Xinjiang Daqo New Energy Co.Ltd(688303) launched a leap forward production expansion plan, followed by a 10 billion fixed growth.
On January 24, Xinjiang Daqo New Energy Co.Ltd(688303) issued a huge fixed increase plan, which proposed to raise no more than 11 billion yuan for the project of 100000 tons of high-purity silicon-based materials per year and supplement working capital. The issuing price shall not be lower than 80% of the average trading price of the company's shares 20 trading days before the pricing benchmark date.
Behind the wanton expansion of production is the boom of the industry. According to the disclosure, due to the soaring price of polysilicon in 2021, Xinjiang Daqo New Energy Co.Ltd(688303) is expected to realize a net profit of 5.6 billion yuan to 5.8 billion yuan in 2021, with a year-on-year increase of 436.69% - 455.86%. The peer poly new energy is expected to have a net profit of about 5 billion yuan in 2021. (original link: "Hillhouse has just taken shares, and this granular silicon leader earns 5 billion yuan a year")
how to spend 10 billion fund-raising?
From the perspective of raised investment projects, the high-purity silicon-based material project with an annual output of 100000 tons is undoubtedly the "highlight" of this fixed increase.
It is disclosed that the project will be constructed and implemented in Baotou, Inner Mongolia by Daquan, a wholly-owned subsidiary of Xinjiang Daqo New Energy Co.Ltd(688303) , in order to better serve downstream customers with a large amount of production capacity in Inner Mongolia and its surrounding areas, such as Longi Green Energy Technology Co.Ltd(601012) , Ja Solar Technology Co.Ltd(002459) , Wuxi Shangji Automation Co.Ltd(603185) , Meike and Shuangliang shares.
After the completion of the project, the company will operate 105000 tons and 100000 tons of polysilicon capacity in Shihezi, Xinjiang and Baotou, Inner Mongolia, respectively. The operation and production capacity of the two places are decentralized, so as to reduce operational risks and facilitate close service to major customers.
Almost doubled the expansion of production, Xinjiang Daqo New Energy Co.Ltd(688303) where is the confidence?
The "double carbon" goal is the background. The company said that this raised investment project is to actively respond to the national "double carbon" goal and the call of relevant industrial policies to produce high-quality polysilicon to meet the needs of the rapid growth of photovoltaic industry and the transformation and upgrading of photovoltaic cell technology.
The gap of industry supply is an objective factor.
According to the data of China Photovoltaic Industry Association, the global total output of polysilicon will be 521000 tons in 2020, and the global demand for polysilicon is expected to reach about 1.2 million tons in 2025. With the continuous and wide application of n-type high-efficiency Cecep Solar Energy Co.Ltd(000591) batteries such as TOPCON and heterojunction in the downstream power generation end, the quality requirements of high-purity polysilicon will gradually move from Cecep Solar Energy Co.Ltd(000591) products to electronic products. The strong demand for high-quality polysilicon will bring broad market space.
On the other hand, the "inside roll" of competitors has gradually become a trend. The reporter found that most of China's crystal silicon leaders have different degrees of production expansion plans recently. With the rising price of polysilicon since the second half of 2020, more new entrants have also announced plans to invest in polysilicon production capacity. The strong leap forward of peers forced Xinjiang Daqo New Energy Co.Ltd(688303) to step up its pace.
As the large-scale expansion of production is bound to bring certain capital pressure, nearly 3 billion yuan of the raised funds will be used to supplement working capital, so as to promote the expansion of the company's business scale and ensure the continuous and normal development of R & D innovation and business expansion.
good harvest year
Statistics show that Xinjiang Daqo New Energy Co.Ltd(688303) was founded in 2011 and is one of the earliest enterprises engaged in R & D and manufacturing of high-purity polysilicon in China. It officially landed on the science and innovation board in July 2021.
While accelerating on the capital Road, Xinjiang Daqo New Energy Co.Ltd(688303) is also steady in business performance. Since the second half of 2020, with the recovery of downstream demand for photovoltaic and the substantial expansion of silicon wafer enterprises, the supply-demand relationship of polysilicon has been gradually reversed and the price has risen rapidly. As a result, the company has achieved ultra-high growth.
