\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 481 Shuangliang Eco-Energy Systems Co.Ltd(600481) )
Event overview
On March 11, 2022, the company issued an announcement on foreign investment to establish a subsidiary company. The company plans to invest in the establishment of Shuangliang Xinneng Technology (Baotou) Co., Ltd. to invest in and operate the 20GW high-efficiency photovoltaic module project with an annual output. The registered capital of the subsidiary company is 600 million yuan, which is invested by Jiangsu Shuangliang Eco-Energy Systems Co.Ltd(600481) Investment Co., Ltd., a wholly-owned subsidiary of Shuangliang Eco-Energy Systems Co.Ltd(600481) in cash, with a proportion of 100%. The component project will be implemented by stages and is still in the planning stage. comment
The company will improve its industrial chain layout, avoid direct competition with customers and revitalize the upstream and downstream industrial chain. The company is the leading manufacturer of polysilicon reduction furnace equipment industry, with a market share of 65% and supply of silicon materials. The company started the silicon wafer business in 21 years and cooperated with the customer resources of reduction furnace equipment to obtain a stable supply of silicon. In the future, the company’s component business will also cooperate with silicon wafer customer resources and become mutual suppliers with battery enterprises to form a mutual relationship of “you have me and I have you”. We believe that the company’s solid bilateral cooperation strategy will effectively integrate upstream and downstream resources, form a joint force and ensure the stable development of the enterprise.
Component business builds a new growth pole of performance. With the promotion of the dual carbon target, the photovoltaic market has grown rapidly. According to PV InfoLink data, it is expected that the global new installed capacity will increase to 352gw in 2025. According to the capacity ratio of 1:1.2, the corresponding global component demand will increase to 423gw, an increase of 98.08% compared with 2021. We believe that the company’s component business layout at this time will seize the rapid development opportunity of the photovoltaic industry and create a new growth pole for the company’s performance.
The company has accumulated a deep upstream and downstream relationship in the photovoltaic industry and will cooperate with battery manufacturers, power station investors and other resources to promote the sales of silicon wafers and components through multi-channel layout. The company not only maintains close cooperation with upstream polysilicon material manufacturers (Xinte energy, Xinjiang Daqo New Energy Co.Ltd(688303) etc.), but also maintains long-term good partnership with downstream photovoltaic power station investors (including five major state-owned power companies) due to energy conservation and water saving business, and actively negotiates with photovoltaic power station investment enterprises to carry out supply chain cooperation at power station terminals, Provide customers with overall solutions. In August 2021, the company reached strategic cooperation with Huaneng Group North United Power Company in Baotou on photovoltaic power plants and energy-saving transformation in Inner Mongolia Autonomous Region. In addition, the company signed a tripartite strategic cooperation framework agreement with Xinli energy (a subsidiary of CITIC Pacific) and Jiangsu Akcome Science And Technology Co.Ltd(002610) in June 21, which will give full play to the advantages of the three parties in the investment and operation of large-size silicon wafers, heterojunction cells and modules and photovoltaic power plants, and jointly promote the implementation and supporting of photovoltaic cells and module industry chain projects in Baotou project. We believe that the company will make full use of the resources of customers and partners and promote the sales of silicon wafers and components through multi-channel layout.
Comply with the government’s industrial planning and promote the win-win situation of enterprises and land. By the end of the 20th century, Baotou had put into operation and built 10 photovoltaic material enterprises, and completed the layout of polysilicon material, single crystal pull rod and chip processing capacity. In the 21st year, we began to focus on the introduction of downstream industries such as battery chips, battery modules and photovoltaic supporting facilities, focus on chain extension and chain supplement, and make every effort to build the whole photovoltaic industry chain, so as to drive the construction of Baotou green energy base. The company’s layout of component production capacity is highly consistent with the government’s industrial chain layout planning, which not only helps Baotou’s high-quality development, but also realizes the enterprise’s own growth and promotes the win-win cooperation between enterprises and local governments.
Investment advice
It is estimated that the operating revenue of the company from 2022 to 2024 will be RMB 12.972 billion, 15.916 billion and 19.017 billion respectively, with a year-on-year increase of 238.7%, 22.7% and 19.5% respectively; The net profit attributable to the parent company was 923 million yuan, 1527 million yuan and 2.075 billion yuan respectively, with a year-on-year increase of 197.6%, 65.5% and 35.9% respectively. The current share price corresponds to 23, 18 and 13 times of PE from 2022 to 2024 respectively. Maintain “buy” rating
Risk tips
Silicon wafer capacity expansion is less than expected risk; Policy fluctuation risk of photovoltaic industry; The risk of intensified market competition.
