Longji shares (601012): the first half performance increased by 50% -60% than expected

Longji shares (601012): the first half performance increased by 50% -60% than expected
Summary and recommendations: The company announced the 2019 semi-annual results increase, and the net profit attributable to shareholders of the listed company is 19.61-20.91 ppm, an annual increase of 50% -60%. Net profit attributable to listed companies after deduction is 19.41-20.USD 7.1 billion, an annual increase of 55% -65%, exceeding market expectations. Increase the profit forecast, the company is expected to have a net profit of 46 in 2019/2020.69/57.30 billion, an annual increase of 82.53% / 22.72%, EPS is 1.288/1.581 yuan, corresponding to the current expected PE is 17 and 14 times, give a “buy” recommendation. Performance increased by 50% -60%: net profit attributable to mothers was achieved in the first half of 2019.61-20.USD 9.1 billion, an increase of 50% -60% per year, of which net profit attributable to the mother in the second quarter13.5-14.8 ppm, an increase of 77% -94% per year, with 6 in the first quarter.Compared with 1.1 billion, the chain increased by 120% -142%.Mainly due to the rapid growth of overseas demand in the first half of the year, the company’s overseas sales share increased rapidly, and overseas revenue increased significantly. At the same time, monocrystalline silicon wafers and module sales increased, and gross profit margins increased significantly. Overseas revenue has increased rapidly, and gross profit margin has increased significantly. Since 19 years, China’s exports of overseas components have continued to increase rapidly, gradually exporting from January to June33.22GW, an annual increase of 86%, it is expected that China’s overall module export volume will exceed 60GW, a year will exceed 53%.The company actively adapts to market changes and adjusts marketing strategies. The proportion of overseas sales of components has increased rapidly, and overseas revenue has grown significantly.At the same time, single crystal silicon wafers are experiencing tight transitional supply, lowering prices of silicon materials and the continuous decline in non-silicon costs. The gross profit margin has increased significantly, and it is expected to maintain high 武汉夜生活网 profitability. The bidding landed, and the installed capacity doubled in the second half of the year: On July 11, the National Energy Administration announced a 19-year bidding project with a total size of 22.79GW, with an annual subsidy of 17 ppm. There are also projects for household use, poverty alleviation, parity demonstration, and front runner base.Domestic photovoltaic demand will increase rapidly in the first half compared to the first half. Earnings forecast and investment recommendations: Increase the earnings forecast and expect the company’s net profit in 2019/2020 to be 46.69/57.30 billion, an annual increase of 82.53/22.72%, EPS is 1.288/1.581 yuan, corresponding to the current expected PE is 17 and 14 times, give a “buy” recommendation. Risk warning: Overseas installations are less than expected, and domestic policies 杭州桑拿网 fluctuate.