Although the 210mm large silicon wafer of Shuangliang Eco-Energy Systems Co.Ltd(600481) ( Shuangliang Eco-Energy Systems Co.Ltd(600481) . SH) has not been mass produced, the price of this type of silicon wafer has increased for two months.
On the evening of March 9, pvinfolink disclosed the price of silicon wafer in the latest issue, including single crystal silicon wafer (210mm / 160) μ m) The price of each piece has increased by 0.25 yuan compared with the previous week. At present, the price of 8.85 yuan / piece has rebounded by about 15% compared with the low of 7.7 yuan / piece on January 5 this year.
After falling for four days in a row, Shuangliang Eco-Energy Systems Co.Ltd(600481) 3 on March 9, the share price finally stopped falling, rising 4.46% to close at 12.64 yuan.
Shuangliang Eco-Energy Systems Co.Ltd(600481) has been accelerating the construction of the project since it officially entered the large-scale monocrystalline silicon wafer industry in early 2021. However, according to the 2021 financial report just disclosed, behind the large-scale investment in the silicon wafer project is a rising balance sheet. Can its capital chain support such expansion?
large silicon wafer start
Shuangliang Eco-Energy Systems Co.Ltd(600481) 2021 annual report shows that the company’s current business is mainly divided into two parts: one is energy-saving and water-saving system, including “lithium bromide cooling and heating unit, heat exchanger, air cooler system, etc”; The second is the new energy system, including “polycrystalline silicon reduction furnace and its modules, large-size monocrystalline silicon ingots and silicon wafers.”
” Shuangliang Eco-Energy Systems Co.Ltd(600481) began to lay out the silicon wafer business early last year, mainly in Baotou, Inner Mongolia. It has made large-size silicon wafers from the beginning. At present, large-size silicon wafers are the development trend in the future,” a new industry analyst of a securities firm told the 21st Century Business Herald
In February 2021, Shuangliang Eco-Energy Systems Co.Ltd(600481) set up a subsidiary Shuangliang silicon materials (Baotou) Co., Ltd. (hereinafter referred to as Shuangliang Baotou company) to officially carry out phase I 20GW large-size monocrystalline silicon wafer business.
According to the prediction of China Photovoltaic Industry Association, the market share of 182mm + 210mm large-size photovoltaic silicon wafer will increase from less than 5% in 2020 to nearly 50% in 2021. More importantly, 210 size silicon wafers cannot be produced by transforming the existing silicon wafer production line below 166 size, while the 1600 furnace single crystal furnace purchased by Shuangliang Baotou company can directly produce 210 silicon wafers and give consideration to the production of 182 / 166 and other silicon wafers, meeting the needs of downstream enterprises for large-size replacement of silicon wafers.
silicon wafer price rebounded for more than two months
According to the latest data of pvinfolink, monocrystalline silicon wafer (210mm / 160 μ m) It has risen to 8.85 yuan / piece, rebounding by 15% in two months; Monocrystalline silicon wafer (182mm / 165) μ m) It rose to 6.7 yuan / piece, and has rebounded 17.54% since the low of 5.7 yuan / piece in mid December 2021.
This is good news for Shuangliang Eco-Energy Systems Co.Ltd(600481) which focuses on large-size silicon wafers.
According to the annual report of Shuangliang Eco-Energy Systems Co.Ltd(600481) 2021, With the acceleration of the construction and operation progress, the company strives to complete the construction of argon recovery workshop, cleaning and car washing room, 220kV substation and single crystal plant 2 in the first quarter of 2022, and realize the construction of single crystal plant 1 (a total of 5 Aluminum Corporation Of China Limited(601600) furnace single crystal furnaces) are fully put into operation. “
During the construction of the project, Shuangliang Eco-Energy Systems Co.Ltd(600481) also carried out the trial production of products simultaneously. In June 2021, Shuangliang Eco-Energy Systems Co.Ltd(600481) the first large-size monocrystalline silicon rod was successfully fired. In October 2021, small batch equipment commissioning of large-size monocrystalline silicon rod has been realized.
It is reported that in the fourth quarter of 2021, Shuangliang Eco-Energy Systems Co.Ltd(600481) of 182mm and 210mm square ingots / silicon wafers were shipped.
It is worth noting that Shuangliang Eco-Energy Systems Co.Ltd(600481) disclosed the monocrystalline silicon business for the first time in the 2021 annual report. Among them, the revenue of monocrystalline silicon is 235 million yuan, the cost is 263 million yuan, and the gross profit margin is – 12.05%. The sales volume of monocrystalline silicon is 35.42 million pieces, and the average price of each piece is 6.64 yuan (excluding tax).
AVIC securities research report pointed out that if measured by 182 silicon wafers, 35.42 million wafers correspond to a sales volume of no more than 0.27gw. In the current monocrystalline silicon business cost, polycrystalline silicon material is 182 million yuan, accounting for 77.20% of the revenue. “The reason for the negative gross profit of monocrystalline silicon business in this period may be that, on the one hand, the price of silicon wafer was in the downward range in the fourth quarter of 2021, and the price of 182 silicon wafer was 5.7 yuan / wafer at the end of December, 17% lower than that at the beginning of October; on the other hand, the company’s production capacity is still in the climbing stage, and the scale effect needs to be further improved, resulting in negative gross profit.”
