freecryptogames2021| Hengdian Dongci's net profit in the first quarter dropped 40% and this year's shipments strive to increase by 50%

Liu Canbang, a reporter from the Securities Times

On April 19, the first quarterly report of the photovoltaic industry was released, becoming the trend of the observation industry.Freecryptogames2021An important weather vane. Hengdian East Magnetic (002056) (002056) achieved operating income of 42% in the first quarter of this year.Freecryptogames2021.33 billion yuan, net profit 3.Freecryptogames2021.53 billion yuan, down 8.6% and 39.4% respectively over the same period last year.

Hengdian East Magnetic first quarter report did not disclose more detailed operating information, however, compared with the fourth quarter of 2023, the first quarter of this year results increased month-on-month. In the fourth quarter of last year, the revenue and net profit of Hengdian East Magnetic Company were 3.96 billion yuan and 166 million yuan respectively.

Hengdian East Magnetic is mainly engaged in the R & D, production and sales of magnetic materials + devices, photovoltaic, lithium and other related products, as well as providing one-stop technical solutions. In 2023, the company achieved revenue of 19.72 billion yuan and net profit of 1.82 billion yuan, an increase of 1.39% and 8.8% respectively over the same period last year.

According to the annual report, in 2023, when the price of the photovoltaic industry chain fluctuated sharply and the industry chain showed increment without increasing income, the company's photovoltaic industry achieved an annual income of 12.777 billion yuan, profits nearly doubled compared with the same period last year, and total shipments were about 10GW, an increase of 24.27% over the same period last year. It is worth noting that Hengdian East Magnetic Co., Ltd. tied for the 10th place in the 2023 component shipping list.

From the revenue dimension, in 2023, the proportion of Hengdian East Magnetic Photovoltaic products, magnetic materials and lithium batteries was 64.79%, 18.97% and 10.40% respectively, of which the proportion of photovoltaic products was basically the same, while the proportion of magnetic materials decreased by 2.64%. Lithium batteries increased by 2.37%. In the same period, the gross profit margins of the above three products were 21.21%, 26.49% and 6.93%, respectively. The gross profit margins of the first two products increased slightly, while the gross profit margin of the lithium battery business declined significantly.

According to the statement made by Hengdian East Magnetic Field when participating in the collective performance presentation with the theme of "forging New quality Productivity" on April 18, the company's photovoltaic product shipments are expected to be about 3.6GW in the first quarter of 2024, achieving rapid growth compared with the same period last year. Shipments of photovoltaic products are expected to grow by more than 20% month-on-month in the second quarter of 2024, and the sales price is expected to be adjusted at the same frequency as the price adjustment of the industry chain. based on the company's differentiated competitive strategy, profitability is expected to remain better than the industry average. In addition, the component profit per watt is about 7 Mel 8 points. Based on the impact of increased competition, the company expects earnings to be under pressure in the first half of the year and repaired in the second half of the year.

Hengdian East Magnetic 2024 business goal is, the company strives to achieve both revenue and profit growth. Shipments of photovoltaic products strive to grow by 50% year-on-year, lithium shipments strive to grow by 50% year-on-year, and the magnetic materials industry actively promotes in-depth internationalization on the basis of steady development.

In terms of business focus, Hengdian East Magnetic said that in 2024, the company will continue to increase advanced production capacity and investment in technological transformation of production lines, and actively promote the landing of Sichuan East Magnetic Phase II 6GW TOPCon high efficiency battery, Lianyungang (601008) East Magnetic Phase II 5GW TOPCon high efficiency module, Southeast Asia 2GW TOPCon high efficiency battery project, Vietnam and Thailand magnetic material project.Freecryptogames2021Actively promote the construction of photovoltaic power station projects, strive for investment in the construction of centralized power stations above GW level and promote 200MW distributed EPC projects. At the same time, the company will also promote a number of production line technical transformation projects, intelligent upgrading, in order to promote the company's high-quality development.

Hengdian East Magnetic also mentioned that it will be customer-centered Rio Tinto market. Among them, the photovoltaic industry should accelerate the global layout, rely on the markets of Europe, China, Japan and South Korea, and enter the markets of North America, Asia-Pacific and South America. Adhere to differential development, consolidate competitive advantages such as "low-carbon market" and "household black components", and radiate to the global market through strategic partners to form two major target markets: large-scale projects and distributed ones.

According to Hengdian Dongji's position at the performance presentation meeting, by region, the domestic market shipments of photovoltaic products this year accounted for about 30%, Europe about 50%, the United States about 10%, the remaining markets in Japan and South Korea, Australia, Latin America and other regions.

Talking about the volume in the industry, Hengdian Dongji said in the institutional research that over the past decade, the photovoltaic industry has been in a cycle of surplus-sharp competition-cost reduction-competitiveness improvement to promote the rapid development of the industry, and the volume belongs to the industry norm. The company has more than 10 years of development history in the photovoltaic industry, as an enterprise focused on manufacturing, will continue to make features in products, and control risks, adhere to long-term doctrine, small steps, through the cycle.

As far as the quarterly report is concerned, as the business of each sector has not been split, it is more difficult to judge the contribution of each sector. As mentioned earlier, lithium battery is also one of the company's fast-growing businesses. In 2023, the revenue of the company's lithium power industry reached 2.051 billion yuan, an increase of 31.38% over the same period last year. 340 million units were shipped, an increase of 75.36% over the same period last year. In the energy production side, the company's new 6GWh project was completed and put into production, and achieved a good capacity to climb the slope.

In the research, Hengdian Dongji said that the first task of the company's lithium power business in 2024 is to strive to achieve full production and sales, and to make product features, and strive to achieve about 50% growth in shipments, with no special requirements for profits, but strive to make significant progress compared with 2023.

Another piece of information revealed in the Hengdian East Magnetic Quarterly report is that Guangfa Fund, Yi Fangda Fund and other products have increased their holdings in Hengdian East Magnetic, and newly entered the top ten shareholders; however, some shareholders have reduced their holdings in Hengdian East Magnetic.