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隆基股份(601012)1H19 earnings to surge by 50-60% YoY

1H19 earnings to surge by 50-60% YoY

SUMMARY. LONGi released positive profit alert, stating 1H19 earnings would surge by 50-60% YoY on the back of 1) rapid wafer and module sales growth and 2) improving product costs. We believe 1H19 earnings beat consensus estimates, and 2H19 module sales will likely accelerate with PV demand release in China.Raise FY19E earnings up by 5.9%.Based on revised GPM outlook for LONGi's better-than-expected wafer and module production costs control, weraise FY19-21E EPS outlook by 5.9%/7.3%/11.8% toRMB1.30/1.53/1.99respectively. We believe LONGi's 1H19 performance will enhance its leadingposition in PV product supply chain. Reiterate BUY with TP unchanged atRMB28.00 per share.

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