Stock speculation to see Jin Kirin analyst research report, authoritative, professional, timely, comprehensive, to help you tap the potential of the theme opportunity!

Source: financial Investment News

Reporter Liu Min

Recently, the China Photovoltaic Industry Association organized a forum on the high-quality development of the photovoltaic industry in Beijing. The meeting pointed out that it is necessary to strengthen the crackdown on vicious competition in sales below cost prices, encourage mergers and restructuring in the industry, and smooth the market exit mechanism.

A reporter from the Financial Investment News noted that since the beginning of this year, product prices on the photovoltaic industry chain have continued to decline, while the performance of photovoltaic listed companies in the first quarter is also obviously under pressure. Industry insiders pointed out that the imbalance between supply and demand makes the price of photovoltaic products continue to decline, and some products have even fallen below the cost line, or it is expected to accelerate the clearing of the supply side.

Promote the construction of price index model

Recently, the price of photovoltaic industry chain in China has been declining all the way, and enterprises are under pressure. Under the guidance of the Electronic Information Department of the Ministry of Industry and Information Technology, the China Photovoltaic Industry Association organized a forum on the high-quality development of the photovoltaic industry in Beijing.

The meeting pointed out that the photovoltaic industry is an industry with a very high degree of marketization, and it is more appropriate to solve the current difficulties of the industry through market-oriented means, but it should also give full play to the role of the visible hand of the government. including optimizing the guiding role of photovoltaic manufacturing industry management policies on industry capacity construction, standardizing the management of local government investment policies, and establishing a national unified market. Adapt to the characteristics of fast iteration of photovoltaic technology, establish effective intellectual property protection measures, encourage industry merger and reorganization, smooth the market exit mechanism, and intensify the crackdown on vicious competition in sales below cost; ensure the stable growth of the domestic photovoltaic market, explore to support the application of advanced technology through demonstration projects, and change the situation of winning bids at low prices.

It is reported that representatives from Trina Solar Energy, Xiexin Technology, Jingke Energy, Ates, Longji Green Energy, Tongwei shares, Daquan Energy, Development Research Center of the State Council, Energy Research Institute of National Development and Reform Commission, National Engineering Research Center for Silicon-based material preparation Technology, National Development Bank, Industrial Bank and other photovoltaic enterprises, research units, local governments and financial institutions attended the meeting.CryptoquestnftgameFor this meeting.

Next, the China Photovoltaic Industry Association will focus on the following work: first, give full play to the role of "normative conditions of the photovoltaic manufacturing industry" to guide and standardize the development of the industry. The second is to continue to promote the construction of price index model and explore a more reasonable price formation mechanism at home and abroad by means of photovoltaic module futures. Third, it is planned to hold a forum on the calibration and downgrading of TOPCon battery efficiency to discuss the causes and solutions. Fourth, continue to strengthen industry monitoring, and relevant industry information will be released to the public in a timely manner.

The first quarter performance of photovoltaic enterprises is under pressure.

In 2023, the prices of products in all aspects of the photovoltaic industry chain fell, the prices of silicon materials decreased by about 70%, the prices of silicon wafers and batteries decreased by about 60%, and the prices of components decreased by about 50%. In the fourth quarter of 2023, the bidding price of components fell to less than 1 yuan per watt, disorderly low-price competition greatly reduced the profitability of enterprises, and the performance of listed companies in the photovoltaic industry chain declined.

In the first quarter of 2024, the newly installed scale of photovoltaic increased by 35% compared with the same period last year.Cryptoquestnftgame.89%, but it did not reverse the fundamentals of the poor market climate. Take the price of N-type TOPCon components as an example, from 0.98 yuan / W in mid-early January to 0.86 yuan / W now, a drop of more than 10%. At the same time, the performance of a number of listed companies in the photovoltaic industry is lower than expected. Of the 86 listed companies in the photovoltaic sector, 53 reported a decline in homing net profit in the first quarter of this year, according to Wind.

Specifically, Jingke Energy achieved operating income of 23.084 billion yuan in the first quarter of 2024, down 0.3% from the same period last year, while its net profit was 1.176 billion yuan, down 29.09% from the same period last year. For the decline in performance, Jingke Energy said that it is mainly due to the decline in the price of photovoltaic modules.

Trina Solar said that affected by the supply and demand of the photovoltaic industry chain, the price of the company's components declined compared with the same period last year, and the profitability of photovoltaic modules declined. In the first quarter of this year, Trina Solar achieved operating income of 18.26 billion yuan and net profit of 516 million yuan, down 14.37% and 70.83% respectively from the same period last year. The net cash flow generated by operating activities was-4.39 billion yuan, a sharp decrease of 391.51% compared with the same period last year.

Longji Green Energy achieved operating income of 17.674 billion yuan in the first quarter of this year, down 37.59% from the same period last year, while net profit was-2.35 billion yuan, down 164.61% from the same period last year. The company said that during the reporting period, product prices in all aspects of the photovoltaic industry chain continued to decline, and the company's overall gross profit margin declined significantly. In the current period, the provision for impairment of inventory assets was 2.649 billion yuan, and that for impairment of fixed assets was 152 million yuan.

Photovoltaic industry is expected to accelerate clearance

It is worth noting that in the case of a general decline in the price of photovoltaic products in the industry chain, some enterprises have terminated project investment or postponed project construction.

In February this year, Enengju temporarily suspended production of the polysilicon battery production line, originally planned to stop production until March 31, 2024, but due to the lack of satisfactory results in obtaining orders, the company decided to continue to suspend production of the polysilicon battery production line.

In March this year, Haiyuan compound material announced that it would terminate the Chuzhou 15GW N-type high-efficiency photovoltaic cell and 3GW high-efficiency photovoltaic module project and transfer it to Aixu Technology at a price of 38 million yuan.

Industry insiders believe that component prices are expected to continue to decline in the future, while low-price competition to a certain extent affects the healthy development of the industry, but also makes enterprises' investment in R & D and innovation limited.

The symposium on the high-quality development of the photovoltaic industry encouraged mergers and restructuring of the industry, unblocked the market exit mechanism, and released a positive signal of the supply-side structural reform of the industry. On the secondary market, on May 22, the photovoltaic plate rose in the afternoon, and more than 10 shares such as King Kong Photovoltaic, Oriental Sunrise, Jinchen shares and Qingyuan shares rose by the daily limit.

Pacific Securities latest research report analysis, the photovoltaic industry chain upstream extremely low prices continue, is expected to accelerate the supply end of the clear, the medium-term bottom of the industry will come soon. At present, the mainstream transaction price of single crystal densifier is 36 yuan / kg, and the mainstream transaction price of N-type M10 silicon wafer is 1.25 yuan / chip. This irrational price will accelerate the drying up of cash flow of second-and third-tier companies.

Hua 'an Securities believes that the industrial chain continues to cut prices, leading companies in all links or entering the stage of losing cash costs, and the industry's clearing will accelerate. The current position should wait for the opportunity for a rebound in the sector brought by the stop of falling prices in the industrial chain. It is expected that prices will stop falling or in the second half of this year.