Longji (601012): Profitability continues to improve and cash flow improves
The company released the third quarter report for 2019, and the first three quarters achieved revenue of 226.930,000 yuan, an increase of 54 in ten years.68%, net profit attributable to mother 34.840,000 yuan, an increase of 106 in ten years.03%.The third quarter achieved revenue of 85.820,000 yuan, 南京夜网论坛 an increase of 83 in ten years.80%, an increase of 2 from the previous month.15%, net profit attributable to mother 14.750,000 yuan, an increase of 283 in ten years.85%, an increase of 5 from the previous month.46%. Weak demand affects the increase, and costs and expenses continue to decline: affected by the late release of domestic bidding indicators, domestic photovoltaic installations in the third quarter.4GW, affecting the company’s domestic sales of modules, module sales fell sequentially.The company’s comprehensive gross profit margin in the third quarter was 29.93%, an increase of 8.61 units, an increase of 1 from the previous quarter.89 average values, which have continued to increase since the fourth quarter of 2018. The price of wafers and component execution prices have stabilized in the third quarter. The increase in gross profit margin indicates that costs have continued to decline.The company’s expense ratio in the first three quarters was 8.21%, down by 1 every year.18 units, expense ratio 7 in the third quarter.48%, a decline of 2 per year.88 units. High overseas sales growth and continuous improvement in cash flow: The company’s overseas market business layout and channel construction have significantly improved. In the first half of the year, the sales volume of overseas monocrystalline modules reached 2423MW, an increase of 252%. The overseas sales of modules accounted for 76%. Overseas sales in the third quarterThe high proportion continued.The company strengthened production and operation management and cash control, and cash flow continued to improve, achieving 40 in the first three quarters.Net operating cash inflow of US $ 1.4 billion, 15 in the third quarter.8.7 billion net inflows.Accounts receivable at the end of the third quarter38.500,000 yuan, a decrease of 9 from the previous month.3.9 billion. Rapid expansion of production capacity, demand is expected to rise: given the full advantages of cost and technology, the company’s production capacity accelerated.Wafer production capacity is expected to reach 65GW in 2020, one year earlier than originally planned.The cell capacity in 2019-2021 is expected to reach 10GW, 15GW and 20GW; the module capacity is expected to reach 16GW, 25GW and 30GW in 2019-2021.Yunnan Phase II silicon rod wafer project has been put into production and climbing.With the gradual opening of domestic bidding projects and the expectation of stable growth in overseas demand next year, it is expected that global installed demand will gradually rise. Profit forecast: The company’s EPS for 2019-2021 is expected to be 1.30, 1.67 and 2.10 yuan, maintain BUY rating. Risk reminder: Product prices fall more than expected; overseas market development is less than expected