Recently, the news of Ja Solar Technology Co.Ltd(002459) ( Ja Solar Technology Co.Ltd(002459) . SZ) kept coming. First, the fixed increase plan of 5 billion yuan was approved, then 10 billion yuan was invested in the green photovoltaic new energy base in six years, and then the photovoltaic energy storage field was launched.
On the road of photovoltaic integration, Ja Solar Technology Co.Ltd(002459) goes further and further. Industry insiders pointed out that driven by the background of affordable Internet access, leading companies must realize the secondary growth of profits through integration, lengthen production lines, strengthen industrial barriers and reduce costs again. Who can take the lead in achieving integration, who can occupy the next round of competitive advantage.
But who will be the new winner of this round of photovoltaic integration?
from US stocks to a shares, the market value increased by 100 billion in two years
Ja Solar Technology Co.Ltd(002459) was founded in 2005 and landed on NASDAQ on February 7, 2007. At that time, it was referred to as Jingao Cecep Solar Energy Co.Ltd(000591) (transaction code: Jaso). In 2010, Jingao Cecep Solar Energy Co.Ltd(000591) became the world’s largest manufacturer of Cecep Solar Energy Co.Ltd(000591) batteries.
Market value of Jingao Cecep Solar Energy Co.Ltd(000591) in US stocks source: choice terminal
However, China’s photovoltaic products suffered “double reverse” successively. Affected by this, the net profit attributable to parent company of Jingao Cecep Solar Energy Co.Ltd(000591) from 2011 to 2013 was -564 million yuan, – 1662 million yuan and -474 million yuan respectively. Its share price also fell all the way from the highest of more than $50 to $7.49 at the time of privatization and delisting in 2018, with a total market value of only $356 million.
In October 2012, the average closing price for 30 consecutive trading days was lower than US $1, and Jingao Cecep Solar Energy Co.Ltd(000591) had received a delisting warning letter. In 2017 and 2018, the average p / E ratio was only 4 times and 7.4 times.
On November 17, 2017, Jingao Cecep Solar Energy Co.Ltd(000591) announced that it would be acquired and privatized in an all cash transaction of US $362 million. It was officially delisted on July 17, 2018.
Jingao Cecep Solar Energy Co.Ltd(000591) is planning to list in A-Shares while delisting in US stocks. In 2018, the company approached Tianye Tonglian ( Ja Solar Technology Co.Ltd(002459) . SZ). In January 2019, Tianye Tonglian released the plan for major asset transactions, saying that the company plans to purchase 100% equity of Jingao Cecep Solar Energy Co.Ltd(000591) 100% by issuing shares, the estimated value of the underlying assets is 7.5 billion yuan, and Jingao Cecep Solar Energy Co.Ltd(000591) will realize backdoor listing. On December 13, 2019, Jingao Cecep Solar Energy Co.Ltd(000591) officially landed in a shares.
On December 12, 2019, Tianye Tonglian ( Ja Solar Technology Co.Ltd(002459) . SZ) announced that after the company applied to Shenzhen Stock Exchange and approved by Shenzhen Stock Exchange, the securities abbreviation of the company was changed from “Tianye Tonglian” to ” Ja Solar Technology Co.Ltd(002459) “, the English abbreviation was changed from “Tianye tolian” to “ja solar”, and the securities code of the company remained unchanged as ” Ja Solar Technology Co.Ltd(002459) “.
The market value of the company was 15.1 billion yuan on December 13, 2019 and 142.4 billion yuan on March 9, 2022. In the two years and four months since the backdoor listing, the market value of the company has increased by more than 127 billion yuanP align = “center” Ja Solar Technology Co.Ltd(002459) in the market value of a shares; Source: choice terminal
At that time, most of the photovoltaic companies listed in U.S. stocks have also gathered in a shares.
