This week’s view
This week, the power equipment and new energy index soared by 3.96%, of which the photovoltaic index soared by 9.45%. The top five increases in the new power sector are related to the photovoltaic business. With the rationalization of the overall valuation level of track stocks, the industry benefits such as data exceeding expectations and policy promotion gradually appeared, pushing the industry out of the downward trend.
Photovoltaic has been doing well recently, but from the perspective of relevance, the main reasons for the sharp rise for two consecutive weeks are as follows: 1) the installed capacity data of photovoltaic in January exceeded the market expectation, with a total installed capacity of 7gw, a year-on-year increase of 200%, and the distributed installed capacity of 4.5gw, a year-on-year increase of 250%. The industry reflects a strong endogenous driving force and significantly improves the annual installed capacity expectation. 2) The price of silicon material and installed capacity have increased at the same time. The price of photovoltaic silicon material and silicon wafer has increased slightly in the past month. However, from the installed capacity in January and the production scheduling data in the following two months, the production capacity has continued to increase. Meanwhile, the downstream installed price has exceeded 1.9 yuan / W, and the downstream tolerance of the industry has significantly increased the operating rate of the whole industry. 3) The latest good news in China’s module bidding market in 2022 has been reported frequently. As of February 20, central enterprises and state-owned enterprises such as CNNC and China resources have centrally released 45gw of photovoltaic module procurement projects. This data has exceeded the annual data of 2021, and the bid winning price is up to 1.96 yuan / W, which further confirms that 2022 is the great year of photovoltaic.
We have recommended the photovoltaic sector for several weeks in a row and will continue to recommend it later. This year’s photovoltaic sector will be similar to last year’s new energy vehicle sector, with key photovoltaic industry leaders: Longi Green Energy Technology Co.Ltd(601012) , Sungrow Power Supply Co.Ltd(300274) , etc.
Market performance
This week, the Shanghai Composite Index fell 1.13% to close at 345141; CSI 300 fell 1.67% to close at 457342; CITIC power new energy industry index rose 3.96%, outperforming the Shanghai and Shenzhen 300 index by 5.63%. In terms of sub sectors, the new energy vehicle index rose 1.11%, the photovoltaic index rose 9.45% and the wind power index rose 1.14%.
Some company dynamics
On February 22, 2022, Trina Solar Co.Ltd(688599) announced that in 2021, the company achieved a total operating revenue of 44.490 billion yuan, an increase of 51.23% over the previous year; The net profit attributable to the owners of the parent company was 1.876 billion yuan, an increase of 52.64% over the previous year; The basic earnings per share is 0.91 yuan. The company obtained 210 large-size battery module technology and product advantages, which further improved the market share of the company’s photovoltaic products and achieved a significant increase in operating revenue compared with the same period last year. (announcement of the company) on February 22, 2022, Longi Green Energy Technology Co.Ltd(601012) again raised the price of monocrystalline silicon wafer. Compared with the previous quotation, the price of silicon wafers of different sizes increased by 0.1 yuan / piece to 0.12 yuan / piece. This is also the third time that Longi Green Energy Technology Co.Ltd(601012) has raised the price of silicon wafers since the beginning of the year. (official website of the company)
Risk tips
The risk of intensified market competition, repeated epidemic and subsidy policy.
