Hesheng Silicon Industry (603260) Interim Report Comments: Volume and Price Decreased, Dredging Results and Gradually Improved Profits

Hesheng Silicon Industry (603260) Interim Report Comments: Volume and Price Decreased, Dredging Results and Gradually Improved Profits

Net profit attributable to mother 6.

54 ppm, a reduction of 54 per year.

76% of companies achieved operating income of 46 in 2019H1.

61 ppm, a decrease of 14 per year.

85%; net profit attributable to mother 6.

5.4 billion, down 54 each year.

76%, earnings per share are 0.

7 yuan.

Single quarter revenue in the second quarter of 1922.

1.9 billion, down 31 every year.

26%; net profit attributable to mother 2.

52 ppm, a reduction of 69 per year.


The company’s reported 北京SPA会所 industrial silicon capacity has not been fully released, and the price of organic silicon products has risen sharply. The company’s performance has fallen short of our expectations.

With the second half of the year, the company Shanshan 10 achieved the expected 19-21 year net profit attributable to the mother.

55, 25.

96, 28.

820,000 yuan, EPS is 2.

19, 2.

77, 3.

07 yuan, maintaining the “overweight” level.

The release of industrial silicon production capacity was less than expected, and the prices of major products fell. According to the 19-year report, domestic industrial silicon demand was weak in 19H1, and the domestic aluminum alloy industry’s lower than expected utilization rate affected industrial silicon demand, while industrial silicon exports significantly decreased.

The company’s industrial silicon 南宁桑拿 capacity was not fully released in the first half of the year.

According to Baichuan, the price of industrial silicon was replaced in the first half of 19 years.

58%, the price of silicone DMC is blended into about 12.


It is said that in the 19th annual report, although the global silicone market demand maintained a steady growth trend in the first half of the year, the price of tandem silicones reported that it still did not run steadily, continuing the changes at the end of 18 years.

The decrease in volume and price of main products caused significant changes in the company’s 19H1 revenue and profits.

10Vertical silicide and deep processing projects are expected to have the scale of the trial production report in the third quarter. The eastern Hesheng has an annual output of 40mm industrial silicon project, Shanshan Electric Industry 2 × 350MW cogeneration and supporting projects, Shanshan Energy Management 6 × 50MW industrial siliconFlue gas waste heat power generation project, Longsheng Carbon has an annual output of 7.

5 The graphitic carbon electrode project that initially used silicon has been completed and put into production one after another. Shanshan Silicon has an annual output of 10 plug-in transformers and downstream deep processing projects that have entered production line equipment debugging. It is expected that it will enter trial production in the third quarter of this year.

It is expected that the company’s performance in the second half of 19 will improve to some extent.

The expense rate level is well controlled, without interfering with the 19-year performance report and the company’s 19-year sales expenses2.

09 billion, down 5 a year.

15%; management costs 0.

900 million, down 11 a year.

05%; financial expenses 1.

19 ppm, an increase of 13 per year.

49%. The increase in financial expenses was due to the increase in interest and the total decrease in other expenses.

It is said to be windy, with an expense ratio of 10 during H1 19 sales.

63%, a decline of 0 every year.

52 points.

In the case of the company’s main products both in volume and price, the cost rate level is better controlled without dragging down performance.

Subsequent supplementary projects are expected to improve performance and maintain the company’s “overweight” grade. In 19H1, the volume and price of the company’s main products have been reduced. We have lowered the company’s production and price expectations. It is expected that the company’s operating income in 19-21 will be 93.

10, 103.

14, 115.

1.9 billion, net profit attributable to parent company 20.

55, 25.

96, 28.

The net profit of 19-21 billion US dollars is lower than the previous forecast, the range is -28%, -23%, -21%, corresponding to PE is 14, 11, 10 times.

With reference to the evaluation level of companies in the same industry (average 17 times PE in 19 years), companies are given 16-17 times PE in 19 years, corresponding to a division interval of 35.


23 yuan (was 59.


16 yuan).

Maintain the “overweight” rating.

Risk warning: Industrial silicon and organic silicon prices are not up to expectations, and increasing production capacity is slow.