Zhonghuan (002129): Performance growth and growth in photovoltaics, both semiconductor main industries are in rapid growth

Zhonghuan (002129): Performance growth and growth in photovoltaics, both semiconductor main industries are in rapid growth

Growth in performance and increase in gross profit margin The company released the third quarter report for 2019: the company achieved operating income of 120 in the first three quarters of 2019.

16 ppm (a ten-year increase of 29.

82%), net profit attributable to mother 7.

20,000 yuan (64 years growth 64.

84%), net profit after deduction 5

590,000 yuan (increased by 87 in ten years).


In Q3, it achieved operating income of 40 in a single quarter.

7.4 billion (45 years growth 45.

8%, down 1 from the previous month.

08%), net profit attributable to mother 2.

50,000 yuan (98 years growth 98.

6%, down 5 from the previous month.

57%), net profit after deducting non-return to mother 2.

50,000 yuan (174 increase in ten years.

35%, down 6 from the previous month.


Q3’s consolidated gross profit margin was 20.

51%, an increase of 3 per year.

47pct, an increase of 1 from the previous quarter.

68 points.

The volume expansion of photovoltaic monocrystalline silicon sheet is shrinking, and the higher consolidation and consolidation of the leader through the reduction of the cost of the photovoltaic system, the area of photovoltaics achieving parity in the world continues to expand, and the competitive advantage of photovoltaics over other energy sources is becoming increasingly prominent. Long-term developmentThe space is vast.

The company is currently one of the double-headers of photovoltaic monocrystalline silicon wafers. The company’s Inner Mongolia Phase IV and Phase IV transformation projects have all reached production, and the capacity of photovoltaic monocrystalline silicon materials has reached 30GW.

The fifth phase of the project is under construction, and the total capacity is expected to reach more than 55GW after commissioning.

The company’s photovoltaic large-size silicon wafers are at the forefront of the industry. In August 2019, the world’s first 12-inch photovoltaic silicon M12 series products were released. It is expected that large-scale commercial applications will be obtained downstream in 2020. It will further consolidate the company’s competitive advantages andLeader level.

Grasp the transfer probability of the semiconductor industry and optimize the product structure to achieve leapfrog development. The company is grasping the third period of semiconductor industry transfer and vigorously develops 8-inch and 12-inch silicon wafers. At present, 8-inch silicon wafers are already in a stable volume.The certification of major international clients has steadily advanced.

The company’s leading large-diameter integrated silicon wafer project (8-inch production line) in Yixing has officially started production. The 12-inch 天津夜网 production line is expected to move in in 2019Q4 and enter the trial production stage in early 2020. In the future, it will gradually reduce the use of large-scale integrated circuits.Wafer field blank.

With the transfer of the semiconductor industry to mainland China, there is huge space for domestic silicon wafer replacement. We are optimistic about the company’s future volume of 8-inch silicon wafers and the shift of 12-inch silicon wafers from customer verification. The company’s semiconductor business will also achieve leapfrog development.

Maintain “Highly Recommended” level: We expect the company’s net profit for 2019-2021 to be 12 respectively.

63, 17.

29, 23.

91 trillion, corresponding to EPS are 0.

45, 0.

62, 0.


Both the company’s photovoltaic and semiconductor main industries are in a rapid growth period. We are optimistic about the company’s photovoltaic wafer leader and semiconductor business development potential, and maintain a “strongly recommended” rating.

Risk warning: photovoltaic demand is less than expected, photovoltaic wafer prices are falling, and semiconductor projects and customer certification progress are less than expected