Dismantling 51 A-Share Photovoltaic Companies' Third Quarter Report: Q3 Net Profit Exceeding 12 Billion Yuan "Hard To Endure"

In the third quarter, the number of new installed capacity of domestic photovoltaic industry decreased slightly month on month.

According to statistics released by the National Energy Administration on October 30, China's newly installed photovoltaic power generation capacity was about 18.70gw in the first three quarters of this year. The 21st century economic reporter, based on the data published before, estimated that the newly installed photovoltaic power generation capacity in China was about 3.95gw, 7.57gw and 7.18gw respectively in the first and third quarters of this year. In the third quarter, the domestic photovoltaic market installed demand weakened.

The third quarter of the domestic photovoltaic industry ushered in a wave of price rise sweeping the entire industry chain. Since July, the price of polycrystalline silicon materials, silicon wafers, solar cells, and then photovoltaic glass, EVA adhesive film and other auxiliary materials, the price of materials has increased, which makes the investment of modules and power stations in the middle and lower reaches of the industrial chain encounter cost pressure, which affects the final landing of some photovoltaic projects. It is worth mentioning that the fourth quarter is the peak season of the industry, and the status quo of photovoltaic glass is difficult to change.

In fact, the performance of photovoltaic enterprises in the third quarter is worth pondering. The 21st century economic report reporter analyzed the Q3 (third quarter) financial reports of 50 A-share photovoltaic companies and found that: on the one hand, the prosperity of the photovoltaic industry continued to recover, and the overall profitability continued to rise; on the other hand, under the background of price rising tide, the prosperity of various links appeared differentiation, and the net profit growth rate of battery chip, inverter and photovoltaic auxiliary materials enterprises was prominent, while the days of module enterprises were "a little difficult" Boil ".

Which link does the enterprise sing the leading role?

According to the statistics of 21st century economic reporter, in the third quarter, 51 photovoltaic companies of a share realized a total of 108.265 billion yuan of operating revenue and 12.739 billion yuan of net profit attributable to the shareholders of the parent company. Compared with the second quarter, there is no doubt that the photovoltaic industry chain has continued to recover. The total revenue of 51 photovoltaic companies increased by 5.56% month on month, while the net profit attributable to the shareholders of the parent company increased by 35.46% month on month.

The above data show that the profitability of the domestic photovoltaic industry has rebounded significantly. However, the number of shareholders belonging to the parent company decreased by more than 18 in the second quarter.

So, what is the cause of this contrast? The 21st century economic reporter analysis found that its core factor points to the phenomenon of price rise of photovoltaic industry chain.

From July to July, the price of polysilicon and cellophane increased. According to the latest industrial chain situation, with the prices of silicon wafers and batteries announced by Longji Co., Ltd. and Tongwei Co., Ltd. remain unchanged in November, the price rise momentum in the middle reaches of the photovoltaic industry chain has stagnated; the price of polysilicon materials has fallen steadily, but still remains high; and photovoltaic glass and other auxiliary materials have become the main force of price increase, and the price of photovoltaic glass in November may rise sharply again.

Under the tide of price rise, enterprises with photovoltaic materials business almost rose both in volume and price in the third quarter, and their net profits generally rose.

First of all, battery enterprises, such as aixu shares and Tongwei shares, have made outstanding achievements. According to the financial data, in the third quarter, the operating income and net profit attributable to the shareholders of the parent company were RMB 2.561 billion and RMB 237 million, respectively, with a year-on-year increase of 90.73% and 265.15% respectively, with a month on month increase of 37.58% and 318.88%; the operating income and net profit attributable to the shareholders of the parent company were 12.940 billion yuan and 2.322 billion yuan, respectively, with an increase of 8.73% year-on-year And 193.07%, with an increase of 18.56% and 248.67% respectively.

Combined with the sales of the two companies' battery business, the proportion of large-scale battery chip sales is increasing. A new energy industry analyst told the 21st century economic report that leading enterprises are committed to the continuous improvement of the production capacity of large-scale batteries and optimize the cost structure, which has become an irreversible trend.

