\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 481 Shuangliang Eco-Energy Systems Co.Ltd(600481) )
The company’s 22q1 profit exceeded expectations
The company released the first quarterly report of 2022: in 2022q1, the company achieved a revenue of 1.734 billion yuan, a year-on-year increase of + 299.50%; The net profit attributable to the parent company was 121 million yuan, a year-on-year increase of + 340.80%; The net profit attributable to the parent company after deduction was 101 million yuan, a year-on-year increase of + 638.43%.
The capacity of silicon wafer phase I project climbed smoothly, and the construction progress of phase II exceeded expectations
The company’s monocrystalline silicon phase I project has achieved 8GW production capacity and shipped 0.9gw in the first quarter. 5 Aluminum Corporation Of China Limited(601600) type single crystal furnaces (about 8GW capacity) of the company’s No. 1 single crystal plant in Baotou have been fully put into operation, and about 0.9gw of silicon rods / wafers (182 / 210mm) have been shipped in the first quarter of 22 years. The company expects to realize the annual production capacity of 20GW + as soon as possible within 22 years, and arrange the production of n-type silicon wafers.
The company started the construction of phase II project, and the progress exceeded expectations. The company’s monocrystalline silicon phase II project (20GW) was started on April 6, with a total investment of 6.2 billion yuan. The construction period is expected to be two years. At present, the construction progress is higher than expected and is gradually put into operation. The company expects to achieve an annual capacity of 40gw + as soon as possible by 2023.
Cooperate with Yujing in slicing business to complement each other’s advantages and win-win cooperation
The company has established a joint venture with Yujing and Jiangsu Yongxin. The company holds 20% of the shares and jointly invested in the construction of 25gw large-size silicon wafer project, which landed in Yancheng to carry out slicing business. We believe that the cooperation between the company and Yujing will form industrial chain coordination, make full use of the advantages of both sides in the photovoltaic industrial chain, and help to ensure the company’s chip production capacity.
Layout components, improve the company’s industrial chain layout, and complete the project filing of 5GW in phase I
The company has set up a wholly-owned subsidiary Shuangliang Xinneng Technology (Baotou) to invest and operate 20GW high-efficiency photovoltaic module project, of which the total investment of 5GW photovoltaic module in phase I is expected to be 1.5 billion yuan and the construction period is two years. The module product specifications mainly include 550W and 660w. At present, the phase I project has been completed for filing. We believe that the company’s component business will improve its industrial chain layout, coordinate upstream and downstream industrial resources, ensure the stable development of the enterprise, and create a new driving force for the company’s performance growth.
Profit forecast and investment suggestions
It is estimated that the operating revenue of the company from 2022 to 2024 will be RMB 129.72 billion, RMB 15.916 billion and RMB 19.017 billion respectively, with a year-on-year increase of 238.7%, 22.7% and 19.5% respectively; The net profit attributable to the parent company was 923 million yuan, 1527 million yuan and 2.075 billion yuan respectively, with a year-on-year increase of 197.6%, 65.5% and 35.9% respectively. The current share price corresponds to 18, 14 and 10 times of PE from 2022 to 2024 respectively. Maintain the “buy” rating.
Risk tips
Silicon wafer capacity expansion is less than expected risk; Policy fluctuation risk of photovoltaic industry; The risk of intensified market competition.
