At present, photovoltaic convertible bonds enjoy high popularity in the market.
On the afternoon of February 23, Tongwei Co.Ltd(600438) held a roadshow of convertible corporate bond “Tong 22 convertible bond” (110085. SH) at the Shanghai Securities roadshow center.
Previously, the company announced that the total amount of funds raised by “Tong 22 convertible bonds” (110085. SH) was 12 billion yuan, and the initial conversion price was 39.27 yuan / share. As the largest photovoltaic convertible bond issued so far, the “Tong 22 convertible bond” issuance plan has attracted market attention once it was released.
21st Century Business Herald reporter noted that up to now, the scale of photovoltaic convertible bonds is expanding. According to the statistics of Tianfeng Securities Co.Ltd(601162) , there are currently 19 stocks and 3 photovoltaic convertible bonds to be listed, with a total bond balance of 44.134 billion yuan. Among them, the subject company involved in the bond has covered the whole photovoltaic industry chain, and is dominated by leading enterprises in all links. After the Spring Festival holiday in the year of the tiger, a total of four photovoltaic convertible bonds were issued or to be listed, with a bond scale of 22.367 billion yuan, reaching a new high.
“At present, the prosperity of the photovoltaic industry is determined, the financing needs of major enterprises are high, and convertible bonds have become an important financing tool.” The fixed income analyst of a securities firm told the 21st Century Business Herald reporter that the characteristics of convertible bond financing, such as low financing cost and little impact on the timeliness of equity, are superimposed on the broad development prospects of the current photovoltaic industry, making the current photovoltaic convertible bond enjoy a high heat in the market.
the scale of photovoltaic convertible bonds exceeds 44 billion yuan
Since this year, the four photovoltaic convertible bonds listed and to be issued are respectively “long 22 convertible bonds” (113053. SH), “jinlang convertible bonds” (123137. SZ), “Tong 22 convertible bonds” and Wuxi Shangji Automation Co.Ltd(603185) . Among them, the issuance scale of “long 22 convertible bonds” is 7 billion yuan with a term of six years.
In 2017 and 2020, Longi Green Energy Technology Co.Ltd(601012) successively issued convertible bonds with a scale of 2.8 billion yuan and 5 billion yuan respectively, which were sought after by institutional investors. The “long 22 convertible bond” is also the largest convertible bond financing since the company was listed.
Although the financing issuance of convertible bonds encountered an episode – on January 11, Longi Green Energy Technology Co.Ltd(601012) announced the issuance results of 7 billion yuan of convertible bonds “long 22 convertible bonds”. The original shareholders and online social public investors subscribed for 4.347 billion yuan and 2.603 billion yuan respectively. About 50 million subscription amount of online social public investors was abandoned and finally underwritten by the joint lead underwriter. However, on the first day of listing on February 17, “long 22 convertible bonds” maintained a certain popularity on the first day of listing, with an increase of 25.38%.
According to the statistical data of Tianfeng Securities Co.Ltd(601162) , after the “tong22 convertible bonds” and “jinlang convertible bonds” are successively issued and listed, the whole photovoltaic sector will usher in 21 listed convertible bonds. The convertible bond issuance scheme of photovoltaic silicon chip upstart Wuxi Shangji Automation Co.Ltd(603185) was also approved by the CSRC in the fourth quarter of last year, with an amount of 2.47 billion yuan. So far, the scale of the above 22 photovoltaic convertible bonds has reached 44.134 billion yuan.
The 21st Century Business Herald reporter found that in the fields related to silicon materials and silicon wafers upstream of the industrial chain, several convertible bonds have been issued in recent years, such as quartz convertible bonds (113548. SH) mainly engaged in high-purity quartz sand manufacturers, Jinbo convertible bonds (118001. SH) and Chujiang convertible bonds (128109. SZ) involving the field of thermal field system, And dale convertible bonds (123024. SZ) of diamond line manufacturers and three super convertible bonds (123062. SZ) of diamond grinding wheel manufacturers.
In the middle and lower reaches, inverter giant Ginlong Technologies Co.Ltd(300763) also recently issued jinlang convertible bonds, with a convertible bond amount of 897 million yuan, a conversion value of 89.11, and a shareholder placement rate of 19.55%.
Recently, in the component link, the leading enterprise Trina Solar Co.Ltd(688599) announced that Trina Solar convertible bonds (118002. SH) will be convertible from February 21, with a conversion price of 50.4 yuan / share and a conversion premium of 19.54% until August 12, 2027. At that time, the scale of Trina Solar convertible bonds issued by it reached 5.252 billion yuan.
In the middle reaches of the industrial chain, several battery chip related manufacturers have also issued convertible bonds, such as Jingrui convertible bond (123031. SZ), dill convertible bond (123121. SZ) and Jingrui Zhuan 2 (123124. SZ), with the issuance scale of 53 million yuan, 840 million yuan and 523 million yuan respectively. In addition, among the listed companies related to auxiliary materials, Qibin convertible bond (113047. SH) issued 1.499 billion bonds, and its main business is photovoltaic glass; Cybrid Technologies Inc(603212) is the leader in photovoltaic backplane, adhesive film and power station maintenance materials. The issuance scale of Saiwu convertible bond (113639.sh) is 700 million yuan; The scale of Shenghong convertible bonds (127030. SZ) issued by photovoltaic EVA manufacturer Jiangsu Eastern Shenghong Co.Ltd(000301) reached 4.999 billion yuan, second only to Tongwei Co.Ltd(600438) , Longi Green Energy Technology Co.Ltd(601012) and Trina Solar Co.Ltd(688599) .
