Today (February 24), another listed company – Wuxi Shangji Automation Co.Ltd(603185) (603185, SH) – threw out the silicon material expansion plan.
According to the announcement disclosed by Wuxi Shangji Automation Co.Ltd(603185) , the company is preparing to build a project with an annual output of 150000 tons of high-purity industrial silicon and 100000 tons of high-purity crystalline silicon. The whole project is divided into two phases. The design capacity of the first phase is 80000 tons of high-purity industrial silicon project and 50000 tons of high-purity crystalline silicon project. The second phase of the project will be promoted according to the market situation. The total investment of the project is expected to be 11.8 billion yuan, and the investment of phase I project is expected to be 6 billion yuan.
Wuxi Shangji Automation Co.Ltd(603185) the silicon material production plan is not only related to the high product price, but also regarded as the move of all links of the industrial chain. Wuxi Shangji Automation Co.Ltd(603185) also disclosed the convertible bond financing plan, which plans to increase the annual production capacity of 10GW photovoltaic monocrystalline silicon.
silicon wafer enterprise overweight silicon material
Today, Wuxi Shangji Automation Co.Ltd(603185) disclosed that the company plans to build projects with an annual output of 150000 tons of high-purity industrial silicon and 100000 tons of high-purity crystalline silicon. The whole project is divided into two phases. The design capacity of the first phase is 80000 tons of high-purity industrial silicon project and 50000 tons of high-purity crystalline silicon project. The second phase of the project will be promoted according to the market situation. The total investment of the project is expected to be 11.8 billion yuan, and the investment of phase I project is expected to be 6 billion yuan.
Wuxi Shangji Automation Co.Ltd(603185) said that the company has invested in the construction of photovoltaic monocrystalline silicon business since 2019, the production capacity has been continuously expanded, and the demand for raw materials has gradually increased in the production process. In order to ensure the supply of raw materials, the company plans to carry out silicon material production plan. From the perspective of investment progress, Wuxi Shangji Automation Co.Ltd(603185) is expected to reach production in 2023.
Wuxi Shangji Automation Co.Ltd(603185) also mentioned that at present, the market supply of raw material polysilicon is relatively tight and the price increases greatly. The company’s monocrystalline silicon production capacity continues to expand. The existing monocrystalline silicon production capacity has reached 30GW, and the demand for raw materials gradually increases in the production process. This investment will help the company obtain new channels for stable supply of silicon materials and ensure the supply of raw materials.
The Wuxi Shangji Automation Co.Ltd(603185) in the silicon wafer link is now also expanding to the upstream silicon material. This is not surprising. After all, in the past two years, the silicon material link can obtain excess returns in the whole photovoltaic industry chain.
According to the data of Aetna on February 23, the price range of China’s single crystal re feeding this week was 240000 yuan / ton ~ 249000 yuan / ton, and the average transaction price rose to 244900 yuan / ton, with a week-on-week increase of 0.78%; The price range of single crystal compact is 238000 yuan / ton ~ 247000 yuan / ton, and the average transaction price rises to 242400 yuan / ton, with a week-on-week increase of 0.71%.
Aetna expects that after the silicon wafer enterprises increase the operating rate, the monthly output is expected to be about 23.6gw, and the supply of China’s silicon market will remain relatively scarce in March.
Combing the performance forecast of silicon material enterprises, it is found that the upstream silicon material enterprises generally report good news. On February 13, Tongwei Co.Ltd(600438) (600438, SH) disclosed the performance express of 2021, which achieved a total operating revenue of 66.602 billion yuan, a year-on-year increase of 50.68%; The net profit attributable to shareholders of listed companies was 8.203 billion yuan, a year-on-year increase of 127.35%.
On January 24, Xinjiang Daqo New Energy Co.Ltd(688303) (688303, SH) disclosed the announcement of pre increase in performance. It is expected that the net profit attributable to the owners of the parent company will be RMB 5.6 billion ~ 5.8 billion in 2021, with a year-on-year increase of 436.69% ~ 455.86%.
previously predicted that last year’s performance increased significantly
The reporter of “daily economic news” noted that Wuxi Shangji Automation Co.Ltd(603185) extending the industrial chain is not necessarily stimulated by the high price of silicon material, but also considered to expand its own supply chain.
Today, Wuxi Shangji Automation Co.Ltd(603185) announced the silicon wafer expansion plan at the same time. The company plans to issue convertible bonds to raise 2.47 billion yuan for the purchase and installation of single crystal furnace, slicer and supporting equipment required to meet the annual production capacity of 10GW single crystal silicon wafer. The total investment of 10GW monocrystalline silicon wafer reached 3.5 billion yuan.
In the high boom stage of photovoltaic development, in the past two years, Wuxi Shangji Automation Co.Ltd(603185) has tasted the sweetness through capacity expansion.
According to the Wuxi Shangji Automation Co.Ltd(603185) performance forecast, after preliminary accounting, the company realized an operating revenue of 10.906 billion yuan last year, a year-on-year increase of 262.22%; The net profit attributable to shareholders of listed companies was 1.637 billion yuan, a year-on-year increase of 208.01%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 1.471 billion yuan, a year-on-year increase of 187.18%. The main reason for the performance growth is that in 2021, the company continued to expand the scale of monocrystalline silicon business as planned, the capacity continued to improve, and the capacity utilization rate and production and marketing rate remained at a high level. The sales scale of the company’s monocrystalline silicon business continued to expand, and the growth of sales revenue promoted the steady increase of the company’s performance.
Compared with the capacity expansion in the midstream only last year, Wuxi Shangji Automation Co.Ltd(603185) this year pays more attention to the control of the upper reaches of the industry.
In fact, the expansion heat of the upstream silicon material link is increasing this year. In addition to new players such as Wuxi Shangji Automation Co.Ltd(603185) , old players are also expanding production capacity. For example, Xinjiang Daqo New Energy Co.Ltd(688303) disclosed the refinancing plan at the beginning of this year. It is planned to raise no more than 11 billion yuan, which is mainly used for the project with an annual output of 100000 tons of high-purity silicon-based materials and supplement working capital, of which the total investment of high-purity silicon-based materials project is 8 billion yuan.
