Market Review
In this period (from April 11 to April 15), the CSI 300 fell by 1.0% and the machinery sector fell by 4.8%, ranking 20 among 28 Shenwan industries. In terms of industry segments, elevators had the smallest decline, down 1.4%; Lithium battery equipment fell the most, down 11.5%.
This week’s view
New technology leads the expansion of cell production and benefits photovoltaic equipment manufacturers.
Photovoltaic cell technology iteration promotes cost reduction and efficiency increase. Recently, leading enterprises have expanded their production on their promising technical routes. 1) Longi Green Energy Technology Co.Ltd(601012) 2021 issued the convertible bond raising letter on December 31. It is planned to raise 7 billion yuan to invest in the annual output of 15gw high-efficiency single crystal battery project, the annual output of 3gw single crystal battery manufacturing project and supplement working capital. The project fully introduces the mature technology of the next generation n-type high-efficiency single crystal battery independently developed by the company, and the average conversion efficiency of mass production will exceed 24%. 2) Tongwei Co.Ltd(600438) 2022 announced on April 1 that it plans to invest in the construction of 32gw high-efficiency crystalline silicon battery project in Meishan, with a total investment of 12 billion yuan. The investment of phase I 16GW battery project is about 6 billion yuan, and strive to be put into operation before the end of December 2023. Phase II 16GW battery project will be started at an appropriate time according to the agreement. 3) Ja Solar Technology Co.Ltd(002459) announced on March 8, 2022 that it plans to invest in the development and construction of “green photovoltaic new energy base” in Qujing City in the next six years, 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 modules with a scale of no less than 10GW and the new energy power station project. In addition, on February 11, the company announced that it plans to invest 3.46 billion yuan in Vietnam’s 2.5gw crystal drawing and slicing project, Ningjin 1.3gw high-efficiency battery project, Yiwu 10GW module auxiliary materials supporting project and Tuquan 200mV photovoltaic energy storage and power generation project. 4) Trina Solar Co.Ltd(688599) 2022: the launching meeting of Suqian 8gwtopcon battery project was held on April 8, and TOPCON is expected to be put into operation in the second half of the year. 5) Risen Energy Co.Ltd(300118) on March 3, 2022, the invitation for geological survey of 15gwn ultra-low carbon high efficiency heterojunction battery and 15gw high efficiency Cecep Solar Energy Co.Ltd(000591) module project (735 mu in phase I) was issued. The phase I project was started, and it is expected that equipment bidding and production line construction will also be put on the agenda.
Investment suggestions:
In the tide of expanding the production of various leading enterprises, it will stimulate the demand for equipment, and focus on recommending the manufacturers of photovoltaic cell equipment Suzhou Maxwell Technologies Co.Ltd(300751) , Shenzhen S.C New Energy Technology Corporation(300724) , Yingkou Jinchen Machinery Co.Ltd(603396) , Wuhan Dr Laser Technology Corp.Ltd(300776) and Wuxi Autowell Technology Co.Ltd(688516) !
Risk tips
Macroeconomic fluctuations, external demand fluctuations.