As for the power generation of downstream power stations, the issuance scale of Jiaze convertible bonds (113039. SH), Jingke convertible bonds (113048. SH), jiuzhouzhuan 2 (123089. SZ) and Zhongzhuang Zhuan 2 (127933. SZ) are 288 million yuan, 2.297 billion yuan, 206 million yuan and 1.16 billion yuan respectively. Among them, the issuance of large-scale Jingke convertible bonds once rose to 211.58 yuan in September last year.
According to the research report statistics of the previous Tianfeng Securities Co.Ltd(601162) , except that the convertible bond prices of quartz convertible bond and Jingrui convertible bond reached 409.51 yuan and 409 yuan respectively, the prices of other subject convertible bonds were not widely differentiated, basically ranging from 127 yuan to 187 yuan, and the convertible bond premium rate was mostly between 1% and 45%.
industrial development supports the popularity of photovoltaic convertible bonds
In 2018, “531 photovoltaic policy” made China’s photovoltaic industry step on the “brake” once. In this context, at the end of July of that year, Tongwei Co.Ltd(600438) announced that its application for public issuance of convertible corporate bonds had been examined and approved by the issuance Audit Committee of the CSRC. This became the first financing case approved for issuance in China’s photovoltaic industry after the implementation of the “531 photovoltaic New Deal”.
The industry regards this event as a, and the state and capital level still have confidence in the development of photovoltaic industry. According to the issuance announcement, at that time, Tongwei Co.Ltd(600438) plans to raise no more than 5 billion yuan through convertible bonds for the construction of 25000 tons of high-purity polysilicon projects in Baotou and Leshan respectively.
In April 2019, “Tongwei convertible bond” (110054. SH) was listed. At that time, when the development of China’s photovoltaic industry entered a short and slow stage, the bond closed up 19.90% on the first day of listing. However, with the fluctuation of industrial development, the price of “Tongwei convertible bonds” also fluctuates. On the date of redemption on March 16, 2020, the price of the bond is as low as 104 yuan.
In fact, the case of “Tongwei convertible bonds” reflects that the popularity of convertible bonds is closely related to the development of photovoltaic industry to a certain extent – when the prosperity of the industry fluctuates, the price of photovoltaic convertible bonds also follows the market.
Take the newly listed “long 22 convertible bond” as an example. As of February 23, the price of the bond was 126.31 yuan, up 1.49%. In the four trading days after listing, the price of “long 22 convertible bonds” fluctuated, and the trend was almost consistent with that of positive stocks. Among them, the bond prices fell on February 18 and February 21.
This has something to do with the adjustment of the whole A-share photovoltaic sector after the Spring Festival in the year of the tiger. In the context of the rise of price game sentiment in the industrial chain, the market showed concern about the profitability of some links of the industrial chain in the first quarter.
It is worth mentioning that under the fierce game of the industrial chain, the main purpose of large-scale issuance of convertible bonds by listed companies is to expand production.
For example, the Tongwei Co.Ltd(600438) 12 billion yuan raised by convertible bonds is intended to be used for photovoltaic silicon material manufacturing technical transformation project (phase II high-purity crystalline silicon project), photovoltaic silicon material manufacturing project (phase II 50000 tons high-purity crystalline silicon project), 15gw single crystal rod cutting project, etc; The convertible bonds of Longi Green Energy Technology Co.Ltd(601012) 7 billion yuan will be used for the project of high-efficiency single crystal battery with an annual output of 15gw, the project of manufacturing single crystal battery with an annual output of 3gw and replenishing working capital; For Wuxi Shangji Automation Co.Ltd(603185) that has not yet issued convertible bonds, it is planned to invest all the raised funds in Baotou single crystal silicon crystal drawing and supporting production projects with an annual output of 10GW; The funds raised by the convertible bonds of the module leader Trina Solar Co.Ltd(688599) are used to strengthen the integrated construction, including the annual output of 16GW high-efficiency Cecep Solar Energy Co.Ltd(000591) battery project in Yancheng, the annual output of 10GW high-efficiency Cecep Solar Energy Co.Ltd(000591) battery project (phase II 5GW in Suqian), the annual output of 8GW high-efficiency Cecep Solar Energy Co.Ltd(000591) battery project in Suqian (phase III), Yancheng Dafeng 10GW photovoltaic module project, etc.
On February 23, Wang Bohua, honorary chairman of China Photovoltaic Industry Association, pointed out at the “online seminar on 2021 development review and 2022 situation outlook” that China’s photovoltaic industry continued to make rapid progress in 2021, with rapid growth in manufacturing, application and import and export. Among them, the output value of the fourth ring link of China’s photovoltaic manufacturing end exceeded 750 billion yuan.
