Zhonghuan (002129): PV + semiconductor two-wheel drive has huge development potential

Zhonghuan (002129): PV + semiconductor two-wheel drive has huge development potential

Event: The company announced the semi-annual report for 2019: revenue of 79 in the first half of 2019.

4 ppm, an increase of 22 in ten years.

9%, net profit attributable to mother 4.

500 million, an increase of 50 in ten years.

7%, after deducting non-realized net profit attributable to mother.

50,000 yuan, an increase of 58 in ten years.


Photovoltaic + semiconductor two-wheel drive, sustained and rapid growth in performance The company achieved rapid growth in the first half of its performance, initially: 1) The photovoltaic business grew rapidly, and the new energy business achieved revenue of 72 in the first half.

7 ppm, an increase of 23 in ten years.


Benefiting from the progress of single crystallization in the industrial chain, the company has leveraged the bargaining advantages of single crystal products, and its profitability has steadily improved.

2) The semiconductor business is progressing smoothly, and the semiconductor business achieved revenue in the first half of the year5.

80,000 yuan, an increase of 19 in ten years.


The company actively develops international customers. In the first half of the year, the sales ratio of first-class international customers has more than doubled.

At the same time, the production line project is steadily advancing. The 8-inch silicon wafer expansion project at the Tianjin plant has achieved a design capacity of 300,000 wafers / month. The 12-inch test line continued its R & D work concurrently in February, and the production line at the Yixing plant was imminent.

3) Through strict cost control, the company effectively implemented lean management, continuous improvement of internal operation management and intelligent manufacturing, and continuous release of advantageous production capacity, which 杭州桑拿 effectively reduced operating costs and continued to improve profitability.

In the first half of the year, the company’s net interest rate was 7.

7%, an increase of 2 from the previous year.

3pct, a new high.

Kuafu M12 series large silicon wafers are released, and the photovoltaic business goes to a new level. The company recently released the “Kwafia” series M12 photovoltaic single crystal silicon wafers, an increase of 80 compared to M2 area.

5%, the theoretical calculation will reduce the cost of electricity by more than 6%, the corresponding module power can reach 600W, greatly improving the production efficiency of cell and module manufacturing.

The company’s Air Force and Hohhot City signed an investment of 9 billion US dollars to build a 25GW project in Central V. It is expected to invest in M12 large-size silicon 武汉夜生活 wafer production lines.

Through technological transformation, the company has increased the monocrystalline silicon wafer production capacity from 25GW in 18 years to 30GW, superimposed on the construction of the Central Phase V project, and will gradually form a 55GW wafer production capacity, and gradually continue to use the single crystal route to replace the photovoltaic parity dividend, and the performance continues to be high.Growth can be expected.

The non-public issuance was approved, and the semiconductor business welcomes the company’s deep technology accumulation in large silicon wafers, and has become a leading domestic semiconductor wafer company.

The company’s 8-inch silicon wafer technology is mature and mass production has been achieved. The Tianjin plant’s production line is fully full. The 12-inch silicon wafer technology is leading and is in the certification stage.

The company’s application for raising funds for non-public issuance of stocks passed the review. It is planned to raise US $ 5 billion for 8-12-inch semiconductor silicon wafer production line projects. After reaching production, 750,000 wafers / month 8-inch and 150,000 wafers / month 12-inch semiconductor silicon will be formed.Film capacity.

The company’s semiconductor business is expected to deeply benefit from domestic substitution and become a new driving force for performance growth.

Profit forecast and investment recommendations
In 2021, the EPS will be 0.

40 yuan, 0.

62 yuan, 0.

83 yuan, the corresponding PE is 29.

8 times, 19.

3 times, 14.

5 times.

Give the company a “Buy” rating.

Risk warnings: The photovoltaic market is less than expected; capacity diffusion is less than expected; and the price of the industrial chain is volatile.