Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 1.54, representing a potential upside of 35% from the current price [2][4]. Core Insights - The company's revenue for the first half of the year decreased by 57.7% year-on-year to RMB 8.86 billion, with a gross loss of RMB 550 million, primarily due to a 68% drop in silicon material prices and an inventory impairment of RMB 820 million [2]. - The company sold 126,000 tons of granular silicon in the first half, a 25% increase year-on-year, with silicon material revenue of RMB 4.86 billion and an average price of RMB 40.3 per kilogram [2]. - The company is expected to further reduce costs, with cash costs for granular silicon projected to fall below RMB 30 per kilogram after the completion of upgrades at its four major bases [2]. Financial Summary - Total revenue for 2022 was RMB 35.93 billion, with a projected decline to RMB 17.00 billion in 2024, followed by a recovery to RMB 31.15 billion in 2026 [5][6]. - Shareholder net profit is expected to be negative RMB 2.25 billion in 2024, with a recovery to RMB 2.71 billion in 2026 [5][6]. - The company’s net profit margin is projected to improve from -18% in 2024 to 10% in 2026 [6]. Production and Quality Improvement - The company has achieved significant improvements in the quality of granular silicon, with 95% of products meeting the stringent impurity standards [2]. - The company’s major clients accounted for 62.2% of total shipments in the first half, indicating strong demand and potential for increased market share [2]. Market Outlook - The report anticipates that the silicon material prices will stabilize, and the company is expected to recover cash profitability ahead of the industry [2]. - The long-term outlook remains positive due to the company's ability to enhance production capacity and maintain a competitive edge in the low-carbon segment [2].

Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company's performance has shifted from profit to loss primarily due to oversupply in the polysilicon market and intensified competition leading to prices falling below cash costs [2]. - The company has shown steady growth in polysilicon production and sales, with a significant increase in production by 22.8% year-on-year and sales by 24.99% year-on-year [2]. - The quality of the company's products has improved, with a notable reduction in metal impurities and turbidity levels, positioning it as a leader in the industry [2]. - New business opportunities in perovskite and silane gas are expected to contribute to future revenue growth [2]. - Revenue projections for 2024-2026 are estimated at 18.1 billion, 33.7 billion, and 40.4 billion RMB, with net profits expected to recover in 2025 and 2026 [2]. Financial Forecasts and Indicators - For the first half of 2024, the company reported revenues of 9.352 billion RMB, a decrease of 56.04% year-on-year, and a net loss of 1.48 billion RMB, down 126.81% year-on-year [2]. - The company anticipates a reduction in cash costs for granular silicon to below 30 RMB/kg [2]. - The projected net profits for 2024, 2025, and 2026 are -2.375 billion, 1.237 billion, and 2.341 billion RMB respectively, with corresponding P/E ratios of 23x and 12x for 2025 and 2026 [2]. - The company’s total assets are reported at 82.768 billion RMB, with total liabilities of 34.450 billion RMB, indicating a healthy balance sheet [7].

