\u3000\u3000 Shuangliang Eco-Energy Systems Co.Ltd(600481) (600481)
Event: Shuangliang Eco-Energy Systems Co.Ltd(600481) issued the announcement on signing major sales contracts by wholly-owned subsidiaries. A silicon wafer supply contract was signed with Tongwei, and a breakthrough was made in 210 silicon wafer orders. New entrants to silicon wafers were fully recognized by the downstream, with an order amount of nearly 50 billion yuan on hand. According to the announcement of the company, Shuangliang silicon material Tongwei Cecep Solar Energy Co.Ltd(000591) , a wholly-owned subsidiary of the company, signed a silicon wafer frame sales contract, which agreed that the company would sell 1.048 billion large-size silicon wafers to Tongwei from January 2022 to December 2024, with an estimated sales amount of 6.305 billion yuan (including tax). According to the latest quotation published by pvinfolink on January 12, the sales volume of 210 silicon wafers in the contract was about 94 million, 182. The sales volume of silicon wafers is about 954 million. Prior to this, the company has signed silicon wafer (silicon rod) sales contracts with six manufacturers such as Atlas, aixu and Runyang Yueda, which has been fully recognized by downstream customers. At present, the company’s total orders on hand are about 47.736 billion yuan, which can provide order support for the subsequent launch of new production capacity. The fixed increase has been approved, the expansion of silicon wafer production has been accelerated, and the company is expected to usher in accelerated growth. On January 11, the company’s application for fixed increase was officially approved by the development and Examination Committee of the CSRC. The proposed fund-raising is no more than 3.488 billion yuan, of which 3 billion yuan is used for the production expansion of 20GW monocrystalline silicon wafer in phase I, and 488 million yuan is used to supplement working capital. At present, the company accelerates the expansion of silicon wafer business. It is expected that by February 2022, the company’s production capacity will be gradually increased to 7gw. In order to ensure the timely supply of single crystal furnace equipment, the company will further purchase single crystal furnaces from Zhejiang Jingsheng Mechanical & Electrical Co.Ltd(300316) at the end of 2021. The total contract amount of the first and second batch of single crystal furnaces will be increased from RMB 1.405 billion to RMB 2.243 billion, and the delivery is required to be completed before May 2022, According to the investment of 140 million yuan / GW of single crystal furnace, the corresponding production capacity of the company’s locked single crystal furnace equipment has been increased from 10GW to 16GW, and the expansion of silicon wafer production of the company may be accelerated.
Equipment business orders continued to boom, boosting the high growth of performance in 2021. Recently, the company issued the announcement of performance increase in 2021. Driven by the expansion of polysilicon industry since 2021, the orders of the company’s reduction furnace, its skid, heat exchanger and a series of new energy equipment have increased significantly and have been delivered successively. In addition, under the background of dual carbon transformation and dual control of energy consumption, the orders of energy-saving and water-saving products have increased rapidly driven by customers’ demand for energy conservation and emission reduction, It is estimated that the net profit attributable to the parent company in 2021 will be RMB 285-325 million, with a year-on-year increase of 107.40% – 136.50%. During the reporting period, the impact of non recurring profits and losses on the company’s net profit is expected to be RMB 75-85 million, mainly due to the government subsidies obtained by Shuangliang silicon materials (Baotou) Co., Ltd. in this period. The company’s corresponding net profit attributable to the parent company after deducting non recurring profits in 2021 is RMB 210-250 million, a year-on-year increase of 107.78% – 147.36%, still more than doubling.
Profit forecast: the company is expected to realize a net profit attributable to the parent company of RMB 300, 702 and 974 million from 2021 to 2023, corresponding to 55.1, 23.5 and 17.0 times of the valuation, and maintain the “overweight” rating.
Risk tip: the industry demand does not meet expectations and the company’s production capacity does not meet expectations.
