Financials Tongwei Co.,Ltd

Equities

600438

CNE000001GS3

Renewable Energy Equipment & Services

End-of-day quote Shanghai S.E. Other stock markets 03:30:00 06/05/2024 am IST			5-day change	1st Jan Change
22.02 ^CNY	+1.47%		-2.09%	-12.03%

02/05	Solar Silicon Maker Tongwei's 2023 Profit Drops 47% as Revenue Slips 2%	MT
30/04	Jefferies Adjusts Tongwei’s Price Target to 29.32 Yuan From 33.52 Yuan, Keeps at Buy	MT

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	50,978	1,73,040	2,02,390	1,73,676	1,12,684	99,133	-	-
Enterprise Value (EV) ¹	61,352	1,78,365	2,15,101	1,64,821	1,35,434	1,43,256	1,31,855	1,35,143
P/E ratio	20 x	45.4 x	24.7 x	7.03 x	8.71 x	23.6 x	8.01 x	9.81 x
Yield	1.42%	0.63%	2.03%	7.41%	3.62%	1.03%	3.73%	3.97%
Capitalization / Revenue	1.36 x	3.91 x	3.19 x	1.22 x	0.81 x	0.69 x	0.57 x	0.54 x
EV / Revenue	1.63 x	4.04 x	3.39 x	1.16 x	0.97 x	1 x	0.76 x	0.74 x
EV / EBITDA	12 x	24.8 x	15.8 x	3.68 x	4.72 x	10.9 x	5.38 x	5.4 x
EV / FCF	-34.5 x	-76.6 x	-34.5 x	5.76 x	-23.9 x	-15.2 x	15.9 x	13.4 x
FCF Yield	-2.9%	-1.31%	-2.9%	17.4%	-4.19%	-6.57%	6.3%	7.46%
Price to Book	2.9 x	5.67 x	5.4 x	2.95 x	1.89 x	1.62 x	1.3 x	1.35 x
Nbr of stocks (in thousands)	38,82,585	45,01,548	45,01,548	45,01,713	45,01,970	45,01,974	-	-
Reference price ²	13.13	38.44	44.96	38.58	25.03	22.02	22.02	22.02
Announcement Date	20/04/20	06/04/21	13/02/22	24/04/23	29/04/24	-	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	37,555	44,200	63,491	1,42,423	1,39,104	1,43,556	1,73,997	1,83,776
EBITDA ¹	5,119	7,192	13,650	44,760	28,665	13,158	24,529	25,047
EBIT ¹	3,123	4,713	10,834	39,574	22,291	6,078	16,669	14,269
Operating Margin	8.32%	10.66%	17.06%	27.79%	16.02%	4.23%	9.58%	7.76%
Earnings before Tax (EBT) ¹	3,152	4,274	10,390	38,339	22,052	5,476	18,650	15,439
Net income ¹	2,635	3,608	8,208	25,726	13,574	4,061	12,031	10,298
Net margin	7.02%	8.16%	12.93%	18.06%	9.76%	2.83%	6.91%	5.6%
EPS ²	0.6558	0.8466	1.823	5.489	2.874	0.9336	2.750	2.245
Free Cash Flow ¹	-1,779	-2,329	-6,233	28,633	-5,676	-9,418	8,312	10,077
FCF margin	-4.74%	-5.27%	-9.82%	20.1%	-4.08%	-6.56%	4.78%	5.48%
FCF Conversion (EBITDA)	-	-	-	63.97%	-	-	33.89%	40.23%
FCF Conversion (Net income)	-	-	-	111.3%	-	-	69.09%	97.85%
Dividend per Share ²	0.1860	0.2410	0.9120	2.858	0.9050	0.2277	0.8220	0.8744
Announcement Date	20/04/20	06/04/21	13/02/22	24/04/23	29/04/24	-	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2020 S1	2020 S2	2021 Q4	2022 Q1	2022 Q2	2022 S1	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1	2025 Q2
Net sales ¹	-	-	16,791	24,685	35,654	-	41,745	40,338	33,245	40,824	37,352	27,684	19,570	27,175	36,020	45,419	-	-
EBITDA ¹	-	-	3,457	-	11,947	-	15,272	-	-	-	-	-	-	3,522	4,503	4,492	-	-
EBIT ¹	-	-	3,321	6,879	10,381	-	14,127	8,187	12,671	7,719	4,384	-2,483	-	1,340	2,321	2,310	-	-
Operating Margin	-	-	19.78%	27.87%	29.12%	-	33.84%	20.3%	38.11%	18.91%	11.74%	-8.97%	-	4.93%	6.44%	5.09%	-	-
Earnings before Tax (EBT) ¹	-	-	-	-	-	-	-	-	-	-	4,357	-2,680	-	1,001	1,868	1,566	-	-
Net income ¹	1,010	2,597	-	5,194	-	12,224	9,507	3,996	8,601	4,669	3,031	-2,728	-	689.4	1,453	1,018	-	-
Net margin	-	-	-	21.04%	-	-	22.77%	9.91%	25.87%	11.44%	8.12%	-9.85%	-	2.54%	4.03%	2.24%	-	-
EPS ²	-	-	0.5000	1.154	1.470	-	2.021	0.8700	1.787	0.9500	0.6300	-0.5000	-0.1748	0.1531	0.3228	0.2261	-	-
Dividend per Share ²	-	-	0.9120	-	-	-	-	2.858	-	-	-	-	-	-	-	0.1583	-	-
Announcement Date	07/08/20	06/04/21	13/02/22	25/04/22	17/08/22	17/08/22	25/10/22	24/04/23	24/04/23	21/08/23	25/10/23	29/04/24	29/04/24	-	-	-	-	-

