According to Wind statistics, 35 of all 58 A-share listed companies have disclosed their 2010 performance forecasts, of which 32 listed companies are expected to increase year-on-year, accounting for 91.4% of the total. Among them, Dagang shares (002077) with single crystal silicon rods and silicon wafers are expected to have a net profit of 58 million to 63 million yuan in 2010, a 21-fold year-on-year increase, and the expected net profit of PV downstream leading variety shares (600770). With a substantial increase of 7 times, Jinggong Technology (002006), a key photovoltaic equipment supplier of polycrystalline ingot furnaces, expects net profit to reach approximately RMB 88-95 million, which is an increase of 2.8-3.1 times year-on-year. The three companies listed above ranked the top three in terms of growth in 2010.

Big increase in performance stimulates expansion of production boom

Wind statistics show that listed companies with photovoltaic "sweeping" have ushered in a surge in performance. Among them, there are 14 photovoltaic listed companies whose performance has doubled in 2010, accounting for 44% of similar rising companies. In addition, there are four listed companies that have achieved losses. Among them, China Central (002129) expects to achieve a net profit of 90 million yuan to 100 million yuan in 2010.

Photovoltaic companies that produce polysilicon, silicon wafers, batteries and battery modules directly benefit from the aforementioned sharp increase in the demand for photovoltaic products and the rise in price, which has ushered in a surge in performance. For example, Hengdian Dongjing (002056) of photovoltaic cells and battery modules expects net profit to increase by 130%-160%; Tuoxinengeng (002218), which is a photovoltaic battery project, expects net profit to increase by 150%-180%. The Silicon Valley (600206), which specializes in single-crystal wafer business, has achieved losses in 2010 and expects a net profit of about 5 million yuan.

In addition, the performance of upstream equipment and consumables manufacturers in the photovoltaic industry has generally grown significantly. For example, Jinggong Technology's main benefit of equipment orders for polycrystalline ingot furnaces is expected to triple its net profit in 2010. Jinjing Technology (600586), which produces ultra-white glass for key components of photovoltaic modules, expects its net profit to increase by more than 200%; The industry's production of cutting edge materials Xindaxin material (300080) is expected to increase net profit by 40%-90%; CSG A (000012), which enters the entire photovoltaic industry chain, is expected to have a net profit of 1.46 billion yuan, a year-on-year increase of 75%.

Under the background of “giving strength” to the industry with high growth performance, many photovoltaic companies set off an expansion boom. Oriental Sunrise plans to allocate 825 million yuan from the over-raised funds to expand the 300MW crystalline silicon solar cell production line, and its annual production capacity will be expanded from the planned 150MW to 450MW. CSG A decided not to issue more than 250 million A shares in non-public offerings. The total amount of funds raised shall not exceed 4 billion yuan for projects such as TCO membrane glass expansion, silicon wafer expansion, expansion of solar cells and modules, and energy-saving glass. In addition, there are a number of companies such as Aerospace and Electromechanical, Oriental Sunrise, and Aike shares have launched silicon wafers or battery projects. The situation of excess industry is imminent.

Both pressured or overdrawn this year

Compared with PV listed companies, which vie for huge investments in photovoltaic wafers, batteries, and component industries, there are not many listed companies that invest in polysilicon projects. Even if they invest, it will take more than a year due to the long production cycle of polysilicon projects. Time, and the production cycle of the battery module is short, a few months is enough.

Therefore, a large number of batteries and components that will be put into operation will increase the demand for polysilicon while exacerbating competition in the industry. Therefore, the price of polysilicon may rise again in stages, which will bring cost pressures to the photovoltaic downstream companies.

In addition, the decline of photovoltaic subsidies in Germany, Spain and other countries will also directly affect the growth of demand in the global photovoltaic market. At present, many professional agencies have significantly lowered their expectations for photovoltaic demand in 2011, and even some agencies may forecast negative growth in demand, which means that For many photovoltaic companies, the 2011 market is likely to have been overdrawn. Many people in charge of photovoltaic companies believe that there may be a partial surplus of photovoltaic production capacity, and product prices will drop significantly in 2011, which, to a certain extent, has hidden concerns for the performance of photovoltaic companies in 2011.

However, analysts believe that for the leading companies in the photovoltaic industry and most of the PV upstream equipment and consumables manufacturers, the economic prosperity in 2010 may be expected to continue, and the background for the shortage of supply of photovoltaic equipment and consumables is difficult to change rapidly.

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