通威股份(600438):Industry Leadership Strengthened on Rising Silicon Capacity

Equity Research Report

   Tongwei Co (600438 CH)

   Industry Leadership Strengthened

   on Rising Silicon Capacity

   Huatai Research Quarterly Results Review Rating (Maintain): BUY

   24 November 2023 │ China (Mainland) Power Equipment Target price (RMB): 37.89

   Analyst BIAN Wenjiao

   Leading position strengthened; maintain BUY

   Tongwei Co (Tongwei) registered attributable net profit of RMB3,031mn (-68.11％

   SAC No. S0570518110004

   SFC No. BSJ399

   bianwenjiao@htsc.com

   +(86) 755 8277 6411

   yoy, -35.07％ qoq) for 3Q23. In light of the company’s notable edges in silicon cost,

   we maintain 2023E/2024E/2025E EPS at RMB4.21/3.51/4.06. Given its leading

   position strengthened by edges in industrial chain integration, coupled with the

   sustained ramp-up of advanced production capacity, we are bullish about its

   potential earnings upside, and thus value the stock at a 2023E PE of 9x, a

   premium over the Wind consensus-based average for its peers of 7.23x, for our

   target price of RMB37.89 (previous: RMB4