(source: First Finance)

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