In the era of involution, opportunities and potential challenges coexist in Junda
*: Photo.com.
Text: Daily Financial Report Lv Mingxia.
Recently, Junda shares (002865SZ) announced the issuance of H shares and application for listing on the Main Board of the Hong Kong Stock Exchange.
According to the announcement, within 18 months after the approval of the general meeting of shareholders, Junda shares will choose an appropriate time and issuance window to complete the issuance and listing. The proportion of its issuance shall not exceed 25% of the post-issuance share capital. If Junda shares successfully land on the Hong Kong Stock Exchange this time, it will become the first photovoltaic cell manufacturer listed on "A+H".
Junda shares, with the help of mergers and acquisitions, have realized the gorgeous transformation of automotive trim parts to photovoltaics, and solved the performance problem. However, under the capital "winter" of the photovoltaic industry, there are still many challenges to listing Junda shares in Hong Kong at this time.
Last year's revenue and net profit both increased, and the prospectus was different from the ** business data
Recently, Junda shares disclosed the performance report, benefiting from the significant expansion of N-type production capacity and leading battery shipments, the company achieved an operating income of 183 last year9.7 billion yuan, a year-on-year increase of 5865%;Net profit attributable to shareholders of listed companies83.2 billion yuan, a year-on-year increase of 1600%, deducting non-net profit of 57.5 billion yuan, a year-on-year increase of 1664%。
In the case of the slowdown in the annual performance growth of some photovoltaic manufacturers in 2023, Junda shares achieved 5865% revenue growth and 1600% net profit increase, it seems that the performance answer sheet handed over is not bad.
However, it is worth noting that there are many inconsistencies between the relevant data published by Junda shares in the prospectus and the data released by the ** business.
*: Highview Solar prospectus.
For example, in 2022, Gaojing Solar, as the second largest supplier of Junda shares, will purchase 178.6 billion yuan, and in the prospectus of Gaojing Solar, Junda shares as its fourth largest customer, with sales of 197.3 billion yuan. The difference between the data released by the two is nearly 200 million yuan.
*: Junda share prospectus.
From 2021 to 2022, JinkoSolar is the No. 1 largest supplier of Junda Co., Ltd., with a purchase amount of 43 billion and 200.6 billion yuan. Especially in 2022, based on the above purchase amount, Junda can become one of JinkoSolar's top 5 customers. However, JinkoSolar's 2022 annual report shows that the sales of the company's top five customers are not consistent with the purchase amount of Junda shares.
*: JinkoSolar's 2022 annual report.
This data discrepancy is really worth noting. Under normal circumstances, the sales and purchase amount between the top merchants of one company and the top customers of another company should match each other, or at least on the same order of magnitude.
This further increases investors' doubts about the company's transparency and accuracy. Data inconsistencies can stem from a variety of reasons, however, whatever the reason, such inconsistencies can affect investors' judgment about a company's true financial health and business performance.
Cross-border "chasing light" rookie
In fact, Junda Co., Ltd. was originally mainly engaged in the auto decoration business, but under the take-off of domestic automobile consumption and the operation of the Yang Renyuan family, it successfully rose and landed in the capital market.
However, after listing, its performance was not satisfactory. Wind data shows that from 2018 to 2021, the company's net profit attributable to the parent company declined for 4 consecutive years, and even suffered a loss in 2021.
Under the crisis, Yang Renyuan's eldest daughter Lu Xiaohong was appointed as the chairman of the company in June 2019 and began to make strategic adjustments to the business direction of Junda.
Lu Xiaohong was born in accounting, has good financial skills, and divested the auto decoration business and transformed the photovoltaic cell industry across borders. In September 2021, it acquired Jietai Technology and its subsidiaries, and the original automotive plastic parts business ceased operations in June 2022.
In addition to the comprehensive transformation of photovoltaics, Junda shares also bet on the N-type TOPCON technology route. It is thanks to this acquisition that Junda has achieved a perfect transformation, successfully seized the dividend period of TOPCon battery technology, and created obvious advantages in production capacity and product structure.
According to the prospectus, the sales volume of photovoltaic cells of Junda shares has increased from 18GW to 10 in 20227GW and increased to 19 in the first three quarters of 20236GW, compared to 6 in the same period in 20229gw。
In terms of finance, in just two years, the performance of Junda shares has achieved a turnaround and substantial growth. Its revenue scale increased from 85.8 billion yuan, an increase of 21 times to 183 in 20239.7 billion yuan, net profit from 1354 in 2022640,000 yuan, turning around losses and increasing 61 times to 83.2 billion yuan.
Junda's ability to achieve a reversal in performance after entering the photovoltaic track does show the effectiveness of this cross-border decision. However, from a long-term perspective, Junda shares still have a long way to go. Under the strongest involution in history, Ren leading manufacturers dare not slack off.
What are the prospects for expanding overseas production capacity?
As the industry leader with the largest market share of n-type batteries, Junda's production capacity and technical advantages will provide a buffer for its performance growth.
According to TrendForce**, in 2023, the total cell production capacity will be 1,173GW, of which N-type TOPCon cell production capacity has reached 676GW, accounting for 84% of N-type cell production capacity, and according to the nine-month expansion cycle of the battery factory line, a large number of TOPCon cell production capacity will be officially put into operation in 2024. are spending money to expand production, but after all, the market is limited, and Junda's topcon production capacity advantage is facing the risk of being eroded by integrated manufacturers and cross-border players.
In the face of intensified competition in the domestic market, Junda is planning to "go to sea" to broaden the development space. Junda disclosed in the performance express report that the company's overseas sales proportion will increase to 4 in 202375%, has achieved customer development in Asia and Europe, and completed customer certification in emerging markets such as North America, Latin America, and Australia. Junda's management previously expected that in 2024, the company's target overseas sales accounted for more than 10%.
The funds raised from the IPO will also be used to build overseas production capacity of high-efficiency batteries, establish and strengthen the company's overseas sales business and distribution channels, build a global R&D center and replenish working capital.
However, despite the huge development opportunities overseas, the risks and concerns faced by going overseas cannot be ignored.
After all, after going abroad, for enterprises, the operation model, chain construction, and channels will face new challenges. The uncertainty of international policies and the cost of building factories that are several times higher than those in China are all severe tests for Junda shares to go overseas.
In short, although Junda has made certain achievements in the photovoltaic industry, the challenges and problems it faces cannot be ignored. Therefore, on this non-stop track, continuing to enhance its core competitiveness in the field of photovoltaic cells is the next unstoppable task of Junda shares.