On May 7, Longji Green Energy released a new generation of BC module products, with a conversion efficiency of 24.43%. At the same time, the photoelectric conversion efficiency of the back-contact silicon heterojunction solar cell (HBC) independently developed by LONGE reached 27.30%, once again setting the world record for the conversion efficiency of monocrystalline silicon photovoltaic cells.
LONGi Green Energy released its 2023 Annual Report and 2024 Quarterly Report. In 2023, the company achieved total revenue of 129.498 billion yuan, a year-on-year increase of 0.39%; realized net profit to mother of 10.751 billion yuan, a year-on-year decrease of 27.41%. 24Q1 achieved revenue of 17.674 billion yuan, -37.59%/-50.07% YoY; realized net profit to mother of 2.350 billion yuan, -164.61% YoY.
Shipments continued to grow rapidly, and inventory depreciation led to a decline in profits. In '23, the company achieved 125.42 GW of silicon wafer shipments (including 53.79 GW of external sales), an increase of 47.45% year on year; module shipments of 67.52 GW (including 66.44 GW of external sales), an increase of 44.40% year on year. Affected by falling prices in the photovoltaic industry chain and US Customs suspense orders, the 23-year impairment reserve was 7.025 billion yuan, of which 5.171 billion yuan was prepared for inventory price reduction; the 24Q1 impairment reserve was 2,814 billion yuan, of which 2,649 billion yuan was prepared for inventory price reduction.
Technology is leading, and differentiated competitive advantages are prominent. On the silicon wafer side, Xinping's “Terry” uses a new TrCZ pull-crystal process, which has the advantages of good resistivity uniformity, good absorption effect, and high mechanical strength. It is compatible with various mainstream technology routes to improve battery side efficiency. On the battery side, HPBC second-generation products have high conversion efficiency, low attenuation rate, and better low light performance and temperature coefficient.
Actively allocate overseas production capacity and strengthen global supply capacity. In '23, the company gradually put into operation projects such as 2.8 GW modules in Malaysia and 3.35 GW batteries in Vietnam, and the 6.6 GW silicon rod project in Malaysia progressed in an orderly manner.
24Q1 The 5GW module joint venture plant in Ohio was officially put into operation, and global supply capacity will be enhanced.
Investment advice: Since the price of the 24Q1 module is still low, we expect the company's net profit to be 42.16/78.40/10.513 billion yuan in 24-26 years, -60.8%/+86.0%/+34.1% year-on-year, and the corresponding EPS is 0.56/1.03/1.39 yuan, respectively, giving an “increase” rating.
Risk warning: photovoltaic industry growth rate declines; risk of raw material price fluctuations; industry competition intensifies