More than 70% of photovoltaic companies return to profit

After experiencing the trough period in 2012, under the influence of multiple factors such as supply and demand recovery, policy intensive support and technological advancement, the domestic PV market continues to climb. According to the data, as of April 28, of the 33 A-share listed PV companies, 32 have published annual reports, of which 75% (24) of the companies have achieved profits, and 8 companies have doubled their net profits year-on-year. However, from the annual and quarterly data, there are still many companies in the industry chain that are struggling with the quagmire of losses. The manufacturing sector is still relatively sluggish. The Shanghai Daily reporter obtained information from the industry. After the outbreak of the distributed market, the enterprises entered a new ranking, and the photovoltaic industry may usher in a new round of mergers and acquisitions.

The whole industry chain is warmer

According to the data of NPD Solarbuzz, a global photovoltaic market research institute, the domestic market installed capacity in China reached 11.5 GW in 2013, an increase of 140% over the previous year, compared to 6 GW cumulatively for many years.

The substantial increase in installed capacity of power plants brought about a rapid recovery in the performance of A-share photovoltaic power plant companies. In the middle of last year, the leading photovoltaic power station of domestic PV power plant took the lead in making profit by virtue of the “investment-construction-transfer-operating” business model; Zhongli Technology also achieved profitability in the fourth quarter of last year; Ai Kang Technology’s first-quarter net profit growth for the first quarter of this year. In 2014, these companies will continue to make big acquisitions and build ground power stations. They plan to reach 500MW, 600MW and 1GW respectively this year.

Solar Qizz Senior Analyst Han Qiming told the Shanghai Daily that in the second half of 2013, the global PV market demand began to increase substantially, bringing two results: First, the prices of photovoltaic modules stopped falling; Second, many companies in the industry chain began to turn losses into profits. Especially in the two components and power plant development.

In the manufacturing sector, Yingli, the largest manufacturer of photovoltaic modules in the world and the US-listed company, announced last week that after three consecutive losses, it is expected that it will realize its first profit in the second quarter of this year. In fact, most of the A-shares component companies have turned losses in 2013. Sunflower, Oriental Sunrise, and Yijing Optoelectronics achieved net profit of 40.61 million, 756.527 million and 68.878 million yuan in 2013, respectively, and their gross profit margin also rose by about 5% in the same period of last year. To about 15%. Entering the first quarter, the performance of related companies was picking up. Among them, the first-quarter earnings of the Longjing shares of the Monocrystalline silicon leading group had reached 73.8% of last year's results, and the profit of the inverter's leading solar power rose 6.9 times in the first three months.

Moreover, this warming is transmitted from the downstream to the upstream. For example, Jinggong Technology, which mainly produces ingot furnaces and photovoltaic equipment, was still in loss in 2013. In the first quarter of this year, it ushered in a good start. The other foundry company, Jingsheng Machinery & Electric, saw year-on-year declines in its first and first quarter results, but it is expected that Increased by 20% to 40%.

For the reasons for turning losses, a number of companies stated that the elimination of the surplus production capacity in the photovoltaic industry in 2013 has achieved initial success. The industry recovery has driven up the demand for manufacturing, the increase in polysilicon conversion efficiency has led to a decrease in costs, and the installed capacity of domestic photovoltaic power generation has been driven by favorable policies. With substantial expansion, orders in the domestic market have risen sharply. It is worth noting that the above-mentioned manufacturing industries, especially component manufacturers such as Sunflower and Oriental Sunrise, are all extending to the downstream power stations, and their revenues have contributed a lot to their revenue in last year's performance.

Industry adjustment is not exhaustive

Looking ahead to 2014, the industry is picking up to speed up. Most people in the industry believe that the National Energy Administration has set a target of 14GW of installed capacity for photovoltaics this year at the beginning of the year, a year-on-year increase of nearly 50%, which will provide strong support for the development of the industry. Han Qiming optimistically estimates that "according to our estimation, the gross margin of the component manufacturing enterprises in 2014 is expected to reach 20% to 30%, and the gross margin of enterprises involved in downstream power station development is expected to reach 50% to 60%."

Although the photovoltaic industry is hard-pressed and ready to go, there are still many companies that continue to lose money. For example, Hairun PV originally lost 311 million yuan in 2013, but on April 25 this year, it further reduced the net profit attributable to shareholders of listed companies to a loss of 203 million yuan; another example is Tianwei change, due to excessive expansion and litigation. The problem was a huge loss of 5.2 billion yuan last year. Currently, new energy assets are being stripped.

In an interview with the reporter Dong Xuemi Xue Shanxing, Oriental Sunrise, said: “The industry is picking up bright future and the road is tortuous. For several reasons, market competition is relatively disordered, and the possibility of completing industry integration is relatively large, and eventually it is relatively clear. The strength of the leading enterprises is not the same as the original scattered sand.” Insider of a domestic power station company with component production capacity told reporters that the current acquisition and merger is a good time, there are some polysilicon companies because the capital chain can not keep up, difficult to sustain, With its advanced equipment, many companies, including the company, are competing for bargain-hunting and have become an open secret in the industry.

In terms of policies, the industry expects that the National Energy Administration will introduce a fine-tuning policy for distributed photovoltaics this year. It is currently in the run-in period. Many photovoltaic companies told reporters that if the policies introduced can lock in the benefits of distributed power plants, there are better business models, distributed photovoltaic power plants will usher in explosive growth, and its market space is infinitely broad, including Ai Kang Technology, Lin. Many listed companies, including Yang Electronics and Oriental Sunrise, have already laid out their plans.