\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 438 Tongwei Co.Ltd(600438) )
Announcement:
The company released its annual report for 2021, and achieved a revenue of 63.491 billion yuan, an increase of 43.64% at the same time; The net profit attributable to the parent company was 8.208 billion yuan, an increase of 127.5% at the same time; Deduct non net profit of RMB 8.486 billion, an increase of 252.35% at the same time. The company achieved revenue of 24.685 billion yuan in 22q1, an increase of 132.49% at the same time; The net profit attributable to the parent company was 5.194 billion yuan, an increase of 513.01% at the same time; Deduct non net profit of RMB 5.135 billion, an increase of 544.95% at the same time.
Comments:
1. The positioning of the company is clear, and the leading position of silicon material and battery chip industry is stable. In the silicon material and battery industry, the company has leading advantages in scale, technology, cost and quality. In 2021, the company’s output of high-purity crystalline silicon ranked first in the world, the Chinese market share reached 22% (CPIA Statistics), and the battery shipment ranked first in the world for five consecutive years (pvinfolink Statistics). At the same time, the company adheres to the professional division of labor strategically, and will not spend too much time on integration. Instead, the company focuses on the development of silicon materials and battery chips, so as to continuously maintain its competitive advantage and maintain its leading position in the industry.
2. The profit of silicon material business is at a high level in the industry, and the volume exceeds expectations. In 2021, the company’s revenue from high-purity crystalline silicon and chemical business was 18.761 billion yuan, a year-on-year increase of 186.89%. The sales volume of silicon material business was 107700 tons, with a year-on-year increase of 27.3% and a gross profit margin of 71.8%. At the same time, the annual production capacity operated safely and stably, and the utilization rate of silicon material production capacity reached 129.91%, far exceeding the industry average level.
3. Battery manufacturers generally lose money, but the company makes profits. The company has long attached great importance to technology research and development and formed differentiated competitive advantages in the industry. In 2021, the company will focus on cross sector linking and integration in the process of mass production and introduction of new technologies and new products in the field of battery chips. Thanks to the in-depth strategic cooperation with upstream and downstream and the leading quality and cost control advantages, during the reporting period, the company’s capacity utilization rate still reached 99.47% despite the sharp reduction in the operating rate of the industry, and the company’s sales volume continued to grow at a high speed, reflecting the company’s strong anti risk ability. At the same time, it maintained profitability throughout the year and achieved a profit level of 16-17 yuan per kW under the condition of general losses of friends in the industry.
Investment suggestion: Although the substantial expansion of silicon material production in the industry this year may bring a certain impact on the supply side, and the mainstream route of battery chips in the future is still unclear, it is expected that the company will obtain excess advantages with excellent management team, rich management experience and strong technical heritage, and see that the company’s silicon material and battery business will continue to grow at a high speed this year. It is estimated that the operating revenue of Tongwei Co.Ltd(600438) 22 and 23 years will be 95.3 billion yuan and 91.7 billion yuan respectively, the net profit attributable to the parent will be 17.8 billion yuan and 12.7 billion yuan respectively, and the growth rate of net profit attributable to the parent will be 117% and – 28.8%. Maintain a “recommended” rating.
Risk warning: the downstream demand is less than the expected risk, and the company’s production capacity is less than the expected risk
