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More than 70% of enterprises will return to profitability. The ...

More than 70% of enterprises will return to profitability. The ...

DATE:2018-07-10 VIEWS:97


After experiencing the trough in 2012, the domestic PV market is continuously climbing due to multiple factors such as supply and demand restoration, policy-intensive support and technological progress. According to the data, as of April 28, 32 of the 33 A-share listed PV companies have published annual reports, of which 75% (24) have achieved profitability, and 8 companies have doubled their net profit. However, judging from the annual report and the quarterly report data, there are still many companies in the industrial chain struggling in the quagmire of losses, and the manufacturing sector is still relatively sluggish. The Shanghai Securities Journal reporter obtained news from the industry that after the outbreak of the distributed market, enterprises entered a new position, and the photovoltaic industry may usher in a new round of mergers and acquisitions.

The whole industry chain is warming up

According to data from NPD Solarbuzz, a global PV market research organization, the domestic market installed capacity in China reached 11.5 GW in 2013, an increase of 140% over the previous year, compared with 6 GW for the previous years.

The huge increase in installed capacity of power stations has brought about a rapid recovery in the performance of A-share PV power plants. In the middle of last year, China's photovoltaic power station leader Aerospace Electromechanical (600151) took the lead in profitability with the business model of “investment-construction-transfer-operation”; Zhongli Technology (002309) also achieved profit in the fourth quarter of last year; Ikang Technology’s first quarter net profit The first growth is now. In 2014, these companies will continue to acquire and build ground power stations, and plan to reach 500MW, 600MW and 1GW respectively this year.

Solarbuzz senior analyst Han Qiming told the Shanghai Securities Journal that in the second half of 2013, the global PV market demand began to grow substantially, bringing two results: First, the price of PV modules has rebounded; second, many companies in the industry chain have turned losses into profits. Especially in the two parts of the component and power station development.

In the manufacturing sector, Yingli, the world's largest PV module manufacturer and US-listed company, announced last week that it expects to achieve profit for the first time in the second quarter of this year after three consecutive losses. In fact, most of the A-share component companies have turned losses in 2013. Sunflower (300111), Dongfang Risheng (300118) and Yijing Optoelectronics (600537) achieved net profit of 40.61 million, 75.565 million and 68.878 million yuan respectively in 2013, and the gross profit margin was also From about 5% in the same period last year, it rose to about 15%. In the first quarter, the performance of related companies recovered, and the first-quarter pre-earnings of monocrystalline silicon leader Longji (601012) reached 73.8% of the previous year's performance. The inverter faucet Sunshine Power (300274) turned profit in January-March. 6.9 times.

Moreover, this warming is continuously conducted upstream from the downstream. For example, Jinggong Technology, which is mainly engaged in ingot furnaces and photovoltaic equipment, is still losing money in 2013, and it is welcoming in the first quarter of this year. Another furnace company, Jingsheng Electromechanical (300316), saw a year-on-year decline in its performance in the first quarter and the first quarter, but it is expected this year. It will increase by 20% to 40% in the first half of the year.

For the reasons for turning losses, many companies have indicated that the elimination of excess capacity in the photovoltaic industry in 2013 has achieved initial results. The industry's recovery has driven up demand for manufacturing, the efficiency of polysilicon conversion has led to lower costs, and the scale of domestic PV power generation is driven by favorable policies. Significant expansion, domestic market orders rose sharply. It is worth noting that the above-mentioned manufacturing industries, especially component manufacturers such as Sunflower and Dongfang Risheng, are all extending to downstream power stations. Last year's performance in power station revenue contributed a considerable amount.

Industry adjustment is not completed

Looking forward to 2014, the industry's recovery will accelerate into a foregone conclusion. Most people in the industry believe that the national energy installation target set by the National Energy Administration at the beginning of this year is 14GW, an increase of nearly 50% year-on-year, which has formed strong support for the development of the industry. Han Qiming is optimistic. “According to our estimation, the gross profit margin of component manufacturing enterprises is expected to reach 20% to 30% in 2014, and the gross profit margin of enterprises involved in downstream power station development is expected to reach 50% to 60%.”

Although the photovoltaic industry is hard-working and ready to go, there are still many companies that continue to lose money. For example, Hairun Photovoltaic (600401) originally lost 131 million yuan in 2013, but on April 25 this year, it further lowered the net profit attributable to shareholders of listed companies to a pre-loss of 203 million yuan; Litigation and other issues, a huge loss of 5.2 billion yuan last year, is currently divesting new energy assets.

Dongfang Risheng Dongshen Xueshanxing said in an interview with the Shanghai Stock Exchange reporter that “the industry is brighter and the future is bright, and the road is tortuous. For several reasons, the market competition is relatively disordered, and the possibility of completing industry integration is relatively large, eventually forming More powerful leading enterprises do not disperse sand like the original ones.” Insiders of a domestic power station enterprise with component production capacity told reporters that it is a good time to acquire and merge, and some polysilicon enterprises cannot keep up because of the capital chain. Following, and its equipment is advanced, many companies, including companies, are competing for bottom-ups, which has become an open secret in the industry.

In terms of policy, the industry expects the National Energy Administration to issue a fine-tuning policy for distributed PV this year, which is currently in the running-in period. Many PV companies told reporters that if the policy introduction can lock in the benefits of distributed power plants and have a better business model, distributed photovoltaic power plants will usher in explosive growth, and its market space is infinite, including Aikang Technology (002610). Many listed companies including Lin Yang Electronics (601222) and Dongfang Risheng have already begun to deploy, and it remains to be seen who will die.