After the price of silicon material rose sharply, silicon chip and battery chip went up. Longji, the leading silicon chip maker, made an adjustment. G1 increased by 0.1 yuan per chip, while M6 increased by 0.11 yuan per chip, basically equivalent to the increase in silicon material cost.
According to the analysis of Liu Jun and Liu Jiani of CICC, the gross profit rates of M6 and G1 rose by 8.2% and 2.7% respectively due to the increase of silicon chip price, which partially offset the impact of silicon material price fluctuation. At the same time, the price rise is also the first rebound since the adjustment of single crystal silicon chip price at the end of March. It is believed that under the background that the pace of leading single crystal silicon chip production expansion has not slowed down, the price has stopped falling and rebounded, which may show that the downstream demand is expected to exceed the markets previous expectations.
CICC said that the price rise of photovoltaic industry chain for the first time will improve the valuation of the sector. Meanwhile, considering the overall leading position of Longji in the photovoltaic sector for the attraction of allocation funds of new energy plate, CICC raised the companys target price by 74% to 58.3 yuan.
Wang Jibin, a new energy researcher at Tianfeng securities, said that after the price increase of silicon chips and batteries, the gross profit margin of G1 and M6 battery chips of head enterprises was about 21.8% and 26% respectively. According to the impact of silicon material maintenance, it is estimated that the output in August will be further reduced on the basis of July. Although OCI Malaysia plant will have capacity recovery in August, it is still insufficient to supplement the domestic reduction. Therefore, it is expected that the domestic market will be more in short supply in August. Considering the possibility of price adjustment for upstream silicon materials, it is expected that the prices of silicon wafers and batteries will continue to adjust.
You Jiaxun, an analyst of China Merchants Securities, believes that it is clear that Q4 will be a boom in the photovoltaic industry from next year. Q4s prosperity is relatively clear, and there is no consistent expectation for demand in 2021. Photovoltaic products in most links are more homogeneous, which is reflected in the price and profitability chasing up and down. If the demand is strong and the supply and demand are in a proper state, the profit level will be better than expected, because the cost is still falling. After getting rid of subsidy dependence, the industry will be healthier and more sustainable.
Youjiaxun expects that by the end of September, the industry will raise prices systematically, because the price of silicon wafers has been raised in recent days, the price of components will definitely rise ahead of time, and the warehouse will be built as soon as possible. Continue to recommend: Longji Co., Ltd., Dongfang Risheng Co., Ltd.; focus on Zhonghuan Co., Ltd.; silicon material recommendation: Tongwei Co., Ltd. and TBEA.
Source of this article: Yang Qian, editor in charge of CFA_ NF4425