"Electric Eel Finance" Li Xiaoxiao text.
Electric Eel Finance pays attention to the fact that the momentum of the development of the photovoltaic industry is very strong at this stage, but enterprises in the industry are facing the problem of overcapacity, and involution, surplus, and price reduction have become topics that photovoltaic companies cannot avoid in 2023. However, in the case of widespread doubts about photovoltaic overcapacity, many domestic photovoltaic giants have thrown out plans to spin off subsidiaries and go public
Three leading photovoltaic companies are promoting spin-offs and listings.
In October 2020, the "Opinions on Further Improving the Quality of Listed Companies" was issued, which clearly stated that it would strengthen the construction of the basic system of the capital market, vigorously improve the development quality of listed companies, promote listed companies to become better and stronger, improve the spin-off and listing system, and stimulate market vitality.
Relevant data show that according to the date of the first announcement, 40 and 52 A-share listed companies will start spin-offs in 2022 and 2023 (as of December 11), respectively, of which 13 companies have been listed, which shows that the enthusiasm for spin-offs of A-share listed companies has continued to heat up in the past two years.
On December 8, 2023, Sungrow Power Supply Co., Ltd. (hereinafter referred to as "Sungrow") announced that according to the overall strategic layout of Sungrow, combined with the business development needs of its holding subsidiary Sungrow New Energy Development Co., Ltd., Sungrow intends to start the preparatory work for spinning off Sungrow New Energy to be listed on the domestic ** exchange.
Sunshine New Energy is mainly engaged in system research and development, project development and system solution sales of new energy power stations, and provides global customers with system solutions covering the whole life cycle of clean energy projects such as system research and development, development investment, design and construction.
In April 2023, Trina Solar Co., Ltd. (hereinafter referred to as "Trina Solar") announced that Trina Solar intends to plan the spin-off and listing of Trina Solar in light of the business development needs of Jiangsu Trina Smart Distributed Energy Co., Ltd., a subsidiary of Trina Solar. Since then, Tianhe Wisdom has changed its name to Li Tianhe Fujia Energy Co., Ltd., hereinafter referred to as "Tianhe Fujia"), and Tianhe Fujia has been registered with the Jiangsu Securities Regulatory Bureau on June 25, and is expected to be officially accepted by the main board of the Shanghai Stock Exchange in the near future.
Founded in 2016, Trina Solar's subsidiary focuses on the distributed photovoltaic power generation market, and its main business is to provide distributed photovoltaic system solutions (including residential, industrial and commercial, etc.) and digital energy management. As an early participant in the distributed photovoltaic market, Trina Fujia's business scale has been at the forefront of the industry after years of development.
In October 2022, Zhejiang Chint Electric Co., Ltd. *** hereinafter referred to as "Chint Electric") announced that Chint Electric intends to plan the spin-off and listing of its holding subsidiary Chint Aneng Digital Energy (Zhejiang) Co., Ltd. *** hereinafter referred to as "Chint Aneng"), and authorize the management of Chint Electric and Chint Aneng to start the preparatory work for the spin-off of Chint Aneng's listing. In September 2023, CHINT's application for listing on the main board of the Shanghai Stock Exchange was accepted.
The main business of CHINT Aneng is distributed photovoltaic power stations, commonly known as "photovoltaic roofs". CHINT Aneng has formed excellent design and development capabilities for residential photovoltaic power plants, with efficient power station monitoring and operation and maintenance capabilities, and can deliver high-quality and high-standard residential photovoltaic power station products to customers, as well as services covering the whole life cycle of household photovoltaic power plants.
The residential PV market has broad room for growth.
It is reported that on August 27, 2023, after the China Securities Regulatory Commission proposed to "reasonably grasp the rhythm of IPO and refinancing" and "tighten the rhythm of IPOs in stages" (hereinafter referred to as the "827 IPO New Deal"), not only the number of IPOs on the acceptance side has decreased overall, but the speed of IPO review has also slowed down.
Chint Aneng's IPO application was officially accepted by the Shanghai Stock Exchange, becoming the first enterprise to be accepted by the Shanghai Stock Exchange since the "827 IPO New Deal". In addition, Tianhe Fujia will be registered with the Jiangsu Securities Regulatory Bureau on June 25, 2023, and is expected to officially submit materials to the stock exchange in the near future.
Based on the above situation, although the pace of IPO has been tightened at this stage, some high-quality enterprises that are in line with the national strategic direction, have broad industry prospects, and are highly representative high-quality enterprises with mature business models, stable operating performance and large scale, their IPO application channels are still unimpeded. At the same time, one of the three leading enterprises in the photovoltaic industry has been accepted and entered the inquiry stage at this time, and it can also be seen that the regulator and the capital market are more recognized by the photovoltaic industry.