Investment Rating - The investment rating for the company is Neutral, with a target price of HKD 1.31, representing a potential upside of 12.9% from the current price of HKD 1.16 [1][2][18]. Core Insights - The company's performance in the first half of the year was below expectations, with a net loss attributable to shareholders of RMB 1.48 billion, slightly exceeding the forecasted loss of RMB 1.45 billion. The second quarter loss was RMB 1.51 billion, which was lower than anticipated [1]. - The production optimization of granular silicon is expected to significantly reduce costs after completion, with cash costs projected to fall below RMB 30,000 per ton by the end of the year, which is substantially lower than the approximately RMB 40,000 per ton of leading competitors [1]. - The company has initiated a systematic optimization project for its granular silicon production line, which, despite causing a temporary decrease in operating rates, has led to substantial improvements in production metrics [1]. - The company holds the largest global capacity for silane gas, with sales accounting for one-third of the national market, and is expected to become a new profit growth point as demand increases [1][2]. Financial Summary - The company reported a revenue of RMB 35.93 billion in 2022, which is expected to decline to RMB 33.7 billion in 2023, and further drop to RMB 16.97 billion in 2024, reflecting a year-on-year decrease of 49.7% [5][19]. - The net profit is projected to be a loss of RMB 1.91 billion in 2024, with a gradual recovery expected in subsequent years, reaching a profit of RMB 2.63 billion by 2026 [5][19]. - The average selling price per ton of granular silicon is expected to decrease significantly from RMB 24,400 in 2022 to RMB 4,100 in 2024, with production costs also declining from RMB 5,400 to RMB 3,800 per ton over the same period [7][19]. Market Dynamics - The price of polysilicon has stabilized after a significant drop, with prices for dense material and granular silicon per ton falling from RMB 68,000 and RMB 61,000 to a low of RMB 39,000 and RMB 36,000 respectively. The market is now approaching a balance between supply and demand [2]. - The company is expected to benefit from its cost advantages and improve its market share, although valuation improvements are contingent on a significant recovery in polysilicon prices [2][8].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 8,862.9 million, a decrease of 57.7% compared to RMB 20,945.9 million in the same period of 2023[3] - Gross loss for the period was RMB (552.6) million, compared to a gross profit of RMB 8,777.9 million in the previous year, representing a decline of 106.3%[3] - Loss attributable to owners of the company was RMB (1,479.6) million, a significant drop of 126.8% from RMB 5,518.3 million profit in the prior year[3] - Basic and diluted loss per share was RMB (5.60) cents, compared to earnings of RMB 20.79 cents per share in the same period last year[3] - The company reported a net loss of RMB (2,021.4) million for the period, compared to a profit of RMB 6,245.1 million in the same period last year[6] - Other comprehensive loss for the period totaled RMB (37.6) million, compared to a gain of RMB 120.1 million in the previous year[6] - For the six months ended June 30, 2024, total revenue from external customers was RMB 8,862,876 thousand, a decrease of 57.6% compared to RMB 20,945,903 thousand for the same period in 2023[25][27] - The photovoltaic materials segment reported a loss of RMB (2,026,865) thousand for the first half of 2024, compared to a profit of RMB 6,230,194 thousand in the same period of 2023[25][27] - The company recognized a net loss of RMB (2,021,415) thousand for the six months ended June 30, 2024, compared to a profit of RMB 6,245,135 thousand for the same period in 2023[25][27] - The overall gross margin turned negative at -6.2% for the six months ended June 30, 2024, compared to a gross margin of 41.9% for the same period in 2023[88] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 78,702.3 million, a decrease from RMB 82,999.6 million as of December 31, 2023[8] - Current liabilities decreased to RMB 21,568.1 million from RMB 22,138.9 million at the end of 2023[9] - Net current assets were RMB 7,701.9 million, down from RMB 12,552.4 million at the end of the previous year[9] - Total equity attributable to owners of the company was RMB 41,140.4 million, a decrease from RMB 42,587.0 million as of December 31, 2023[9] - The company’s total liabilities for trade payables as of June 30, 2024, were RMB 4,119,066,000, down from RMB 5,252,202,000 as of December 31, 2023, indicating a reduction of about 21.5%[48] - The group’s total debt increased to RMB 17.95 billion as of June 30, 2024, compared to RMB 15.94 billion as of December 31, 2023[108] - The net debt increased to RMB 10.1 billion as of June 30, 2024, compared to RMB 6.8 billion as of December 31, 2023, reflecting a net debt to equity ratio of 24.6%[110] Segment Performance - The photovoltaic power station business operates in the United States and China, contributing to the