As the country has proposed a climate goal of "zero carbon" or "carbon neutrality", it has become a global consensus to develop renewable energy represented by photovoltaics. HIT is a popular concept in the field of photovoltaics. The stock prices of related companies have risen one after another, and have attracted the continued attention of investors.
Jiejia Weichuang (300724) is a national high-tech enterprise engaged in the research, development, production and sales of crystalline silicon solar energy (000591) battery equipment. The main products include PECVD and diffusion furnaces, photovoltaic equipment, cleaning, etching, fleece making, fully automatic screen printing equipment and other crystalline silicon solar cell production process, and supporting automation equipment, intelligent workshop systems, high-end display, wet method and furnace tube equipment research and development, manufacturing and sales of advanced semiconductors.
In 2021, the global photovoltaic installed capacity is expected to reach 170 GW, a record high. Since it is an important supporting industry in the photovoltaic industry, Jiejiawei's performance is directly affected by the prosperity of the photovoltaic industry.
htmlOn the evening of April 27, Jiejia Weichuang disclosed its 2021 annual report. Whether it is operating income or net profit, Jiejia Weichuang has reached the best level in history, and the high prosperity has continued to the first quarter of this year. The first quarter report of 2022 showed that the operating income was 1.363 billion yuan, a year-on-year increase of 15.77%; the net profit attributable to shareholders of listed companies was 273 million yuan, a year-on-year increase of 29.26%, and the net profit hit a record high.But contrary to the performance, Jiejia Weichuang's stock price fluctuated downward after hitting a high of 210.8 yuan per share in August 2021, and has fallen by about 70% so far, and has not kept up with the performance that has set new highs. Jiejiaweichuang focuses on HIT technology. As the industry leader, the decline in stock prices reflects the market's concerns about its performance.
From the analysis of the SGI index score of Jiejia Weichuang Hexun, the company scored 73 points. Judging from the nine quarters shown in the figure, the score gap is small and the score is low, which also shows that the company's performance in these nine quarters is unsatisfactory.
The four major reasons for the decline in gross profit margin
Jiejia Weichuang achieved operating income of 5.047 billion yuan in 2021, a year-on-year increase of 24.80%; net profit attributable to shareholders of listed companies was 717 million yuan, a year-on-year increase of 37.16%.
Figure: 2021 Jiejia Weichuang annual report
Compared with comparable peer companies such as Dier Laser (300776) and Maiwei Co., Ltd. (300751), Jiejia Weichuang's revenue growth rate in 2021 is not satisfactory, but the year-on-year growth rate of net profit and non-net profit is relatively high. This shows that Jiejia Weichuang's main business has a strong growth momentum and strong profitability, but there are signs of weak growth.
At present, the market competition in my country's photovoltaic equipment industry is relatively fierce. In the past year, many companies in the photovoltaic equipment industry experienced a decline in gross profit margins.
From 2018 to 2021, Jejia Weichuang's gross profit margin was 40.08%, 32.06%, 26.43% and 25.99%, respectively, showing a gradual downward trend. Gross profit margin in 2021 fell by 1.83% year-on-year.
During the same period, Maiwei shares' gross profit margins were 39.55%, 33.82%, 34.02% and 38.30%, respectively, which were relatively stable. Gross profit margin in 2021 increased by 4.04% year-on-year. Compared with Maiwei Co., Ltd., Jiejia Weichuang has a very obvious disadvantage in gross profit margin.
Figure: 2021 Jiejia Weichuang Annual Report
It is worth mentioning that the gross profit margin fell by 12.46% on the premise that the year-on-year increase in operating income of automation equipment outperformed the revenue growth rate of revenue. Automation equipment is expected to become the mainstay of Jiejia Weichuang's future revenue, but it is the first time to solve the problem of decline in gross profit margin.
What is the main reason for the decline in the gross profit margin of Jiejia Weichuang last year?
1, due to the broad incremental space of the photovoltaic equipment industry, the high growth and high profitability of this track have made countless potential entrants salivate. After the industry injected new force, the smell of gunpowder has become increasingly strong. In the situation of "a group of wolves", Jiejia Weichuang faces certain potential threats and pressures.
Judging from the layout of domestic companies, in addition to Dier Laser, Maiwei Co., Ltd.'s actions in the photovoltaic industry are indeed very aggressive. Maiwei Co., Ltd. not only entered the field of photovoltaic laser equipment, but also achieved the first export of domestic HJT whole-line equipment in December last year, and its current market value has reached 62.4 billion yuan. The market value of Jiejia Weichuang is only 23.03 billion yuan.
2, the imbalance in the supply and demand relationship in the industry has led to the continuous rise in prices of raw materials such as silicon materials. The maximum cost of solar cell production equipment is direct materials, accounting for about 85% of the total cost every year.iFind data shows that silicon material prices have continued to rise since the beginning of 2021. Although the higher points have been pulled back, they are still at a high level. The increase in raw materials prices puts pressure on Jiejia Weichuang's gross profit margin.
Figure: 2021 Jiejia Weichuang annual report
3, the gross profit margin of semiconductor doped deposition photovoltaic equipment and automation supporting equipment has declined.
4, policy environment changes and other factors may affect the sales price of Jiejia Weichuang's products, and thus affect the gross profit margin.
