introduce:
The evening of October 30, photovoltaic leading LONGi green energy (601012.SH) released 2023 three quarterly financial results, the company realized operating income of 94.100 billion yuan in the first three quarters, an increase of 8.55% year-on-year; the first three quarters to achieve net profit of 11.694 billion yuan, an increase of 6.54% year-on-year; of which, in the third quarter to achieve operating income of 29.448 billion yuan, down 18.92%; third quarter to achieve net profit of 2.515 billion yuan, down 44.05% year-on-year. 18.92%; the third quarter realized net profit of 2.515 billion yuan, a year-on-year decline of 44.05%.
The whole industrial chain expansion, price cuts, resulting in weak performance
As a photovoltaic plate market capitalization of the highest enterprises, but also in the silicon wafer, battery, module three links production capacity, shipments are ranked among the top of the integration of the leading, LONGi Green Energy's operating results have always been regarded as one of the industry wind vane, the industry chain upstream and downstream of the performance of the stock price of many enterprises also has a greater impact.
According to the report, although the year-on-year growth in production capacity and sales supported the positive growth of LONGi Green Energy's revenue and net profit in the first three quarters, the year-on-year and year-on-year performance in the third quarter was significantly weaker than the market's expectations. The report summarizes the main reasons for the decline in net profit as follows: a decrease in investment income and exchange gains, an increase in inventory loss, an increase in research and development expenses, and the impact of accelerated exercise of share-based payment. This is an objective response to the current status quo of PV industry chain overcapacity and price downturn.
In the upstream silicon link, LONGi Green Energy's direct income mainly comes from the investment income of participating in Yunnan Tongwei, due to the continuous decline in the price of silicon this year, the part of the investment income is low. According to the report, the company's investment income from associates and joint ventures fell 32.2% year-on-year.
As silicon wafer production capacity "big", silicon material price cuts are conducive to silicon open profit space, but silicon wafer link due to industry overcapacity caused by the wave of price reductions but came a little more than silicon material "inferior".
LONGi Green Energy financial report, with the rapid expansion of new production capacity in all segments of the industry chain and the continuous decline in industry chain prices, the PV industry competition has further intensified. According to Info Link's latest data, the recent P-type M10, N-type 182mm monocrystalline silicon wafer average transaction price of 2.54 yuan / slice, 2.59 yuan / slice, compared with the beginning of the year are down more than 25%. Some industry insiders say that the overall operating rate of silicon wafer plant may have been less than 80%, to inventory more and more become the main line of logic, many manufacturers are eager to ship at low prices, the current price of silicon wafer has touched the break-even point of some enterprises. Although the current point of view of the LONGi green energy silicon wafer start rate affected by the smaller, but continued low prices obviously squeezed its profits. For the trend of the fourth quarter, Jibang Consulting judgment that wafer prices across the board, downstream purchasing demand shrinkage, the upstream cost side of the lack of support, wafer prices or will be difficult to stop the downward trend.
Another important position of LONGi green energy components are also facing the double impact of overcapacity and falling prices. According to the financial report, in the first three quarters of 2023, LONGi Green Energy realized monocrystalline component shipments of 43.53GW, of which 16.89GW of components shipped in the third quarter, although year-on-year improvement, but less than expected compared to its production capacity, the problem of inventory backlogs has emerged. And the current component market fierce price war not only compressed LONGi green energy component shipments, but also caused its inventory decline. Previously, the third batch of Huadian Group's 2023 PV module collection bidding had a historically low offer of $0.993/W. According to InfoLink's data, the component execution price was also as low as $1.05/W. In response to this status quo, Liu Yuxi, president of LONGi Green Energy's China regional department, recently said publicly that this year's component price drop exceeded the earliest expectations of the enterprise, and can almost be called a "panic fall", and said that component prices fell below 1 yuan means that the real cost. Liu Yuxi also bluntly pointed out that the current price war exists in the power false labeling, silicon, film, frame thinning and other undesirable phenomena, the industry as a whole has a negative impact.
Continue to bet on BC battery technology route, profitability remains to be seen
In addition to the wave of production expansion, price war, the second half of this year, the PV industry's most high-profile event is the LONGi official announcement of betting on BC battery technology route, before the titanium media app also tracked the relevant situation (All in BC battery.)! "LONGi's flag is flying high, where will the PV melee go? LONGi again throw BC route heavy announcement, photovoltaic battery route battle is in full swing).
In the third quarterly report, LONGi Green Energy once again expressed its determination to vigorously develop BC technology, reporting that the company focused on the iterative upgrading and industrialization of high-efficiency BC technology during the reporting period, and continued to improve the yield and conversion efficiency of HPBC products in mass production. With the in-depth research and development of high-efficiency BC technology and the advancement of production capacity construction, the production capacity of higher performance HPBC pro cells is expected to be put into production by the end of 2024.
However, at present, in the third-generation N-type battery technology route dispute, TOPCon camp performance is better.
According to the company's recently released financial results, TOPCon camp "flag bearer" Jinko Solar (688223.SH) in the first three quarters of operating income of 85.097 billion yuan, an increase of 61.25% year-on-year; to achieve net profit of 6.354 billion yuan, an increase of 279.14% year-on-year. Among them, the third quarter realized net profit of 2.511 billion yuan, up 225.79% year-on-year. The company also said that the increase in the share of N-type shipments was one of the main reasons for the increase in net profit. Another giant Trina Solar (688599.SH) also doubled its profit in the first three quarters, including a net profit of 1.537 billion yuan in the third quarter, a year-on-year increase of 35.67%. In addition to the above in the battery, components have a deeper layout of the enterprise, focus on TOPCon battery Junda shares (002865.SZ) also achieved net profit of ultra-expected growth, the company's first three quarters of net profit year-on-year growth of 299.21%, of which the third quarter jumped 396.34%.
At present, photovoltaic battery iteration speed is accelerating, the third generation of N-type battery market share continues to go up, "change of dynasties" at the time, LONGi Green Energy invested a large sum of R & D costs bet on the profitability of the BC technology route, whether to take the lead in the scaling of the TOPCon products, "bending the road to overtake! "It remains to be seen.
In addition to the above information, the financial report also disclosed that the company's net cash flow from operating activities in the third quarter decreased by 54.23%, mainly due to the scale of expansion of operating payments increased, the relative decrease in advance receipts. In addition, according to the Oriental Wealth Choice data, the company's asset impairment loss of 1.099 billion yuan in the third quarter, an increase of 852 million yuan compared to the same period last year.
October 30 before the disclosure of the third quarter report, LONGi green energy stock price closed at 25.16 yuan / share, up 0.72% over the previous trading day, compared with the beginning of the year 49.08 yuan / share of the high point has fallen 48.8%; the current total market capitalization of 190.7 billion yuan, although still for the photovoltaic plate absolute "chair", but compared with the market value of more than 500 billion yuan in 2021, the company's market capitalization of more than 500 billion yuan. 2021 more than 500 billion market value has shrunk more than 60%.
In the three quarterly report disclosure at the same time, Longi Green Energy also announced that the company chairman Zhong Baoshen intended to 100 million yuan - 150 million yuan to increase the company's shares, as of October 30, 2023, Zhong Baoshen holds 98,358,300 shares of the company, accounting for the total number of shares of the company's 1.3%. Longi Green Energy also said that Zhong Baoshen's share increase is based on the confidence in the company's sustainable and stable development in the future and the recognition of long-term investment value, with the aim of safeguarding the interests of shareholders and enhancing investor confidence.
Tag: #Longi #photovoltaic #Longiprice #Longi mark down #Longi overcapacity
Post time: Nov-14-2023