Events
On April 15, 2022, Reliance Industries Limited (“Reliance Industries”) issued letter of commitment to Maxwell technology Pte.Ltd. (Singapore Maiwei), a wholly-owned subsidiary of Maiwei. According to the above LOC agreement, Reliance Industries plans to purchase 8 whole lines of Cecep Solar Energy Co.Ltd(000591) heterojunction battery production equipment from Singapore Maiwei, with a capacity of 600MW / piece, a total of 4.8gw. According to Maiwei’s announcement, The total purchase amount exceeds 50% of the company’s audited operating revenue in 2021, but does not reach 100%.
Comment 1: according to the company’s disclosure, the purchase amount exceeds 50% of the company’s operating revenue in 2021 and does not reach 100%. The whole line price of single GW of heterojunction battery is 400 million yuan. According to the calculation of 4.8gw heterojunction capacity, we expect the order amount to be 1.92 billion yuan, accounting for about 62% of the company’s operating revenue in 21 years, about 7 times of the company’s overseas operating revenue in 21 years!
Comment 2: the company may bind major customers in India, and orders are expected to continue to increase. Reliance Industries, the purchaser of this large order, is a listed company in India, ranking 155th among the world’s top 500. Driven by the empty window period of India’s market tariff policy and the goal of renewable energy, according to the prediction of the European Photovoltaic Industry Association, the new installed capacity in India will reach 18gw in 22 years, and the installed capacity of photovoltaic in India will reach 67gw by the end of 22, but there is still a gap from the target of 100gw. The bid winning reflects the competitiveness of Maiwei heterojunction battery production line. The company will establish a good cooperative relationship with reliance industry. With the increase of photovoltaic installed capacity in India, the company is expected to continue to obtain new orders!
Comment 3: Calculation of heterojunction orders in hand: since 2020, Suzhou Maxwell Technologies Co.Ltd(300751) and its subsidiaries have successively won the bid for Huasheng 500mwhjt project, Tongwei Jintang 1GW middle line, 3 Beijing Centergate Technologies (Holding) Co.Ltd(000931) 2gwhjt mass production line, Aikang 0.6gw heterojunction whole line equipment procurement, 1.8gw subsequent procurement intention, rec400mw orders, etc. By the end of 2021, the company’s hjt orders on hand are expected to be 1.8 billion yuan. With the signing of this large order, we estimate that the company’s current orders for hjt equipment are about 4 billion yuan.
Risk warning: the contract cannot be delivered and accepted on time, resulting in the risk of breach of contract; Risk of uncertainty in contract execution; The product price is affected by the price fluctuation of raw materials; The promotion speed of heterojunction equipment is lower than the market expectation; Market competition intensifies risks; The relevant policies of photovoltaic industry were less than expected.
