The first quarter is the cyclical low season of the photovoltaic industry. Over the 2019, the PV policy has never been put on the ground, making the domestic PV market filled with some confusion and wait and see. A-share PV companies that have announced their first-quarter results for 2019 have not delivered their full-performing performance transcripts as expected - 7 companies expect net profit growth or turnaround in the first quarter of this year, and 6 companies still expect Net profit fell or lost. 13 A-share PV companies announced the results of a quarterly report. Data sources: The company announced that Sunshine Power (300274.SZ) and Muller New Materials (300700.SZ) and other companies are expected to decline their net profit in the first quarter. Among them, the inverter faucet Sunshine Power is expected to earn 150 million yuan to 180 million yuan, down 11% to 26% year-on-year; Jinang line leader 岱勒新æ is expected to only earn 0.04 billion yuan to 109 million yuan, down 77% year-on-year Up to 90%. Four companies, including Zhongli Group (002309.SZ), Amarton (002623.SZ), Jinggong Technology (002006.SZ) and Colin Environmental Protection (002499.SZ), are expected to suffer losses in the first quarter. Among them, the company with relatively large amount of loss is Zhongli Group, which is expected to lose between RMB 82 million and RMB 100 million. In contrast, Tongwei shares (600438.SH), Central shares (002129.SZ) and other large leading companies came to good news. Tongwei shares forecast a profit of 480 million yuan to 512 million yuan in the first quarter, an increase of 50% to 60%; Central shares are expected to earn 180 million yuan to 220 million yuan, an increase of 44% to 76%. In addition, the component giant GCL integration (002506.SZ) is expected to achieve a turnaround, with an expected profit of 0 to 0.5 billion yuan. In the first quarter, upstream of the industry chain, GCL-Poly Energy (03800.HK), Zhonghuan and Longji (601012.SH) successively raised the prices of their silicon wafers and battery chips, which once signaled the recovery of the industry. However, affected by the undecided situation of the PV policy in 2019, the faucet price adjustment did not drive the industry price to pick up. On the contrary, it was the case that such as Longji shares, the price of silicon wafers was raised one month later and then lowered. In fact, from the perspective of the price trend of the core products of the PV industry chain in the first quarter, the price trend of the first rise and then the decline has indeed conveyed the industry's expectation for this year's market. In terms of monocrystalline silicon wafers (specification: 156mm*156mm), the average weekly price rose from $0.45 per piece at the beginning of the year to $0.48 in February and March, but fell back to $0.46 at the end of March. The average price of polysilicon wafers of the same specification rose from $0.27 per piece at the beginning of the year to $0.28 in February and March, and also returned to $0.27 per piece at the end of March. It is worth mentioning that such price trends are also reflected in the battery segment. The price trend behind it reflects the current uncertainties in the domestic PV industry, which makes the profitability of A-share PV companies in the first quarter mixed. Industry analysts pointed out that the biggest destabilizing factor in the domestic PV industry is when the PV policy will fall in 2019. The person said that although the general framework of the policy is basically determined, the details have yet to be improved, and the introduction time may be postponed to April. So, in the face of fluctuating domestic market, how do PV companies deal with it? The performance forecast for some A-share companies can give an answer – relying on capacity release and overseas operations to maintain profitability. First of all, expansion is the basic means for leading PV companies to maintain profitability. For example, Tongwei shares announced that in the first quarter of this year, the company's battery capacity was further released, and various production indicators and non-silicon costs were further optimized. The gross profit margin was approximately doubled compared with the same period of last year. Zhonghuan also said that the company's advantageous production capacity The constant release is one of the important reasons for its ability to maintain profitability. Second, overseas business has become the highlight of some PV companies in the first quarter. In the performance forecast, GCL integration said that its overseas market layout has gradually matured and the orders are sufficient, and strives to increase the proportion of overseas business in 2019 to over 80%. Even the loss-making Zhongli Group has a good expansion of its PV module overseas market. Compared with the same period last year, the gross profit margin increased. Solar Inverter,Centralized Inverter,Off-Grid Inverter,Grid -Connected Inverter Fuzhou Mei Li Cheng Imp&Exp Co., Ltd , https://www.mlc-solar.com
Abstract The first quarter is the cyclical low season of the photovoltaic industry. Over the 2019, the PV policy has never been put on the ground, which makes the domestic PV market filled with some confusion and wait and see. A-share PV companies that have announced the first-quarter results for 2019 have not surrendered the whole line as expected.