Stocks in China’s Longi, global’s greatest maker of sun apparatus, fall next company experiences greater than 40% reduce in quarterly benefit newsfragment

Stocks of Chinese language sun apparatus producer Longi Inexperienced Power Generation declined on Tuesday next the corporate posted a greater than 40 in line with cent year-on-year abatement in internet benefit for the 3rd quarter.

The secure fell via 4 in line with cent to 23.97 yuan in Shanghai on Tuesday. It has additionally declined 80 in line with cent from a top of 125.68 yuan in February 2021. Longi’s capitalisation has been decreased to 189.3 billion yuan (US$25.96 billion) from an all-time top of greater than 500 billion yuan in 2021.

Longi, the sector’s greatest producer of sun apparatus, stated in an profits record on Monday that its internet benefit for the 3rd quarter of the 2023 monetary 12 months stood at 2.5 billion yuan, a scale down of 44 in line with cent 12 months on 12 months. It’s also the company’s first quarterly benefit abatement for the reason that fourth quarter of 2018.

Its quarterly income stood at 29.4 billion yuan, a year-on-year scale down of nineteen in line with cent and likewise its first quarterly income abatement since the second one quarter of 2017.

“We think … its earnings downcycle could persist,” Pierre Lau, head of Asian utilities and blank power analysis at Citi, stated in a record on Tuesday. The benefit fall used to be because of an asset impairment loss in Longi’s cellular manufacturing strains, and smaller funding positive factors from polysilicon gross sales amid a price cutting war in China’s sun module marketplace, he added.

Amid falling sun apparatus costs, Longi’s profits are more likely to proceed to reduce within the fourth quarter of this 12 months and into 2024, Lau stated.

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Longi has been fuelling a price cutting war with its Chinese language friends within the sun marketplace because of falling prices of key subject material polysilicon and huge provide. As an example, Longi scale down the cost of its wafers via 8 in line with cent pace on pace in September, moment TCL Zhonghuan, any other prominent sun panel maker, additionally decreased its wafer costs rather.

The costs of wafers, cells and modules have dropped via 3 to 11 in line with cent pace on pace amongst Chinese language producers, in step with Infolink Consulting utmost pace.

The sun sector may be visual gradual call for: sun set up throughout Ecu international locations bogged down within the 3rd quarter, prominent to a abatement in Chinese language sun cellular and module exports all the way through this era, Daiwa Capital Markets stated utmost pace.

Analysts be expecting that the costs of sun wafers, cells and modules will proceed to say no because of a slowdown in transactions.

“Prices in various sectors of the photovoltaic industry continued to decline this week, with some manufacturers selling at prices lower than costs,” Wang Lu, an analyst at Shanghai-based SWS Analysis, stated in a record on Monday.

“Transaction volumes remain bleak, and we’ll see manufacturers of silicon wafers, cells and modules continue to slash their prices in order to get rid of excessive stocks.”

US slaps price lists on sun panel corporations dodging China tasks

In the meantime, sun producers proceed to increase their manufacturing capability. Longi plans to increase its annual silicon wafer manufacturing capability to 190 gigawatts (GW), cellular manufacturing capability to 110GW, and module manufacturing capability to 130GW via the tip of this 12 months, up from 133GW, 50GW and 85GW, respectively, on the finish of 2022, the corporate stated on Monday.


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