Zhonghuan (002129) semi-annual report comment: Interim report results in line with expectations

Zhonghuan (002129) semi-annual report comment: Interim report results in line with expectations

Zhonghuan (002129) semi-annual report comment: Interim report results in line with expectations

Revenue and profit continued to grow steadily. The company realized operating income.

40,000 yuan, 22.

91%; net profit attributable to mother 4.

520,000 yuan, up 50.

69%; net profit after deduction to mother 3.

5.4 billion yuan, 58 year on year.

57% EPS 0.

16 yuan, a year-on-year increase of 43%.

  The operating quality continued to improve the company’s net operating cash flow.

50,000 yuan, 57.

67%; 19 if bill of exchange is included.

800 million, 113.


Selling expenses of 59.5 million yuan, -13.

41%; administrative expenses 1.

70,000 yuan, -9.

69%; financial expenses 3.

690,000 yuan, 27.


The proportion of inventories and accounts receivable decreased slightly at the end of the previous reporting period.

  The company is expanding its semiconductor materials revenue soon.

20,000 yuan, an increase of 21 in ten years.

13%, the newly expanded 8-inch film last year began to contribute revenue.

Gross margin 26.

82%, slightly lower than last year.

34%, mainly due to a slight drop in prices in the first half of the year.

The company currently has a total capacity of 300,000 wafers / month 杭州风月网 for 8-inch silicon wafers. It is expected to put into production an 8-inch production line in the second half of the year and achieve 1.05 million wafers / month in 2022.

The 12-inch test line is already undergoing certification. It is estimated that new production capacity will be launched in 2020 and the total production capacity will be 600,000 pieces / month in 2022.

In the first half of 2019, the company’s products accounted for more than double the sales of first-class customers in the world, and the market reputation and visibility continued to increase.

Relying on the mature power semiconductor product technology experience, the company has realized the production of COP Free products with 8 inches and 65nm and 12 inches with 45nm.

  The photovoltaic large silicon wafer is the future bright spot of the company’s new energy materials revenue.

50,000 yuan, compared with 21.

62%, currently has reached a capacity of 30GW.

Gross profit margin 14.

90%, a decline of 3 per year.


Mainly due to the impact of 531, prices are under pressure, and at the same time, fixed assets have increased significantly by 6 billion compared with last year, resulting in larger depreciation.

The company’s latest M12 large silicon wafer will reduce the cost of electricity by more than 6%, and the corresponding module power can reach 600W.  Profit forecast: We continue to be optimistic about the company’s competition in the field of photovoltaic wafers and semiconductor wafers, and highly recommended!

Net profit is expected to be 13 in 2019-2021.

130,000 yuan, 19.

570,000 yuan, 32.

9.7 billion yuan.

PE 25.

5 times, 17.

1X, 10.

2 times.

  Risk reminder: Semiconductor production expansion progress is less than expected, global photovoltaic installed capacity