According to the National Development and Reform Commission, starting from August 1, 2021, the central government will no longer subsidize newly registered centralized photovoltaic power stations, industrial and commercial distributed photovoltaic projects and newly approved onshore wind power projects, and will implement parity access to the Internet. The realization of parity of
Internet access has transformed the development of the photovoltaic industry from policy-driven to entreontological driving. Developing high-efficiency batteries to reduce the cost of kilowatt-hours-"cost reduction and efficiency enhancement" has further become the trend and mainstream direction of industry development.
It is worth noting that Jiejia Weichuang's gross profit margin in the first quarter of this year was 27.13%, which was on the rise.
The difference between gross profit margin is the net profit margin, which increased by 1.49% year-on-year in 2021.
Although management expenses have increased significantly in 2021, sales expenses and financial expenses have declined significantly year-on-year, effectively hedging the increase in management expenses. As the revenue of Jiejia Weichuang expands, the company's cost control capabilities have been strengthened and its operating efficiency has been improved.
Figure: 2021 Jiejia Weichuang Annual Report
Inventory amount is huge, with cash flow increasing by 304.33% year-on-year
2021 Jiejia Weichuang's inventory reached 4.033 billion yuan, a slight increase year-on-year, but the scale is relatively large.
Figure: 2021 Jiejia Weichuang Annual Report
It is worth noting that the inventory amount of Jiejia Weichuang in 2021 accounted for 34.26% of the total assets, a year-on-year decline of 9.63% compared with 2020, because monetary funds increased a lot during this period, resulting in a decrease in the proportion of inventory. There are two main reasons for the increase in inventory amount:
1. The supply, production and sales cycles of Jiejia Weichuang's main equipment are relatively long, from raw material procurement to product production, and then to sending products to customers, all are listed in the inventory account for a long period of time.
2. According to Jiejia Weichuang’s revenue recognition policy, the company sends the product to the customer and passes the acceptance by the other party before it can confirm the income. Generally, the equipment issued will have a certain acceptance period. Before acceptance, the part of the products are reflected in the inventory, which greatly affects the company’s inventory balance.
In this case, if downstream customers cancel the order or delay acceptance, Jiejia Weichuang may cause the risk of inventory sluggishness and price decline, which may adversely affect the company's operating performance.
It is gratifying that although the huge inventory amount has an important impact on the cash flow in operating activities, cash flow increased by 304.33% year-on-year in 2021, amid the double growth in revenue and net profit, which has reserved abundant funds for Jiejia Weichuang to expand reproduction and R&D.
R&D expenses have hit a record, entering the semiconductor track
Jiejiaweichuang invested 238 million yuan last year, a year-on-year increase of 24.38%, and the number of R&D personnel increased by 51.74% to 698. Whether it is R&D expense investment or the number of R&D personnel, Jiejiawei set a record high.
Jiejia Weichuang is actively deploying technologies such as TOPCon, HJT, and perovskite while continuing to develop the PERC business space. At the same time, actively expanding to the semiconductor industry, the second growth curve is within reach.
In the field of semiconductor equipment, Chuangweiwei Electronics, a wholly-owned subsidiary of Jiejia Weichuang, has independently developed 6-inch, 8-inch and 12-inch wet etching and cleaning equipment, including basket-free trough equipment and single-chip equipment, covering a variety of front-channel wet processes, realizing the company's strategic expansion from the field of photovoltaic equipment to the field of semiconductor equipment.
Figure: 2021 Jiejia Weichuang Annual Report
Currently, the leading company in HIT photovoltaic cell technology in China is Jiejia Weichuang and Maiwei Co., Ltd. Judging from the proportion of R&D of both parties, the proportion of R&D of Jiejia Weichuang has generally shown a downward trend year by year, while the proportion of R&D of Maiwei shares has generally shown a upward trend year by year. As a new concept technology that requires a lot of investment in research and development, HIT technology does not have an advantage over its competitors.
Figure: 2021 Maiwei Co., Ltd. Annual Report
HIT technology has a total of four process links: fleece cleaning, PECVD, TCO and screen printing. Jiejia Weichuang has carried out technical research and development in three links, while Maiwei Co., Ltd. has invested in research and development in all four process links. In comparison, Maiwei Co., Ltd. has stronger independent and controllable capabilities. The gap in R&D investment in
may be one of the reasons why Maiwei Co., Ltd.'s stock price has increased significantly higher than Jejia Weichuang since this year.
The stock price fell 41.4% in the first half of the year
In early July last year, the stock price of Jiejiaweichuang began to rise, and on August 23, the stock price once stood at a high of 210.83 yuan per share. According to the normal routine of A-shares, after the company's stock price rises, it is time for shareholders to cash out, and Jiejia Weichuang is no exception!
chart: Jiejia Weichuang stock market trend chart
August 11, 2021, on the day the three-year lock-up period was lifted, Jiejia Weichuang issued an announcement on the reduction of holdings on the controlling shareholder, actual controller and its joint actors, directors and senior management personnel, with a total planned reduction of holdings no more than 5.56% of the total share capital.
is only two months away from the end of 2021. When it is basically possible to judge the annual performance, Jiejia Weichuang has launched an equity incentive plan. In response, on November 1, the Shenzhen Stock Exchange issued a letter of concern, questioning the rationality of Jiejia Weichuang's restricted stock incentive plan.
performance is unsatisfactory, coupled with the company's "sexy operation", the stock price fell by 27% in 2021, underperforming the market.
Entering 2022, although Jiejiawei's performance is good, it is still difficult to stop the decline in stock prices. As of May 27, the stock price was 66.3 yuan per share, which can be said to have fallen by 41.4% in the first half of the year.
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