¹CNY in Million²CNY

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	10,374	5,325	12,712	-	22,750	44,123	32,721	36,010
Net Cash position ¹	-	-	-	8,855	-	-	-	-
Leverage (Debt/EBITDA)	2.027 x	0.7404 x	0.9313 x	-	0.7937 x	3.353 x	1.334 x	1.438 x
Free Cash Flow ¹	-1,779	-2,329	-6,233	28,633	-5,676	-9,418	8,312	10,077
ROE (net income / shareholders' equity)	16.1%	16.1%	24.2%	52.4%	22.6%	6.3%	15.1%	12.5%
ROA (Net income/ Total Assets)	6.18%	6.5%	10.8%	-	-	2.03%	6.09%	6.83%
Assets ¹	42,651	55,541	76,322	-	-	1,99,726	1,97,557	1,50,889
Book Value Per Share ²	4.530	6.780	8.330	13.10	13.20	13.60	16.90	16.40
Cash Flow per Share ²	0.6100	0.6700	1.690	9.730	6.810	3.230	4.830	5.660
Capex ¹	4,137	5,354	13,851	15,185	36,355	24,648	17,937	15,056
Capex / Sales	11.01%	12.11%	21.82%	10.66%	26.14%	17.17%	10.31%	8.19%
Announcement Date	20/04/20	06/04/21	13/02/22	24/04/23	29/04/24	-	-	-

¹CNY in Million²CNY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Tongwei Co.,Ltd

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

22.02 CNY

Average target price

29.06 CNY

Spread / Average Target

+31.95%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Photovoltaic Solar Systems & Equipment

	1st Jan change	Capi.
TONGWEI CO.,LTD	-12.03%	13.5B
FIRST SOLAR, INC.	+12.50%	20.5B
LONGI GREEN ENERGY TECHNOLOGY CO., LTD.	-19.17%	19.06B
JINKO SOLAR CO., LTD.	-12.30%	10.47B
FLAT GLASS GROUP CO., LTD.	+40.52%	8.03B
XINJIANG DAQO NEW ENERGY CO.,LTD.	-16.33%	7.22B
XINYI SOLAR HOLDINGS LIMITED	+26.32%	6.47B
JA SOLAR TECHNOLOGY CO., LTD.	-30.74%	6.46B
NEXTRACKER INC.	+0.09%	6.29B
TCL ZHONGHUAN RENEWABLE ENERGY TECHNOLOGY CO.,LTD.	-32.23%	5.82B

Photovoltaic Solar Systems & Equipment