Revenue increased significantly. First half of 2013, the company achieved operating income of 723 million yuan, an increase of 99.59%; net profit of 53.913 million yuan, an increase of 19.53%; net operating cash flow to achieve 144 million yuan, an increase of 190%.
EPC business begin to exert. In the first half, the company 361 million yuan revenue growth, mainly due to the new year to develop photovoltaic power plant systems integration business, which contributed 266 million yuan. According to the company has signed a contract project situation, the expected EPC business year will achieve 5.5-6 billion in revenue, will become the company this year and the coming years the major growth point.
Inverter to maintain high growth, prices gradually stabilized. Benefit from the domestic PV market launch, the company dc ac inverter business income of 430 million yuan in the first half, an increase of 33.58%, continue to maintain a higher shipments; achieve gross margin 30.10%, although down by 10.32 points, but the chain basically the same as last year.
Fully benefit from the outbreak of the domestic PV market. Along with the "Twelve Five" plan by the PV installed 20GW target upwards to 35GW, the explosive growth of the domestic PV market is already open, the domestic photovoltaic installed capacity is expected to 2013-2015 will reach 8GW, 10GW, 12GW. Company as the leading enterprises in domestic inverter, on the one hand will fully benefit from the rapid growth of the inverter business (companies occupy the domestic inverter market share of approximately 30%), on the other hand will benefit from the downstream PV power plant system integration business rapid growth (EPC, the company in the capital, experience, government relations and have an advantage).
Earnings forecasts and investment rating: adjust the company's earnings forecast the next three years, after adjustment, the company expects EPS for 2013-2015: 0.39 yuan, 0.58 yuan, 0.81 yuan, corresponding to the July 26 closing price, PE, respectively: 43 times, 29 times, 21 times. Taking into account the outbreak of the domestic PV market will guarantee the performance of the next three years, the current valuation basically reflects the growth of the next three years, it is to maintain "overweight" rating.
Risk Warning: The solar power inverter prices continue to fall sharply risks; domestic PV installed capacity lower than expected risk; EPC project default risk; GEM systemic risk.