CNC on Machine (603185): Second-quarter results improved month-on-month; second-half results greeted performance inflection points

CNC on Machine (603185): Second-quarter results improved month-on-month; 西安耍耍网 second-half results greeted performance inflection points

Event company released semi-annual report: in the first half of 2019, the company’s main business income2.

USD 9.3 billion, exceeding the minimum 25%; net profit attributable to mothers was RMB 95.57 million, an increase of 21% per inch.

The second quarter’s single quarter performance improved month-on-month, at least the increase rate improved, and the second half of the year is expected to usher in an inflection point: the company’s revenue in the first quarter was 1.

21 ‰, an average of 39% over ten years; net profit is 0.

42 trillion, an average of 30% in ten years.

Single-quarter net profit in the second quarter was zero.

US $ 5.3 billion, an increase of 26% from the previous month; an increase of 11% per year can further increase the improvement.

We judge that the decline in the company’s performance in the first half of the year is mainly due to the “531” photovoltaic new policy in 2018 that led to additional price reductions in the entire photovoltaic industry chain. The investment enthusiasm of downstream photovoltaic manufacturers has plummeted, and the supply chain equipment manufacturers have the most supplementary orders.

In the first half of 2019, the photovoltaic industry gradually picked up. Some monocrystalline wafer manufacturers started a new round of expansion. The company’s photovoltaic diamond wire slicer orders gradually landed. New orders were gradually confirmed after the installation, commissioning and acceptance of equipment. We judge the company.Results are expected to usher in an inflection point in the second half of the year.

The company announced the specific implementation arrangement of the “5GW monocrystalline silicon pulling crystal production project”: The Baotou monocrystalline silicon project is scheduled to be put into production in batches from December 2019. It is divided into three phases for implementation, which are the first phase of the project (1.

5GW), the second phase of the project (2GW), the third phase of the project (1.


The expected production time is December 2019, July 2020 and May 2021.

From May to August 2019, the company purchased single crystal furnace equipment5 from Jingsheng Electromechanical and Jingyuntong.

500 million, 4.


Our analysis: According to the company’s Baotou project feasibility report, the total investment of the project is 30.

200 million yuan, of which equipment investment is about 14.


If the single crystal furnace is accounted for about 70% of the equipment investment, the company’s two recent purchases of single crystal furnace contracts have basically met the needs of the Baotou project (5GW single crystal). From the point of equipment purchase, the progress of the Baotou project is expectedBeyond expectations.

Strategic Cooperative with GCL-Poly: More than 40% of the company’s monocrystalline silicon rods will be sold to GCL-Poly: (1) Annual purchase of supplementary materials from GCL over 40%; (2) Annual sales of monocrystalline silicon rods to GCLOver 40%; (3) GCL preferentially purchases the 南京桑拿论坛 company’s slicer and other equipment.

We believe that the strategic agreement shows that the company’s monocrystalline silicon project is recognized by downstream customers in the industry chain.

Investment proposal If the monocrystalline silicon project goes well, the net profit is expected to be 2 in 2019-2021.



0 million yuan, an increase of 17 in ten years.

4% / 70.

5% / 25.

6%, corresponding to 21/12/10 times the PE.

Based on segment evaluation, the company is given a target price of 40 from June to December.

71 yuan, maintain “Buy” rating.

Risks prompt policy risks in the photovoltaic industry; the progress of Baotou’s monocrystalline silicon project is gradually expected; the risk of wafer price fluctuations