Tianhe Guangneng, which was listed on the New York Stock Exchange in 2006, landed in A-Shares in 2020 after delisting;
Daquan new energy, which was listed on NASDAQ in 2010, its holding subsidiary Xinjiang Daqo New Energy Co.Ltd(688303) ( Xinjiang Daqo New Energy Co.Ltd(688303) . SH) has landed A-Shares in July 2021;
Jingke energy, which was listed on the New York Stock Exchange in 2010, also landed in A-Shares on January 26, 2022. The value of these three companies in a stock market exceeded 100 billion yuan;
Atlas (a21270. SH) has also obtained the approval of the IPO of the CSRC and is about to land in China’s capital market.
Data source: choice terminal
photovoltaic integration who will be the new winner
As more and more photovoltaic enterprises gather a shares, will the pattern of photovoltaic enterprises be rewritten in the capital market?
Ja Solar Technology Co.Ltd(002459) , Longi Green Energy Technology Co.Ltd(601012) ( Longi Green Energy Technology Co.Ltd(601012) . SH), Tongwei Co.Ltd(600438) ( Tongwei Co.Ltd(600438) . SH), Trina Solar Co.Ltd(688599) ( Trina Solar Co.Ltd(688599) . SH), Jingke energy (688223. SH), and the upcoming atlas are taking the road of photovoltaic component integration.
Photovoltaic upstream and downstream
Taking Ja Solar Technology Co.Ltd(002459) as an example, the company’s battery output was in the forefront in 2010. Then the company encountered a development bottleneck, so it began to expand its business upstream and downstream. It has the production capacity of the whole photovoltaic industry chain from crystal drawing / ingot → silicon wafer → Cecep Solar Energy Co.Ltd(000591) battery chip → Cecep Solar Energy Co.Ltd(000591) battery module. The products mainly include silicon chips, Cecep Solar Energy Co.Ltd(000591) battery chips and Cecep Solar Energy Co.Ltd(000591) battery components.
Ja Solar Technology Co.Ltd(002459) involved business; Source: annual report of the company
Expanding from photovoltaic cells to upstream and downstream, expanding Ja Solar Technology Co.Ltd(002459) profit space. From 2015 to the first three quarters of 2021, the company’s revenue increased from 14 billion yuan to 26 billion yuan, and the net profit attributable to the parent increased from more than 700 million yuan to 1.3 billion yuan. In less than five years, both revenue and net profit increased by more than 85%.
Drawing: Yin Jingfei; Data source: choice terminal
The main task of the component link is to package the power generation unit and sell it to end customers. Compared with the silicon wafer and battery link, the technical barrier is low and the gross profit margin is low. According to the data of PV InfoLink, the gross profit margin from high to low is silicon wafer (39.22%), battery (13.10%) and module (4.61%).
whether it is Longi Green Energy Technology Co.Ltd(601012) , the first in market value, or “living fossil of photovoltaic” Ja Solar Technology Co.Ltd(002459) , photovoltaic integration has been promoted for more than ten years. The current development of the industry once again gives photovoltaic integration new strategic significance
At present, photovoltaic parity on the Internet has become a general trend. Insiders pointed out that driven by this background, leading companies must realize the secondary growth of profits through integration; At the same time, lengthen the production line, strengthen industrial barriers and reduce the cost again. Who can take the lead in achieving integration, who can occupy the next round of competitive advantage.
Ja Solar Technology Co.Ltd(002459) said that a small part of intermediate products such as silicon chips and Cecep Solar Energy Co.Ltd(000591) battery chips produced by itself were sold to the outside world, and was used to continue processing into Cecep Solar Energy Co.Ltd(000591) battery components before selling to the outside world. The products exported are mainly Cecep Solar Energy Co.Ltd(000591) battery modules, and overseas sales contribute most of the company’s revenue and net profit.
The company’s expansion of photovoltaic upstream and downstream continues. From March 7 to 9, the company said that more than 3 billion yuan will be used for the production of upstream silicon wafers, and 10 billion yuan will be invested in the midstream and downstream of photovoltaic in the next six years.