From the current production and marketing situation, the proportion of silicon wafer production and marketing in Shuangliang Eco-Energy Systems Co.Ltd(600481) 2021 exceeded 93%. Therefore, AVIC Securities Research Report believes that with the gradual increase of capacity utilization of Shuangliang Eco-Energy Systems Co.Ltd(600481) and the recovery of silicon wafer price in the first quarter of 2022, the company’s monocrystalline silicon business is expected to be profitable in the future.
fixed increase may solve the financial pressure
According to the statistics of the 21st Century Business Herald reporter, since October 14, 2021, Shuangliang Baotou company has obtained the first silicon wafer order. So far, the company has signed eight large orders, with a total amount of about 63.686 billion yuan. The time cycle is from 2022 to 2024, of which the silicon wafer sales are about 7.59 billion pieces and the sales amount is about 53.402 billion yuan; In addition, the sales amount of single crystal square ingot is 7.197 billion yuan and that of single crystal silicon square rod is 3.087 billion yuan.
According to this calculation, the sales of 63.686 billion yuan is apportioned over three years, and the annual sales amount is about 21.2 billion yuan.
Shuangliang Eco-Energy Systems Co.Ltd(600481) 2021 annual report shows that the company achieved an operating revenue of 3.83 billion yuan, a year-on-year increase of 84.87%; The net profit attributable to the parent company was 310 million yuan, a year-on-year increase of 125.68%.
It can be seen that the sales of Shuangliang Eco-Energy Systems Co.Ltd(600481) ‘s silicon wafer business in the next three years will be far greater than the current company’s revenue.
“Shuangliang’s project in Baotou is divided into two phases, with a total capacity of 40gw. It can not only produce silicon wafers with specifications of 210mm and below, but also produce large-size p-type / n-type silicon wafers, so it also won a lot of orders last year.” According to the new industry analyst of a securities firm mentioned above, Shuangliang Eco-Energy Systems Co.Ltd(600481) at present, the biggest pressure may come from the capital, “if the fixed increase of 3.488 billion yuan this year can be in place within this year, the asset liability ratio of Shuangliang Eco-Energy Systems Co.Ltd(600481) will come down, otherwise it may affect the solvency of the company.”
As of December 31, 2021, Shuangliang Eco-Energy Systems Co.Ltd(600481) has an asset liability ratio of 72.66%, while its asset liability ratio as of December 31, 2020 is only 46.16%.
In order to meet the actual capital needs of the company’s operation, Shuangliang Eco-Energy Systems Co.Ltd(600481) also said that it plans to borrow no more than 5 billion yuan in 2022. Assuming that 5 billion yuan is fully withdrawn, the asset liability ratio of Shuangliang Eco-Energy Systems Co.Ltd(600481) will reach about 82.43%.
From the perspective of financial statements, Shuangliang Eco-Energy Systems Co.Ltd(600481) total assets increased by 4.882 billion yuan, liabilities increased by 4.636 billion yuan, of which current liabilities increased by 3.790 billion yuan. Among current liabilities, contract liabilities (increased by 611 million yuan), short-term borrowings (increased by 827 million yuan), notes payable and accounts payable (increased by 1.041 billion yuan) and other payables (increased by 1.072 billion yuan, mainly for infrastructure projects and equipment, increased by 1.089 billion yuan).
The above four increased by 3.55 billion yuan in total, basically corresponding to the increase of construction in progress (increased by 1.872 billion yuan), fixed assets (increased by 674 million yuan), inventories (increased by 609 million yuan) and monetary funds (increased by 692 million yuan) in Shuangliang Eco-Energy Systems Co.Ltd(600481) 2021 (increased by 3.847 billion yuan in total).
AVIC Securities believes that since the company officially launched phase I 20GW large-size monocrystalline silicon chip business during the reporting period, with a total investment of RMB 7.487 billion, it is normal for the company’s debt ratio to increase significantly in this period. “Considering that the company’s plan to raise 3.488 billion yuan has been approved by the CSRC in January 2022, and the cash flow brought to the company by the monocrystalline silicon business itself, we believe that the sharp increase in the company’s debt ratio in this period will not have a great impact on the normal operation in the future.”
If Shuangliang Eco-Energy Systems Co.Ltd(600481) this year’s 3.488 billion yuan refinancing is in place, its asset liability ratio will be reduced to 65.98%, and the asset structure will be further optimized.
It is worth noting that, compared with the third quarterly report of last year, Shuangliang Eco-Energy Systems Co.Ltd(600481) 2021 annual report has seen more changes in the top ten shareholders of tradable shares. In the last four quarters of last year, SAIC Morgan vision and SAIC Morgan emerging power reduced their holdings of 8767300 shares and 9158900 shares respectively, and ranked the seventh and tenth largest shareholders of tradable shares of the company with 103431 million shares and 8.3715 million shares respectively.
Judging from the secondary market, Shuangliang Eco-Energy Systems Co.Ltd(600481) this year’s increase has reached 25.65%. Perhaps the continued rise in the price of silicon wafers can arouse the interest of institutional investors in the stock.
