On the evening of January 27, Zhonghuan Co., Ltd. (002129) disclosed the 2021 annual performance forecast. The company is expected to achieve an operating income of 40 billion to 42 billion yuan in 2021, a year-on-year increase of 109.90% to 120.39%, and a net profit of 3.8 billion to 4.2 billion yuan. , a year-on-year increase of 248.95%-285.68%; deducted non-net profit of 3.5-3.9 billion yuan, a year-on-year increase of 267.38%-309.37%.
210 silicon wafer production capacity accelerated
Regarding the reasons for the company’s performance growth, Zhonghuan Co., Ltd. said that the company’s semiconductor photovoltaic 210 product production capacity has been accelerated to continue to consolidate its industrial competitiveness. It will take advantage of 210 product differentiation and cost advantages to ease the cost pressure of downstream customers and enhance its own competitiveness.
Through a series of technological advancements, during the reporting period, the production efficiency of a single furnace of Zhonghuan Co., Ltd. was leading in the industry, and the consumption rate of silicon material per unit product decreased significantly year-on-year. To improve the gross profit per unit product to a greater extent; in the face of fluctuations in the price of polysilicon raw materials, the company has established a good supply chain cooperation for a long time and reasonably controlled inventory, which has better guaranteed the company’s production and operation.
In addition to the photovoltaic business, the semiconductor material business of Zhonghuan Co., Ltd. has released effective production capacity by accelerating the commissioning of new production lines, and improved product supply capacity. The scale of production and sales has increased significantly year-on-year, and the product structure has been further improved; it has accelerated the promotion of technology research and development and customer certification, and has rapidly upgraded product dimensions. Product layout; new investment projects in Tianjin and Yixing, Jiangsu are progressing smoothly, while accelerating brand building and globalization, laying a foundation for the accelerated development of the semiconductor business.
Zhonghuan Co., Ltd. said that with the application of Industry 4.0 and flexible manufacturing smart factory production methods in the company’s various industrial sectors’ operating processes and operating scenarios, during the reporting period, per capita labor productivity has increased significantly, product quality and consistency have continued to improve, raw materials and auxiliary materials have been improved. Consumption has been effectively improved, and factory operating costs have continued to decline; a flexible cooperation model has been established in collaboration with upstream and downstream customers to reduce transaction costs and enhance the competitiveness of itself and customers; it has effectively promoted the company’s product production and sales scale and product quality.
Huaxi Securities believes that the fourth 210 wafer factory of Zhonghuan Co., Ltd. is poised for development, with a total planned production capacity of more than 105GW. It will continue to leverage the competitive advantages of 210 wafers and further consolidate the company’s leading position and market share in the photovoltaic wafer market. The company takes advantage of G12 product differentiation to ease the cost pressure of downstream customers and enhance its own competitiveness.
The agency also pointed out that domestic customer orders for Zhonghuan’s 12-inch products have exploded, and the company has released effective production capacity by accelerating the commissioning of new production lines. At present, the first phase of the 8-12-inch large silicon wafer project has entered the final stage of acceptance, and the second phase of the project has been launched ahead of schedule to accelerate the expansion of production capacity.
Silicon wafer prices still have room to rise
It is worth noting that, just one day before the announcement of the results, Zhonghuan Co., Ltd. announced a comprehensive increase in the price of monocrystalline silicon wafers. On January 26, Zhonghuan Co., Ltd. announced the latest silicon wafer price. Compared with the last price, this time the price has been raised in an all-round way. Taking 160μm as an example, the price of silicon wafers with different specifications has been increased by 0.4-0.92 yuan/piece.
Earlier on January 16, LONGi had taken the lead in raising the price of silicon wafers. Among them, the current price of single crystal silicon wafer P-type M10 165μm thickness is 6.15 yuan / piece, an increase of 5.1%; the current price of single crystal silicon wafer P-type M6 165μm thickness is 5.15 yuan / piece, an increase of 2.4%; single crystal silicon wafer P-type 158.75 / The current price of 223mm 165μm thickness is 4.95 yuan / piece, an increase of 2.5%.
According to the data of the Silicon Industry Branch, the price range of M6 monocrystalline silicon wafers (166mm/165μm) this week is 5.2-5.3 yuan/piece, and the average transaction price has increased to 5.24 yuan/piece, a week-on-week increase of 1.35%; M10 monocrystalline silicon The price range of wafer (182 mm/165μm) is 6.2-6.4 yuan/piece, and the average transaction price has increased to 6.28 yuan/piece, with a week-on-week increase of 1.78%; G12 monocrystalline silicon wafer (210mm/160μm) The price range is 8.35-8.55 Yuan/piece, the average transaction price increased to 8.46 yuan/piece, a week-on-week increase of 9.59%.
The silicon industry branch believes that the main reason for the continued price rise this week is the short-term demand boost. From a supply point of view, production has increased substantially. First-tier companies still maintain high operating rates, and third-party silicon wafer companies have also increased operating rates to varying degrees. The increase in operating rate not only made up for the supply gap affected by the earthquake at the beginning of the month, but also made the production of silicon wafers this month increase significantly year-on-year.
From the perspective of demand, the overseas market is hot, and domestic policies support it. The tariff window period made India jump to become China’s largest exporter of batteries and the third largest exporter of modules in December. Among them, the export of cells and modules totaled 2.92GW, an increase of 2.1GW, equivalent to an increase of about 1.68GW in silicon wafer demand. In addition, policy orientation has further stimulated the terminal demand. As the terminal gradually accepts the module quotation of 1.85 yuan/W, it is expected that the demand will still be strong in the short term, and the price of silicon wafers will still have room to rise.
According to the analysis of the Silicon Industry Branch, the demand for silicon wafers in February is expected to continue the hot trend. At present, the conventional supply of silicon wafers has basically reached the upper limit, and part of the production capacity affected by the Qinghai earthquake has become an expected increase in supply. Therefore, it is expected that the supply and demand of silicon wafers will be balanced in February, and the increase in demand is expected to exceed the increase in supply, turning the market into a situation of short supply, and the price of silicon wafers may rise by the trend.