On March 7, Ja Solar Technology Co.Ltd(002459) ( Ja Solar Technology Co.Ltd(002459) . SZ) announced that the fixed increase plan of 5 billion yuan was approved by the CSRC. The fixed increase plan includes that RMB 3.2 billion will be used for the project of annual output of 20GW monocrystalline silicon rod and 20GW monocrystalline silicon wafer, and RMB 300 million will be invested in the pilot project of high-efficiency Cecep Solar Energy Co.Ltd(000591) battery research and development;
On March 7, the company announced that it had signed the investment framework agreement with Qujing Municipal People’s government and the Management Committee of Qujing Economic and Technological Development Zone. In the next six years, the company plans to invest in the development and construction of “green photovoltaic new energy base” in Qujing City, with a total investment of about 10 billion yuan, Including the manufacturing base of high-efficiency Cecep Solar Energy Co.Ltd(000591) batteries and 5GW components with a scale of no less than 10GW and the new energy power station project.
The announcement on signing the strategic cooperation agreement on March 9 said that in order to further promote the development of photovoltaic business and give further play to the respective advantages of Party A in the photovoltaic field and Party B in the energy storage field of , the company and histron signed the strategic cooperation agreement on March 9, 2022, adhering to the purpose of “win-win cooperation”, It is proposed to conduct all-round and in-depth cooperation in business fields including but not limited to household energy storage system ( including photovoltaic energy storage integrated machine) and related power electronic equipment R & D and manufacturing, industrial and commercial distributed photovoltaic and energy storage project development , construction and operation of overseas large-scale photovoltaic energy storage projects, construction of overseas power trading platform, etc, Establish strategic partnership.
Accelerate the occupation of the upstream and downstream of the photovoltaic industry. Can the integration strategy enable Ja Solar Technology Co.Ltd(002459) to take the lead in the industry competition? This is not easy.
In the first three quarters of 2021, the first three quarters of the first year of 2021 year \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ Trina Solar Co.Ltd(688599) , lower than the other four enterprises Ja Solar Technology Co.Ltd(002459) photovoltaic modules are not competitive in the market
Drawing: Yin Jingfei; Data source: choice terminal
it should also be noted that compared with the same industry, Ja Solar Technology Co.Ltd(002459) gross profit margin has declined seriously
Affected by factors such as the rise in the price of upstream silicon wafers, the gross profit margin of photovoltaic module enterprises has continued to decline in recent years. In addition to Tongwei Co.Ltd(600438) , compared with 2019, the gross profit margin of Trina Solar Co.Ltd(688599) , Longi Green Energy Technology Co.Ltd(601012) and Jingke energy decreased by 22%, 26% and 28% respectively in the first three quarters of 2021, and the gross profit margin of Tongwei Co.Ltd(600438) rose by 36.8%.
photovoltaic integration has not outperformed its peers. Compared with the above four companies, Ja Solar Technology Co.Ltd(002459) has the largest decrease in gross profit margin from 2019 to the first three quarters of 2021, the company’s gross profit margin decreased from 21.26% to 13.98%, a decrease of more than 34%.
Drawing: Yin Jingfei; Data source: choice terminal
At present, from the upstream to the midstream, and then to the downstream, photovoltaic module companies are mostly enclosure. According to the incomplete statistics of the interface news reporter, since October 2021, companies including Jingke energy, Tongwei Co.Ltd(600438) , Longi Green Energy Technology Co.Ltd(601012) , Ja Solar Technology Co.Ltd(002459) , Tianjin Zhonghuan Semiconductor Co.Ltd(002129) ( Tianjin Zhonghuan Semiconductor Co.Ltd(002129) . SZ) plan to raise a total of 72 billion yuan from the market to expand production capacity.
who will be the new winner of photovoltaic integration? From the financial ability to the company’s operation and sales, and then to the financing ability, all test the ability of photovoltaic module companies
