Upstream polysilicon "only cold"

Abstract Among the 36 A-share PV companies with Wind data statistics, many companies in the downstream of the industrial chain, such as power station development and battery components, have turned losses into profits, which verified the industry's previous consensus on the downstream recovery of the photovoltaic industry. But the upstream polysilicon company is still in...
Among the 36 A-share PV companies in Wind data statistics, many companies in the downstream of the industrial chain, such as power station development and battery components, have turned losses into profits, which verified the industry's previous consensus on the downstream recovery of the photovoltaic industry. However, the upstream polysilicon link company is still in a "cold" state. The loss of polysilicon business of five polysilicon concept stocks further expanded.

The industry generally expects that 80% of the 44 polysilicon enterprises in China will be hopeless for resumption of production at the end of the year, and the equipment will be seriously depleted, which will be eliminated and the industry concentration will be further improved.

The loss side is further expanded

Affected by domestic policy support and the recovery of emerging market demand, the middle and downstream sectors of domestic PV have gradually “recovered” since the first half of the year. According to Wind's statistics, among the 17 battery component manufacturers in the A-share PV segment, the growth rate of the first half of the seven companies in the first half of the year turned from negative to positive, among which five companies, such as Longji and Aerospace, realized a turnaround.

However, in stark contrast to the “recovery” in the middle and lower reaches, the polysilicon industry, which is at the most upstream of PV, is still “exclusively cold” in the first half of the year. Among the five major polysilicon concept stocks in Wind's statistics, the performance was almost invariably reported, and most of the losses were further expanded.

Tianwei Baobian achieved a net profit loss of 1.098 billion yuan attributable to shareholders in the first half of the year. Compared with the loss of 344 million yuan in the same period of last year, the loss was further expanded. Tianwei Baobian is currently ranked third among domestic polysilicon producers and is one of the industry leaders.

For the other two polysilicon giants, Leshan Power's total profit for the first half of the year was 14.5471 million yuan, and the loss increased by 242.10% year-on-year. The company said that the main reason was the technical shutdown of the holding polysilicon subsidiary Leshan Ledian Tianwei Silicon Polysilicon production line; According to energy, Xinguang Silicon, which shares 38.90% of the company's shares, is still in a cold winter, causing the company to lose money and reduce the quality of its assets. The loss in the first half of the year was 170 million yuan, and the year-on-year loss further increased.

Eighty percent of enterprises will be out

The operation of the photovoltaic industry in the first half of 2013 released by the Ministry of Industry and Information Technology recently pointed out that in the first half of the year, the price of photovoltaic modules increased and the cost decreased. The operating conditions of the enterprises have been greatly improved. The gross profit margin of some enterprises has turned positive. The gross profit of individual key enterprises has reached about 10%. Companies that turn losses into profit by the end of 2013 will expand further.

However, for the polysilicon segment, the analysis pointed out that due to the gradual growth of domestic and Asia-Pacific emerging market demand, the current photovoltaic industry's prosperity has bottomed out. However, due to the lag of the industrial chain conduction effect, this warm current has not been transmitted to the most upstream polysilicon link. In addition, the domestic polysilicon industry is subject to severe overcapacity and the double pinch of US and South Korean imports of polysilicon dumping, and the operating rate of enterprises is less than 10%. The combination of the two factors has led to the continued sluggish performance of polysilicon companies in the first half of the year.

The above report pointed out that in the first half of the year, there were only 8 polysilicon enterprises in China, and nearly 80% of polysilicon enterprises stopped production. Those enterprises that have been out of production for a long time and are not competitive will be gradually eliminated by the market.

In this regard, the relevant analysts of the China Nonferrous Metals Industry Association Silicon Industry Branch said that the polysilicon enterprises that have been discontinued for a long time, the production system is prone to rust, the technical and financial difficulties of restoring production are greatly increased, and the production system is even at risk of being scrapped. This factor will directly lead some SMEs to survive and have to withdraw from the industry.

According to the report, with the collapse of small and medium-sized polysilicon enterprises in the second half of the year, the industrial concentration will increase, which will help leading enterprises to expand their market share and reverse the current trend. This is undoubtedly a big plus for leading companies like Leshan Power and Tianwei Baobian.

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