This week's view
Yunnan power sector was worried about the cancellation of more preferential power price segments this week, which will be greatly affected by the 2.45 market of Yunnan new energy sector. We believe that 2022 is a year of great demand for the photovoltaic sector, with strong certainty. The decline of the photovoltaic sector is mainly affected by short-term sentiment, short-term decline or allocation opportunities.
At present, including the US Anti circumvention investigation on photovoltaic in Southeast Asia and the increase of electricity price, which have impacted the sentiment of the photovoltaic sector and adversely affected the market trend. However, from the perspective of fundamentals, the high prospect of photovoltaic production in the first quarter can confirm that the overall demand of the photovoltaic sector continues to rise, the expectation of large increase in demand throughout the year continues to strengthen, and the short-term emotional impact does not change the upward pattern of fundamentals.
According to the published quarterly forecast, the downstream component enterprises are affected by the rising price of silicon material and the poor price transmission before and after the Spring Festival. Under the condition of the significant increase of installed capacity, their profitability is impacted to a certain extent. With the gradual smooth transmission of upstream prices, the profitability of integrated components will gradually recover in the second quarter.
We believe that the certainty of the photovoltaic sector is high, the short-term low point of the profit side has been found, and the short-term decline or a good opportunity to configure the photovoltaic sector throughout the year. We recommend the integrated module enterprises with large adjustment range, relatively low valuation and gradual repair of the profit side, focusing on Ja Solar Technology Co.Ltd(002459) , Longi Green Energy Technology Co.Ltd(601012) , Sungrow Power Supply Co.Ltd(300274) , etc.
Some company dynamics
Ningbo Ronbay New Energy Technology Co.Ltd(688005) ( Ningbo Ronbay New Energy Technology Co.Ltd(688005) ) announced on the evening of April 7 that the company expects to realize a net profit attributable to the owners of the parent company of RMB 280 million to RMB 300 million in the first quarter of 2022, with a year-on-year increase of 134% to 151%. (company announcement)
Trina Solar Co.Ltd(688599) ( Trina Solar Co.Ltd(688599) ) announced on the evening of April 6 that the company expects the net profit of the first quarter to be 500 million yuan to 600 million yuan, an increase of 117.19% to 160.63% year-on-year compared with the same period of the previous year. (company announcement)
Risk tips
The risk of intensified market competition, repeated epidemic and subsidy policy.