Electric Eel Finance learned that on December 13, the Ministry of Industry and Information Technology released the latest situation of the current national photovoltaic manufacturing industry, data show that from September to October this year, China's photovoltaic manufacturing industry maintained a high level of operation, and the output of silicon materials, silicon wafers, cells and modules increased by more than 60% year-on-year. At the same time, the new domestic photovoltaic installed capacity also hit a record high, according to the National Energy Administration, the first three quarters of the domestic photovoltaic new installed capacity of 12894GW, up 145% year-on-year.
In terms of distributed photovoltaics, under the continuous promotion of the policy background of "carbon peaking and carbon neutrality", based on the characteristics of diversified application scenarios and conducive to nearby consumption and utilization, the cumulative installed capacity of distributed photovoltaics in China has maintained a rapid growth trend, especially in the residential photovoltaic field to which Chint Aneng and Tianhe Fujia belong, has become the main force leading the growth of photovoltaics.
Relevant data show that the grid-connected installed capacity of China's household photovoltaic power stations in 2019 has increased from 418GW reached 25 in 202225GW at a CAGR of 8212%, and the installed capacity of household PV from January to June 2023 will reach 2152GW, up 141 year-on-year43%。
Driven by policy support and market demand, China's household photovoltaic will continue to maintain a healthy and sustainable development momentum, effectively contributing to the realization of the two major national strategies of carbon peak, carbon neutrality and rural revitalization, and household photovoltaic will also become an important part of building China's new power system in the future.
On the other hand, in March 2021, the National People's Congress issued the "Outline of the 14th Five-Year Plan for National Economic and Social Development of the People's Republic of China and the Long-Range Objectives Through the Year 2035", which mentioned that the construction of intelligent power grid infrastructure and smart microgrids should be accelerated, and the power system should be provided with complementary and intelligent regulation capabilities. The diversification of residential PV applications will also further promote the development of the residential PV industry, which has a broad market space. The good market prospect may also be the confidence for the three PV giants to spin off their related businesses and go public independently.
PV giants seize the opportunity of spin-off in subdivided industries.
After the research of Electric Eel Finance, it was found that the three companies of Zhengtai Aneng, Tianhe Fujia and Sunshine New Energy are all important parts of the deepening development of domestic photovoltaic industry giants in the field of segmentation, and the three companies to be spun off have their own focus in the field of segmentation, and Zhengtai Aneng and Tianhe Fujia are more focused on the field of household photovoltaics.
According to the prospectus of Chint Aneng, Chint Aneng focuses on the expansion and operation of residential photovoltaic business. However, at present, there are no companies among the A-share listed companies that are completely consistent with the business model and business structure of Chint Aneng. It is not difficult to see that at this stage, the development space of the residential photovoltaic industry is broad, but there is no company focusing on this field to be listed. If Chint An, which has entered the inquiry stage, can successfully complete the IPO, it will fill the gap of A-shares in the residential photovoltaic sector.
Chint Aneng Prospectus Main financial data and main financial indicators.
According to the prospectus of Chint Aneng, from 2020 to 2022 and from January to June 2023, the operating income of Chint Aneng will be 163.3 billion yuan, 563.1 billion yuan, 1370.4 billion and 1370.5 billion yuan, showing a rapid growth trend overall. In each period of the reporting period, the grid-connected installed capacity of Chint Aneng's new residential photovoltaic power stations was 182gw、4.57gw、7.54GW and 533GW with a CAGR of 103 from 2020 to 202254%, always maintaining the first place in the industry.
Electric Eel Finance learned that TRW Fujia, which also belongs to the household photovoltaic field, will have a revenue of 129 in 20228.8 billion yuan, and the net profit attributable to the parent company was 71.9 billion yuan, with a profit increase of about 17 in the three years from 2020 to 20229 times. Trina Fujia is the first in the industry to mention the concept of original photovoltaic systems, and has established a complete system integrating product research and development, marketing and sales, installation and after-sales, and intelligent operation and maintenance, leading the industry in the shipment of household photovoltaic systems.
On the other hand, the controlling shareholder of Sunshine New Energy is also a global battery energy storage system integrator giant, with a revenue of 128 in 20227.7 billion yuan, net profit of 64.1 billion yuan, from January to September 2023, Sunshine New Energy's revenue reached 1380.2 billion yuan, net profit of 70.3 billion yuan, comprehensively exceeding the whole year of 2022.
It is not difficult to see that in recent years, the above three spun-off companies have expanded rapidly, and the revenue scale has exceeded 10 billion, forming a good scale effect, and in terms of the current development of the industry, its performance still has a strong growth momentum. Photovoltaic giants have seized the best opportunity to spin off and complete the independent listing of subsidiaries in the rapid development stage of subdivisions, which on the one hand enhances the independence of the subsidiaries' operations, and at the same time broadens the financing capabilities of subsidiaries, providing momentum for the development of enterprises in subdivided fields.
Electric Eel Finance will pay attention to the development of the distributed photovoltaic industry, especially the residential photovoltaic field, and the progress of the above three companies to be spun off and listed.
Electric Eel Express