Longji shares (601012): Performance maintains high growth momentum and plans to issue convertible bonds again
Longji intends to publicly issue convertible bonds with a scale of no more than US $ 5 billion for Yinchuan’s annual production of 15GW single-crystal silicon rods, wafer projects and Xi’an Weiwei New City’s annual production of 5GW single-crystal battery projects. Main point of view: The third quarter report is in line with expectations, and its performance has maintained a high growth trend.The company released a three quarterly report on October 16th, which is expected to achieve net profit attributable to mothers in the first three quarters of 34.02 to 35.20,000 yuan, an increase of 101% to 107% per year.One of the main factors for the company’s profit growth is the continuous decline in the company’s production costs; in the first half of the year, the company’s non-silicon costs for silicon wafer production have been reduced through process improvements, equipment transformation and management improvements.75%, once again verified the company’s outstanding innovation management capabilities.This has also become an important support for the company’s continued expansion of production. The issuance of convertible bonds helps the company improve its capital structure and its ability to resist risks.Since 2019, the company has announced 10 monocrystalline investment construction projects with a total projected investment of 203.6.8 billion yuan.As of the end of June 2019, the company’s asset compensation had been re-56.54%, the financing structure is still dominated by indirect financing.Raising funds through the issuance of convertible bonds will effectively alleviate the financial pressure brought by the expansion of the company’s operating scale, at the same time strengthen the company’s research and development capabilities, optimize the capital structure, and reduce financial risks, thereby improving the company’s overall competitiveness and anti-risk capabilities. The steady expansion of production capacity will help the company to reach its business goals and consolidate the company’s industry leadership.The company merges the production technology and cost control advantages it has accumulated in the single crystal field, and has steadily expanded the production capacity of single crystal products. The current capacity under construction and the planned production capacity are still leading in the industry. It is expected that the market share will remain the first in the next few years.According to the company’s business plan, the company’s monocrystalline silicon wafers, battery wafers, and module production capacity will reach 36GW, 10GW, and 16GW, respectively, with a growth rate of 29%, 150%, and 82% in 2019. It is expected that they will reach 65GW and 20GW in 2021, respectively.30GW, which is 132%, 400%, and 241% longer than 2018.The increase of production capacity and the improvement of the production structure will enable the company to continue to consolidate the level of the single crystal integration leader and further enhance the company’s profitability. Investment suggestion: The 苏州夜网论坛 company’s third quarterly performance forecast is in line with our expectations, and the company’s profit forecast is not adjusted for the time being.The company’s net profit for 2019-2021 is expected to be 51.3.3 billion, 65.3.9 billion, 74.73 million, corresponding to 1 for 2019-2021.37, 1.75 and 2.00 yuan, corresponding P / E is 16.88, 13.22 and 11.57 times.In view of the company’s good past fund-raising efficiency, we look forward to the issuance of convertible bonds.The current company’s assessment is reasonable and we maintain the rating of “overweight”. Risk reminders: Uncertainty risks brought by international trade barriers; Uncertainty risks caused by intensified industry competition; Domestic installed demand is less than expected.