Pvinfolink data show that the average price of polysilicon compact in January 2021 was only 84 yuan / kg, but by early November, the average price of polysilicon compact had reached 269 yuan / kg. This price is the highest in nearly 10 years, with an increase of 220% in 11 months.
This is reflected in the performance forecast released by Xinjiang Daqo New Energy Co.Ltd(688303) tonight. The company expects to realize a net profit attributable to the parent company of 5.6-5.8 billion yuan in 2021, with a year-on-year increase of 436.69% - 455.86%.
"Flourishing production and marketing" has become the key word of operation in Xinjiang Daqo New Energy Co.Ltd(688303) 2021. The announcement shows that the company achieved 63000 tons of polysilicon output and 63700 tons of sales in the first three quarters. In addition, the 35000 ton polysilicon project of the company has been put into operation on December 6, 2021 and will reach production before the end of the first quarter of this year.
According to the medium-term development goal of Xinjiang Daqo New Energy Co.Ltd(688303) plan, the company will maintain an average annual capacity growth rate of about 50% in the next three years, and plans to achieve a total capacity of 270000 tons / year of high-purity silicon material by the end of 2024.
However, such a good scene is still full of variables. Since the middle of December last year, the price of silicon material has begun to loosen. The price of polysilicon compact decreased from 269 yuan / kg to 258 yuan / kg, a decrease of 4.1%. By the end of December of that year, the average price of polysilicon compact fell to 230 yuan / kg, nearly 15% lower than the high price of the year.
countersunk expansion of silicon faucet
Looking at the recent actions of Xinjiang Daqo New Energy Co.Ltd(688303) , the fixed increase of 10 billion is only an important step to accelerate the expansion of production.
On January 4, Xinjiang Daqo New Energy Co.Ltd(688303) announced that it plans to increase capital by 9.999 billion yuan to Daquan, Inner Mongolia, for the investment, construction and operation of Baotou phase I project "100000 t / a high-purity polysilicon + 1000 t / a semiconductor polysilicon". At the same time, the company adjusted the implementation location, implementation subject and investment amount of IPO raised investment projects.
It is worth mentioning that, taking into account the 33 billion silicon material expansion plan thrown out by the company in December 2021, Xinjiang Daqo New Energy Co.Ltd(688303) the investment amount in more than a month has exceeded 46 billion yuan, which can be described as a brave "bet".
Since 2021, the silicon material link has ushered in a large wave of expansion plans of new and old enterprises, with an annual production capacity of more than 2 million tons and a total investment of more than 100 billion yuan.
According to the statistics of the silicon industry association, China's polysilicon production in 2021 totaled about 490000 tons, with a year-on-year increase of 23.7%. It is expected that the annual polysilicon import volume will be 116000 tons, and the total polysilicon supply in China will be about 606000 tons.
"The photovoltaic supply chain game in 2021 is mainly due to the continuous shortage of silicon materials, and the fundamental problem cannot be solved without expansion of production. However, it is difficult to expect 'just right' expansion of production under the capital cluster, and silicon materials may have overcapacity in 2023." Some analysts told reporters.
In fact, since the fourth quarter of last year, the production expansion projects announced by some leading enterprises have entered the mass production period. For example, poly GCL energy's 20000 ton granular silicon project and Xinjiang Daqo New Energy Co.Ltd(688303) 35000 ton polysilicon project were put into operation in November and December last year respectively.
"Although Tongwei Co.Ltd(600438) , poly GCL energy, Xinjiang Daqo New Energy Co.Ltd(688303) , Tbea Co.Ltd(600089) " A number of silicon material enterprises such as will release silicon material capacity in 2022, but under the background that the new capacity still needs to climb, some capacity will not form effective output in 2022; At the same time, the terminal demand continues to improve under the background of the decline in the price of the industrial chain. The strong demand for silicon material will play a certain supporting role in its price, and the possibility of rapid and sharp price decline is low. " According to the judgment of Everbright Securities Company Limited(601788) , the average price of silicon material this year is expected to remain above 160000 yuan / ton.
