Has the two-month silicon price war stalled?
Following Longi Green Energy Technology Co.Ltd(601012) , on January 26, another 100 billion market value photovoltaic giant Tianjin Zhonghuan Semiconductor Co.Ltd(002129) also announced a comprehensive increase in silicon wafer prices.
Stimulated by the news of price adjustment, Tianjin Zhonghuan Semiconductor Co.Ltd(002129) shares rose sharply at the end of the day, closing up 4.15%, with the latest market value of 140.1 billion yuan.
comprehensively raise the price of silicon wafer
On January 26, the silicon chip leader Tianjin Zhonghuan Semiconductor Co.Ltd(002129) announced the latest silicon chip price, which was comprehensively increased compared with the price announced last time. With thickness of 160 μ M products, for example, the price of silicon wafers of different specifications increased by 0.4 yuan / piece to -0.92 yuan / piece, with a maximum increase of 12.3%. The latest price will be implemented from January 27.
China Securities News · China Securities Taurus reporter noted that in December 2021, Tianjin Zhonghuan Semiconductor Co.Ltd(002129) lowered the price of silicon wafer products twice in a row. This is the company's first price increase this year.
Before Tianjin Zhonghuan Semiconductor Co.Ltd(002129) , another silicon wafer giant Longi Green Energy Technology Co.Ltd(601012) had taken the lead in raising prices. On January 16, Longi Green Energy Technology Co.Ltd(601012) announced an increase in the price of monocrystalline silicon wafer, with a thickness of 160 μ The price of monocrystalline silicon wafers of different specifications of m increased by 0.12 yuan / piece - 0.3 yuan / piece, or 2.4% - 5.1%. This is the first time since Longi Green Energy Technology Co.Ltd(601012) this year to comprehensively raise the price of silicon wafers.
It is worth noting that two months ago, there was still a "price war" between the two giants. Longi Green Energy Technology Co.Ltd(601012) took the lead in reducing the price of silicon wafer, and then Tianjin Zhonghuan Semiconductor Co.Ltd(002129) followed up quickly, and the price war of silicon wafer broke out in an all-round way
Image Source: Tianjin Zhonghuan Semiconductor Co.Ltd(002129)
the industry maintains a high outlook
Why did the two giants both announce price increases?
Industry insiders said that the fundamentals of the industry have been positive recently. At the end of 2021, the installed capacity of the photovoltaic industry increased explosively. At the same time, several provinces released the latest photovoltaic power generation project plans, the construction of photovoltaic power generation continued to advance, and the installed capacity of users maintained a high view.
According to the statistics of the national energy administration, in 2021, China's newly added grid connected installed capacity of photovoltaic power generation was about 53gw, and the installed proportion of distributed photovoltaic power generation exceeded 50% for the first time. It is worth noting that in December 2021, the newly added photovoltaic installed capacity increased by 229.17% month on month, showing an explosive growth momentum. Everbright Securities Company Limited(601788) according to the latest research report, under the background that national policies continue to support the development of new energy, distributed photovoltaic is expected to maintain a high-speed growth trend in 2022.
Recently, the national development and Reform Commission and the national energy administration have expressed their support for the development of photovoltaic, wind power and other renewable energy. Guizhou, Shaanxi and other provinces have successively released the latest photovoltaic power generation planning. On January 18, Guizhou Provincial Energy Bureau released 24 wind power photovoltaic power generation projects approved for filing in December 2021, with a total installed capacity of 2.13gw On January 24, Shaanxi Province also proposed to actively cultivate photovoltaic and other new energy industries in 2022.
share price stabilized and rebounded
According to the data of China Securities Taurus, since September last year, Tianjin Zhonghuan Semiconductor Co.Ltd(002129) share price has continued to decline, falling to 37.48 yuan at the beginning of this year, nearly 30% lower than the highest price last year. But recently, the stock price has stabilized and rebounded, up about 16% from the previous low.
On January 13, Tianjin Zhonghuan Semiconductor Co.Ltd(002129) announced that it had repurchased about 9.52 million shares of the company through centralized bidding from January 12 to 13, accounting for 0.29% of the current total share capital of the company, with a total transaction amount of about 391 million yuan. The repurchase has been completed according to the repurchase plan disclosed on January 11.
After the price of silicon wafer stabilized recently, will it continue to rise next? In this regard, Everbright Securities Company Limited(601788) research report said that the price of photovoltaic industry chain is still in the game stage in the short term, but the price reduction certainty is strong in the medium and long term.
Central China Securities Co.Ltd(601375) it is predicted that the price increase of silicon material and silicon wafer reflects the pulling effect of the early price reduction on the demand of the industrial chain to a certain extent. Considering the increase of new supply of silicon head enterprises and the expansion of production in all links of the industrial chain in 2022, the price is expected to still have room for decline.
