Shenzhen S.C New Energy Technology Corporation, the equipment supplier, has maintained a high growth rate in recent years, and it is expected that the net income will increase by more than 55% YoY in the first half of this year. The company said that continuous acceptance of orders in the first half of the year brought revenue growth. Among them, the second quarter was mainly for TOPCon's orders, which performed better than expected. This year, there is a positive demand for photovoltaic terminals, and the investment enthusiasm is high. From January to May, the domestic photovoltaic installed capacity increased by 23% YoY.
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JegnJiaWeiChuang (300724.SZ), as an equipment supplier, has maintained high growth rate in recent years under the replacement demand from p-type to n-type in the photovoltaic industry. According to the performance forecast released by the company tonight, net profit in the first half of this year is expected to grow by more than 55% year-on-year. The company stated that the continued acceptance of orders during the reporting period brought about revenue growth.
JegnJiaWeiChuang is expected to achieve a net profit attributable to shareholders of listed companies of RMB 1.165 billion to RMB 1.353 billion in the first half of 2024, a year-on-year increase of 55% to 80%, according to the performance forecast. The net profit after deducting non-recurring gains and losses is expected to be RMB 1.12 billion to RMB 1.308 billion, a year-on-year increase of 62.82%-90.13%.
Since its listing in 2018, JegnJiaWeiChuang has achieved double growth in operating income and net profit every year, especially with rapid growth in recent years. The year-on-year growth rates of attributable net profit for 2021 to 2023 are 37.16%, 45.93%, and 56.04%, respectively. From the perspective of the industry, although the price of the photovoltaic industry chain is low this year, the terminal demand is relatively active and the investment enthusiasm is still high. According to the national energy statistics data released by the National Energy Administration at the end of June, the country's new installed capacity of photovoltaics from January to May this year was 79.15GW, a year-on-year increase of 23%. Among them, the new installed capacity of photovoltaics in May was 19.04GW, a year-on-year increase of 32%. As of the end of May, the national installed capacity of solar power generation was approximately 690 million kilowatts, a year-on-year increase of 52.2%.
In addition to JegnJiaWeiChuang, another photovoltaic equipment supplier, wuxi autowell technology co., ltd. (688516.SH), has recently released a performance forecast. It is expected that the operating income for the first half of this year will be RMB 3.999 billion to RMB 4.451 billion, a year-on-year increase of 58.84% to 76.80%. The net profit attributable to the parent company's shareholders is expected to be RMB 692 million to RMB 772 million, a year-on-year increase of 32.53% to 47.82%.
During the previous investor relations event, JegnJiaWeiChuang expressed a cautious and optimistic attitude towards the current situation in the photovoltaic industry. The company believes that with the continuous growth of photovoltaic demand and the technological iteration of p-type to n-type, photovoltaic companies are prompted to quickly expand the production of high-quality capacity of n-type batteries, and the short-term supply-demand ratio has increased and competition has intensified. However, in the long run, backward and high-cost production capacity will be gradually eliminated under this competitive situation. Moreover, the temporary oversupply of capacity will help reduce the cost of electricity generation and promote cost reduction and efficiency improvement, bringing greater stimulation to industry demand.
JegnJiaWeiChuang stated that the company's current orders are all being executed normally. The first quarter orders were mainly the transformation from p-type to n-type, and the second quarter was mainly for new TOPCon orders, which exceeded expectations. TOPCon still has cost advantages, although HJT has relatively high costs, it will be a sales direction for markets such as Europe and the United States that are not very price sensitive. The future photovoltaic market may be a market with multiple technology routes such as TOPCon, HJT, and BC. The company has arranged equipment for various technology routes to meet the diversified needs of downstream customers.
However, in the previous quarterly report, JegnJiaWeiChuang's net cash flow from operating activities in the first quarter of this year turned negative, reaching -RMB 132 million. The company explained that the company's receipts are divided into advance payments for newly signed orders and acceptance of equipment payments. Last year, due to a significant increase in newly signed orders and business expansion, prepaid goods and payment for purchased goods both witnessed significant growth. The net negative cash flow from operating activities in the first quarter of this year was mainly due to the increase in payment for purchased raw materials.
The company also proposed that now the vast majority of the company's orders are for TOPCon, and in terms of customer structure, head enterprises dominate, with smaller risks of payment. Currently, the company can receive about 60% of the equipment payment before shipment to reduce the risk of collection.