Recently, most listed companies have announced their operations in fiscal year 2017 before April 30. Among these companies, some companies have had a brilliant record, while others have suffered dismal operations.
In addition to TRW, it is difficult for companies that have delisted from US stocks to obtain specific operating results. Yan Huiguang withdrew from the photovoltaic manufacturing industry. Hairun, Yingli, Zhengxin Optoelectronics, etc. have not yet published annual report data due to operating conditions. All other company data are It has been publicly available and can be found on the Internet. Looking at the profitability of several battery component manufacturers in the photovoltaic industry in 2017, there are many highlights worthy of consideration and consideration.
Jingke relocates Wang Longji to become the king of the year
From the perspective of revenue alone, Jinko, Artes, and Longji are the most voluminous companies in the photovoltaic industry. JinkoSolar’s total module shipments in 2017 were 9.8 GW, ranking first in global shipments. The shipments of components helped boost the revenue of Jinke. Altes shipped 6.8 GW of components throughout the year. In 2017, its photovoltaic module production capacity was 8.11 GW. It plans to expand production to 9.81 GW by the end of this year. Longji 2017 In 2003, the company shipped 2.197 billion wafers of monocrystalline silicon and 4,702MW of single-crystal battery modules. China ranked first in shipment of domestic components.
From the revenue growth rate alone, it can be seen that Eastern Sunrise is a dark horse in 2017, Longji, Tongwei, Hengdian East, GCL Integration, Jinko Energy, Artes, Runda Photovoltaics are all relatively evenly matched. The speed of growth has increased; Hanwha in the first tier has performed poorly, negative growth has occurred in 2017, and the poor operation of Epson has shown signs of backwardness.
From the ranking of net profit, it can be seen that Longji, Oriental Sunrise keeps strong profitability in 2017. Jinko, Hanwha's net profit shrinks compared with 2016, and GCL's integration turns losses into profits.
Runda Solar, Topsun Solar announced only module sales revenue, and did not disclose specific shipments. GCL Group, Sunflower only released its 2017 performance report, and module shipments were not yet known. According to various corporate earnings data, Jinke Nearly 10GW of energy component shipments are the leading global components; Artus, Hanwha Q-CELLS, and Longji have all seen an increase in shipments in 2016; shipments of Trina's optical components are available at 9.2. GW, continue to maintain second place in global shipments.
The gross margin of components is an important benchmark reflecting the profitability of a company. According to industry sources, 12% of gross profit margin is the edge of whether a component company is profitable. As a result, Longji gross margin is the highest, and the average gross profit rate of component business is 30.7%. According to Southwest Securities' analysis, the average gross profit per kilo at Longji is 0.8 yuan. Even after deducting the gross profit of wafers, the gross profit per kilowatt is still as high as about 0.5 yuan. Jingye Optronics, JinkoSolar, and Hanwha Q-cells are only kept low. Profit point, relying on large orders to maintain profit growth. This is also a tactical choice. In terms of Jinko, Jinko adopts a low-cost strategy to maintain profitability by increasing market share.
What are the revenue declines such as Jinko, Hanwha, and Yijing Optoelectronics?
Looking back at the operating conditions of these companies, JinkoSolar’s revenue increased while its net profit reversed its downward trend. According to the Jinke 2017 financial report, it was mainly due to the difficulty of keeping orders for foundry factories in line with increased market demand and the increase in silicon material prices; In 2018, gross profit margin and profit growth, general manager Chen Kangping is very confident.
Hanwha module shipments were 5.4 GW, up 18.7% from 2016; Chief Financial Officer Xu Tingjun said in the earnings report that the main reason for the decline in earnings was the loss of silicon wafer production and bad debt expenses. If these effects are eliminated, the company’s profitability Will improve many.
In 2004, Yijing Photoelectric was deeply troubled by 'selling shells'. Negative news also had potential impact on its operating conditions. Components shipped 1.53 GW, which was the same as 2016; Financial report showed that group price sales accounted for 95% of total revenue, and performance declined. The main reason is that the price of polysilicon in the front end of the photovoltaic industry chain has remained high for a long time. The contradictory price of monocrystalline silicon wafers has risen due to supply and demand, and the price of back-end components has fallen by a large margin. As a result, profit margins of companies mainly engaged in component manufacturing and sales have been greatly squeezed. Pressure.
GCL's integrated net profit growth rate was more than four times, but its net profit was slightly more difficult than its revenue. The main reason was that the company suffered serious losses in 2016. As the average selling price of PV modules stabilized, the synergies in manufacturing costs were cut. As well as the improvement of battery conversion efficiency, the company regained profits.
Domestic and international market environment have a significant impact on business revenue
In 2017, according to data from the China Photovoltaic Industry Association, the global photovoltaic market experienced strong growth. The newly installed capacity reached 102GW, an increase of over 37% year-on-year, including 6.8GW in Japan, US 12.5GW, 8.8GW in Europe, 9GW in India, and the National Energy Administration. The data show that: China's PV industry witnessed an explosive growth in 2017, with more than 53GW of new PV installations, an increase of 53.4% year-on-year, of which distributed new installed capacity exceeded 19GW, a 3.7-fold increase over the same period last year.
The outbreak of the domestic market is both an opportunity and a challenge for the battery module manufacturers. Benefiting from the outbreak of domestic component demand, Longji combines its single-crystal PERC battery efficiency improvement and group price innovation capabilities to generate a profitable harvest. The cost reduction of components, the most cost-effective black silicon polycrystalline silicon half-module assembly, the highest revenue growth in 2017. In a bang, East Risheng signed a 10 billion battery module base construction agreement. After the project is put into production, its component production capacity will reach 13.1GW. Increased by 3 times.
The turmoil in the international trade environment has caused great impact on foreign companies in major markets. It has put a severe test on the companies in the United States, such as Jinko, Hanwha, etc.: More than 50% of Jingko’s markets are in the United States. 201 Surveys cause US market The negative impact of the impact on the export volume of components has made Jinko’s financial report less dazzling than other domestic companies. The international relations between China and South Korea have also caused Hanwha’s domestic sales of components to be severely affected. The balance of foreign markets is balanced, and the major forces are in emerging markets. The turmoil in the international market has relatively weaker influence on them.
The last sentence of the enthusiasm sums up the full text. The photovoltaic market is fiercely competitive. As long as there is a strong desire for survival and self-motivation, each company will certainly be able to blaze a trail on the PV circuit.
