In the first quarter of 2020, solar photovoltaic companies issued performance forecasts, and more than half of the companies were affected by the epidemic, resulting in a decline in net profit.
However, the epidemic did not affect Longji, the world’s largest manufacturer of monocrystalline solar products.
On the evening of April 16, Longji announced that it expects to realize net profit attributable to shareholders of listed companies in the first quarter of this year of 1.65 billion to 1.950 billion yuan, an increase of 175.05% to 219.15% year-on-year. After deducting non-recurring gains and losses, the company’s net profit also reached 1.549 billion yuan to 1.849 billion yuan.
Public information shows that in the same period last year, Longji shares realized a net profit attributable to shareholders of listed companies of 611 million yuan. As a result, in the first quarter of 2020, Longji’s main business performance was very strong.
“The King of Expansion” Expanding Production Capacity
According to the announcement, Longji shares attributed the rapid growth of performance to the expansion of production capacity.
Throughout the entire solar photovoltaic industry, Longji shares are well-deserved “kings of expansion,” and public data compilation shows that the investment amount of Longji shares reached as high as 30 billion yuan in 2019 alone.
Longji said that under the influence of the expansion of production capacity, the company’s main products monocrystalline solar wafers and solar modules sales increased rapidly year-on-year, the proportion of large-size silicon wafers and high-power solar module products increased rapidly, and the operating income increased significantly year-on-year Costs continued to decrease, and product gross profit margins increased year-on-year.
Looking back on 2019, in the case of sluggish domestic PV market demand, many domestic PV companies, including Longji, have chosen to “go overseas.” Taking the company’s solar module shipments in the first half of 2019 as an example, its overseas shipments accounted for 70%.
Longji said that in the first quarter of this year, in the face of the spread of the epidemic and the complex external operating environment, it flexibly adjusted its production and operation plans. For overseas orders, the company strengthened timely communication with domestic and foreign customers, and strived to ensure timely and high-quality delivery of orders in hand.
In addition, the crazy expansion of Longji’s shares on the silicon side in 2019 seems to be preparing for the future price war of monocrystalline solar wafers.
On March 25, 2020, LONGi released the price announcement of monocrystalline solar wafers. The price of monocrystalline solar wafers P-type M6 180μm thickness (166 / 223mm) is 3.41 yuan / sheet, which is the price announced on February 24 Compared with it, it is reduced by 0.06 yuan / piece; the price of single crystal solar silicon P-type M2 180 μm thickness is 3.07 yuan / piece. Compared with the price released on February 24, it remains unchanged.
In this announcement, Longji announced the same price for P-type boron-doped and gallium-doped silicon wafers. Industry insiders believe that its official announcement of the same price for both may be laying the foundation for the elimination of backward monocrystalline solar capacity.
The long-term trend of solar photovoltaics has not changed
At present, under the spread of overseas epidemics, short-term demand in overseas markets has been impacted, and whether the overseas sales of Longji shares have been affected has attracted considerable attention from investors.
On April 15th, Longji’s board secretary responded that the epidemic was a short-term impact on the solar photovoltaic industry, and the mid-to-long term trend of the solar photovoltaic industry has not changed. The company’s order fulfillment has been normal in the past week, and it will carefully evaluate the market situation to fully prevent market risks.
It is worth mentioning that in 2020, Longji shares non-stop, and has successively announced a number of expansion projects to further enhance the overall production capacity.
According to public information, Longji’s planned production capacity has exceeded 133GW, and on its traditional strength silicon side, it will achieve 80GW of production capacity in 2020.
It is worth noting that the development trend of large-size silicon wafers has also become a hot topic this year. M6 (166mm) size silicon wafers represented by Longji shares and M12 (210mm) size silicon wafers represented by Zhonghuan shares Direct collision.
According to Longji shares, the company ’s M6 (166mm) silicon wafer orders have been filled in the second quarter since full production resumed in March. Looking forward to the whole year, its calculated M6 silicon wafer will account for more than 70% of the total shipments.
It can be said that from the comparison of production capacity, Longji currently has no rivals on the silicon side.
Finally, back to the performance forecast, affected by the large pre-increased performance of Longji shares, Longji shares opened higher and higher today, and once touched the daily price limit, the total market value exceeded 100 billion yuan.
Relevant agencies expect that the second quarter of this year will be a period of downturn overseas. The adjustment of the industrial chain price will accelerate, driving the demand after the epidemic. The leading share will further increase. The current adjustment is relatively large. The long-term value of the solar photovoltaic leading including Longji shares appears.
Posted by Carrie Wong | WSL Solar
WSL Solar has been a quality and professional manufacturer of custom solar panel and solar solution provider in China since 2006.