Second, inverter enterprises, such as sunshine power, jinlang technology, Shangneng electric and other leading enterprises, had a big increase in net profits. According to the financial data, as an enterprise with significant market share advantage of inverter, sunshine power achieved operating income and net profit attributable to the shareholders of the parent company in the third quarter of this year to RMB 4.967 billion and RMB 749 million respectively, up 82.50% and 237.79% respectively year-on-year. Shangneng electric, another inverter company, increased its net profit attributable to the shareholders of the parent company by more than 118% in the third quarter. In the second quarter, despite the rapid recovery of inverters in the overseas market, the two companies were impacted by the same volume of inverters in the overseas market in the second quarter.

Moreover, photovoltaic auxiliary materials enterprises, represented by photovoltaic glass and adhesive film, continued to grow in the third quarter. According to the financial data, the operating income and net profit attributable to the shareholders of the parent company increased year on year and month on month in the third quarter.

Foster, the leading enterprise of EVA adhesive film, also delivered a good report card in the third quarter. The operating income and net profit attributable to the shareholders of the parent company were 2.093 billion yuan and 415 million yuan respectively, with a year-on-year increase of 29.84% and 113.60%. The 21st century economic reporter found that in the third quarter, the sales volume of foster adhesive film and back board continued to grow, and the gross profit margin in the third quarter reached 29.71%, a new high in recent years.

Where is the enterprise component going?

In the third quarter, they were trapped in photovoltaic materials such as polycrystalline silicon, silicon wafers and batteries, while in the fourth quarter, they were beset with photovoltaic auxiliary materials such as photovoltaic glass and adhesive film. In recent years, module enterprises have never suffered as much as this year.

Compared with the second quarter, Trina Solar achieved operating revenue of 7.381 billion yuan in the third quarter, with a 4.8% increase on a month on month basis, while its net profit attributable to shareholders of the parent company was 339 million yuan, a decrease of 0.40% month on month. In the third quarter, GCL integrated, another domestic component manufacturer, realized an operating income of 1.351 billion yuan, a 24.61% month on month decrease; the net profit attributable to the shareholders of the parent company was 65 million yuan, with a slight increase in the range of loss compared with the previous quarter. Longji's performance in the third quarter was also affected by the component business, and the net profit attributable to shareholders of the parent company decreased month on month. In the third quarter, however, Minsheng securities company is expected to improve its short-term earnings share.

"The price rise of materials is still the biggest difficulty for component enterprises at present." The above-mentioned new energy industry analysts told the 21st century economic report that although module enterprises can transmit downward pressure from the cost side through price increases, their premium is limited. At the same time, the recent sharp rise in photovoltaic glass will further squeeze the profits of module manufacturers.

The 21st century economic reporter learned that, in fact, as the photovoltaic industry entered the fourth quarter, the rush to land bidding projects and the recovery of overseas market demand led to the peak demand of modules. However, due to the lack of auxiliary materials such as photovoltaic glass and EVA film, many module manufacturers encounter delivery problems.

At present, China's photovoltaic module exports account for nearly 70% of the total output. However, compared with the silicon material, silicon chip and battery chip, the concentration degree of the component link is relatively scattered, and the market share competition of leading enterprises is fierce. However, this pattern makes it easier for components to be subject to the price pressure of upstream silicon materials and wafers. Simple component manufacturers are more likely to become oppressors of price increases. In order to solve this dilemma, many component enterprises build their own vertical integration. Qian Jing, vice president of Jingke energy, said in an interview with the reporter of 21st century economic report that the price rise of the industrial chain makes component enterprises need to consider future strategies as appropriate, from pursuing market share to moderately improving their own vertical integration.

21st century economic reporter noted that the third quarter performance of component manufacturer Jingao technology may prove the importance of vertical integration trend to component manufacturers. Financial data show that the company's operating income and net profit attributable to shareholders of the parent company were 5.811 billion yuan and 590 million yuan, respectively, up 24.99% and 95.12% over the same period last year.

However, vertical integration is not a one-day feat. At this stage, many component manufacturers should first consider the stable supply of component materials. On the evening of November 2, Trina Solar issued a major procurement announcement: the company signed a long single crystal silicon wafer procurement contract with Wuxi Shangji CNC Co., Ltd. and its wholly-owned subsidiary Hongyuan new materials (Baotou) Co., Ltd., which plans to purchase no less than 20GW of single-crystal silicon wafers (210 sizes) from 2021 to 2025, with a total amount of more than 10 billion yuan.

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