Longji (601012): High-efficiency single crystal integration leader

Longji (601012): High-efficiency single crystal integration leader
Main points: The development prospects of the photovoltaic industry are good.It is estimated that in 2019, the global supplementary installed capacity of photovoltaics will reach 120GW, and in 2025, the optimistic installed capacity is expected to reach 200GW, and in 2018-2025, it is expected that the combined 南宁桑拿 capacity will be 8.92%.It is expected that by 2050, the global photovoltaic installed capacity will reach 8,500GW.Driven by overseas markets, the photovoltaic industry is experiencing a boom in production and sales.The steady growth of global demand for photovoltaics will effectively improve the fluctuation of domestic installed capacity.The domestic bidding Internet access mechanism will promote the steady growth of installed capacity.It is estimated that the domestic installed photovoltaic capacity in 2019 will be 45GW, which is basically the same as in 2018.  Longji has leading R & D advantages in certain industries to upgrade its products.The company has been deeply plowing the photovoltaic industry for a long time. Through its expanded scientific research capabilities, it can effectively introduce the expected patented technological achievements, continuously improve the efficiency of single crystal products, and its large-scale applications have also formed significant cost advantages for its products.In May 2019, Longji launched the high-efficiency single-crystal module Hi-MO 4 and large-size M6 single-crystal silicon wafers at the same time, leading the industry to upgrade to high-efficiency products.  The steady expansion of production capacity has further consolidated the company’s industry leadership.In the process of continuous and rapid growth of the company’s operating scale, the company has always insisted on expanding its production capacity under the leading technology and stable financial reorganization, has strong debt repayment ability, high level of anti-risk, and stable operating style.As of August 1, 2019, the company has released nine capacity investment plans in 2019, with a total investment scale of approximately 177.6.9 billion, in line with the company’s strategic needs for future capacity planning.Steady capacity expansion will help the company seize the development trend of the single crystal market, further consolidate the single crystal leading region, and further increase the single crystal market share.  Investment suggestion: In light of the domestic photovoltaic development policy, the company’s monocrystalline integration leader has gradually stabilized, and its production capacity will also expand steadily. We expect the company to return to the growth path from 2019, and the EPS for 2019-2021 will be 1.36, 1.86 and 2.20 yuan, corresponding P / E is 18 respectively.12, 13.23 and 11.23 times.The current company estimates are reasonable, covering for the first time, and giving an “overweight” rating risk reminder: the risk of uncertainty caused by international trade barriers; the risk of uncertainty caused by intensified industry competition;