China International Capital Corporation's outlook for photovoltaics in 2025: Advantageous industry breaks through difficulties, cycle bottoming sees dawn.
The current Sector valuation is still at the bottom stage, and a beta opportunity is expected to come next year.
Research Reports Gold Digging | China International Capital Corporation: The valuation of the photovoltaic Sector is still at the bottom stage, and there is hope for beta opportunities next year.
Gelonghui, January 2 | CICC published this year's photovoltaic outlook, indicating that advantageous industries break through difficulties, with signs of improvement as the cycle bottoms out. The firm believes that the photovoltaic industry, as a Global leading advantageous Industry in China, is expected to reverse its fundamental challenges this year under the backdrop of the dual carbon goals and the combined effects of market rules and industry self-discipline. Currently, the Sector's valuation is still at the bottom stage, and it is believed that beta opportunities are expected to emerge next year, with leading companies in segmented links and new technologies having allocation value. CICC recommends paying attention to the following main lines: first, silicon materials, where the cost curve is relatively steep, and companies to the left of the cost curve are expected to turn losses into profits next year, focusing on Tongwei.
Zhejiang Chint Electrics (601877.SH): It is expected to purchase photovoltaic modules from related parties in 2025 for a total not exceeding 3 billion yuan.
Glonghui, December 27丨Zhejiang Chint Electrics (601877.SH) announced that on December 27, 2024, the company convened the thirty-first meeting of the ninth Board of Directors to review and approve the "Proposal for the Estimated Procurement of Photovoltaic Modules from Related Parties for 2025." It is expected that in 2025, the company and its subsidiaries (including but not limited to Zhejiang Chint Digital Energy Co., Ltd. (referred to as "Zhejiang Chint Aneng") and its subsidiaries, Zhejiang Chint New Energy Development Co., Ltd. (referred to as "Zhejiang Chint New Energy") and its subsidiaries, and other subsidiary companies) will procure from Zhejiang Chint New Energy Technology Co., Ltd. (referred to as "Zhejiang Chint New Energy").
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Event description: The company released its 2024 third-quarter report, with revenues of 46.4 billion yuan from Q1 to Q3, a year-on-year increase of 9%; after excluding the impact of the central control, the attributable net profit was 3.46 billion yuan, a year-on-year increase of 12%. Among them, Q3 2024 revenue was 174.
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Event: In the first three quarters of 2024, revenue reached 46.409 billion yuan, an increase of 8.89% year-on-year; net income attributable to the parent company was 3.498 billion yuan, an increase of 16.93% year-on-year; non-net income attributable to the parent company was 3.359 billion yuan, an increase year-on-year.
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CICC: In Q3, the profitability of the photovoltaic industry chain remains low. Prices in the Q4 peak season are expected to slightly rebound to the cash cost level.
In terms of pace, the price of the Q3 photovoltaic industry chain is stabilizing, inventory devaluation is expected to improve slightly, but profitability is still at a low level; in the peak season of Q4, prices are expected to rebound slightly to cash costs, but attention needs to be paid to the industry's fixed assets impairment situation.
Chint Electrics Unit to Set Up Photovoltaic Power Joint Venture
Zhejiang Chint Electrics (601877.SH): Its holding subsidiary, Taizhou New Energy Fund, intends to sign an investment cooperation agreement with Yizheng Investment.
On September 20, Chint Electric (601877.SH) announced that in order to improve the efficiency of asset turnover, deepen customer cooperation, expand the scale of the industry, and help the sustainable, rapid, and stable development of the company's household photovoltaic business, the company intends to sign an Investment Cooperation Agreement with Yizheng Investment through its subsidiary Taizhou New Energy. Taizhou New Energy is a wholly-owned subsidiary of Zhejiang Chint Anhouse Digital Energy (Zhejiang) Co., Ltd. (referred to as 'Chint Anhouse'). Taizhou New Energy and Yizheng Investment will each contribute 19.53 million yuan and 88.97 million yuan of self-raised funds to establish a joint venture company.
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