Financials Tongwei Co.,Ltd

Equities

600438

CNE000001GS3

Renewable Energy Equipment & Services

End-of-day quote Shanghai S.E. Other stock markets 06:00:00 2024-05-07 pm EDT			5-day change	1st Jan Change
22.3 ^CNY	-0.36%		+2.76%	-10.91%

May. 02	Solar Silicon Maker Tongwei's 2023 Profit Drops 47% as Revenue Slips 2%	MT
Apr. 30	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	173,040	202,390	173,676	112,684	100,394	-	-
Enterprise Value (EV) ¹	61,352	178,365	215,101	164,821	135,434	142,716	136,982	144,699
P/E ratio	20 x	45.4 x	24.7 x	7.03 x	8.71 x	26.1 x	10.1 x	11.3 x
Yield	1.42%	0.63%	2.03%	7.41%	3.62%	1.02%	3.07%	2.84%
Capitalization / Revenue	1.36 x	3.91 x	3.19 x	1.22 x	0.81 x	0.72 x	0.59 x	0.57 x
EV / Revenue	1.63 x	4.04 x	3.39 x	1.16 x	0.97 x	1.02 x	0.81 x	0.82 x
EV / EBITDA	12 x	24.8 x	15.8 x	3.68 x	4.72 x	10.7 x	5.97 x	6.02 x
EV / FCF	-34.5 x	-76.6 x	-34.5 x	5.76 x	-23.9 x	-15.2 x	16.5 x	14.4 x
FCF Yield	-2.9%	-1.31%	-2.9%	17.4%	-4.19%	-6.6%	6.07%	6.96%
Price to Book	2.9 x	5.67 x	5.4 x	2.95 x	1.89 x	1.64 x	1.33 x	1.37 x
Nbr of stocks (in thousands)	3,882,585	4,501,548	4,501,548	4,501,713	4,501,970	4,501,974	-	-
Reference price ²	13.13	38.44	44.96	38.58	25.03	22.30	22.30	22.30
Announcement Date	4/20/20	4/6/21	2/13/22	4/24/23	4/29/24	-	-	-

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	142,423	139,104	139,750	169,041	176,241
EBITDA ¹	5,119	7,192	13,650	44,760	28,665	13,308	22,928	24,044
EBIT ¹	3,123	4,713	10,834	39,574	22,291	5,797	14,688	12,612
Operating Margin	8.32%	10.66%	17.06%	27.79%	16.02%	4.15%	8.69%	7.16%
Earnings before Tax (EBT) ¹	3,152	4,274	10,390	38,339	22,052	5,278	17,967	13,541
Net income ¹	2,635	3,608	8,208	25,726	13,574	3,694	10,047	9,010
Net margin	7.02%	8.16%	12.93%	18.06%	9.76%	2.64%	5.94%	5.11%
EPS ²	0.6558	0.8466	1.823	5.489	2.874	0.8529	2.214	1.968
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%	-6.74%	4.92%	5.72%
FCF Conversion (EBITDA)	-	-	-	63.97%	-	-	36.25%	41.91%
FCF Conversion (Net income)	-	-	-	111.3%	-	-	82.73%	111.84%
Dividend per Share ²	0.1860	0.2410	0.9120	2.858	0.9050	0.2277	0.6849	0.6327
Announcement Date	4/20/20	4/6/21	2/13/22	4/24/23	4/29/24	-	-	-

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	0.2864	0.2281	-	-
Dividend per Share ²	-	-	0.9120	-	-	-	-	2.858	-	-	-	-	-	-	-	0.1583	-	-
Announcement Date	8/7/20	4/6/21	2/13/22	4/25/22	8/17/22	8/17/22	10/25/22	4/24/23	4/24/23	8/21/23	10/25/23	4/29/24	4/29/24	-	-	-	-	-

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	42,322	36,588	44,305
Net Cash position ¹	-	-	-	8,855	-	-	-	-
Leverage (Debt/EBITDA)	2.027 x	0.7404 x	0.9313 x	-	0.7937 x	3.18 x	1.596 x	1.843 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%	6.58%	13.8%	11.6%
ROA (Net income/ Total Assets)	6.18%	6.5%	10.8%	-	-	1.88%	5.19%	5.45%
Assets ¹	42,651	55,541	76,322	-	-	196,987	193,626	165,318
Book Value Per Share ²	4.530	6.780	8.330	13.10	13.20	13.60	16.70	16.30
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	25,498	17,263	14,604
Capex / Sales	11.01%	12.11%	21.82%	10.66%	26.14%	18.25%	10.21%	8.29%
Announcement Date	4/20/20	4/6/21	2/13/22	4/24/23	4/29/24	-	-	-

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

22.3 CNY

Average target price

27.8 CNY

Spread / Average Target

+24.68%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Photovoltaic Solar Systems & Equipment

	1st Jan change	Capi.
TONGWEI CO.,LTD	-10.91%	13.96B
FIRST SOLAR, INC.	+10.70%	20.84B
LONGI GREEN ENERGY TECHNOLOGY CO., LTD.	-19.17%	19.71B
ENPHASE ENERGY, INC.	-14.97%	15.64B
JINKO SOLAR CO., LTD.	-14.00%	10.88B
FLAT GLASS GROUP CO., LTD.	+36.42%	8.2B
XINJIANG DAQO NEW ENERGY CO.,LTD.	-16.17%	7.48B
JA SOLAR TECHNOLOGY CO., LTD.	-31.27%	6.66B
XINYI SOLAR HOLDINGS LIMITED	+21.49%	6.65B
NEXTRACKER INC.	-6.66%	6.28B

Photovoltaic Solar Systems & Equipment