company's overall performance[24] - Revenue from the photovoltaic materials segment for the first half of 2024 included RMB 4,861,805 thousand from polysilicon sales, down from RMB 11,118,475 thousand in the same period of 2023, a decrease of 56.3%[31][33] - The photovoltaic power station business generated revenue of approximately RMB 95 million for the six months ended June 30, 2024, down from RMB 110 million in 2023[84] - The gross margin for the photovoltaic power station business was 31.2% for the six months ended June 30, 2024, a decrease of 17.6% compared to the same period in 2023[88] Research and Development - Research and development expenses decreased to RMB 718,314 thousand in 2024 from RMB 901,984 thousand in 2023, reflecting a reduction of approximately 20.3%[34] - Research and development expenses accounted for over 8% of revenue, reflecting a year-on-year increase of 3.8 percentage points, strengthening the company's competitive edge[55] - The company has filed for 65 patents in the first half of the year, including 16 invention patents, enhancing its intellectual property protection[55] Corporate Governance and Compliance - The financial statements are prepared in accordance with the International Financial Reporting Standards, ensuring compliance and transparency[12] - The company has not early adopted any new international financial reporting standards that are not yet mandatory for the current accounting period[20] - The financial reports are presented in Renminbi, aligning with the company's functional currency[11] - The external auditor and the audit committee reviewed the unaudited interim consolidated financial statements for the six months ending June 30, 2024, with no objections to the accounting policies adopted[129] - The company has complied with the corporate governance code as per the listing rules during the six months ending June 30, 2024[127] Future Outlook and Strategy - The company plans to fully exit high-cost rod silicon production and shift limited capacity towards higher-margin granular silicon to maximize profits[34] - The company aims for a long-term efficiency target of 35%-40% by leveraging its core technologies of granular silicon and perovskite[58] - The company anticipates that the total demand for silane gas in China will rise to 40,000 tons by 2025, with a market size exceeding RMB 3 billion[58] - The company plans to extend its silicon-based industrial chain vertically into upstream industrial silicon, leveraging high quality and low-cost advantages[56] - The company is actively participating in the integrated layout of solar energy storage and hydrogen production, aiming to expand downstream profit margins[56] Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2024, compared to a dividend of RMB 1,439,723,000 for the same period in 2023[37] - The company did not recommend an interim dividend for the six months ending June 30, 2024, consistent with the previous year[126] - The company repurchased a total of 18,112,000 shares at a total cost of approximately HKD 24 million during the six months ending June 30, 2024[128] Miscellaneous - The company has secured long-term procurement contracts with major clients extending to 2027, indicating strong market demand[54] - The company’s cash flow remains healthy, ensuring financial stability amidst industry challenges[81] - There were no significant post-reporting period events or business developments[123] - The company reported no significant contingent liabilities as of June 30, 2024, and December 31, 2023[121] - There were no major acquisitions or sales during the six-month period ending June 30, 2024[122]

颗粒硅优势明显,低碳引领新周期 2024 年 06 月 27 日 [Table_ 【投资要点 Summary]】 颗粒硅生产工艺简洁、转化率高、能耗低,具备陡峭的品控降本学习 曲线和较高的壁垒,下游产品适配需要研发驱动。在行业进入比拼资 金实力、成本竞争力和绿色属性的阶段,颗粒硅降本、提质和低碳优 势逐步扩大,协鑫科技有望在成本、品质和低碳减排方面引领行业。 颗粒硅降本:利用率提升,一体化和研发降本。1)生产成本:提高 单模块产能、连续运行时长、产能利用率,进而摊薄固定成本。单模 块产能提升至 6 万吨,单位投资成本再降 30%。G6 长周期、低成本新 一代循环流化床技术开发,连续运行时间中短期目标 5000h,长期目 标 8000h,产能利用率有望提升。2)现金成本:上游工业硅余热蒸汽 利用,吨现金成本有望由 2.8 万元降低至 2.4 万元。3)使用成本: 核心辅材研发与工艺优化,下游客户 CCZ 拉晶等方案匹配,非硅成本 可下降 19%。 颗粒硅提质:杂质降低,浊度改善,价差收窄。1)杂质含量:5 元素 总金属杂质含量≤1ppbw 稳定在 90%左右,少子寿命略高于致密块料, 头尾氧含量与致密料持平,满 ...

Investment Rating - The investment rating for the company is downgraded to Neutral from Buy [2] Core Views - The company is expected to face significant short-term profit pressure due to a sharp decline in polysilicon and silicon wafer prices, with an estimated loss of approximately 200 million RMB in Q2 [2] - The company's production capacity utilization for granular silicon has improved to 80-90%, with expectations to reach full production in Q3, which may reduce costs below 40,000 RMB per ton [2] - A long-term sales agreement with leading silicon wafer manufacturer Longi has been signed, indicating strong industry recognition of the company's granular silicon quality [2] - The report anticipates a recovery in polysilicon prices in Q3 after a significant decline, suggesting that the current severe losses in the industry may not be sustainable [2] Financial Summary - Revenue projections for the company show a decline from 35,930 million RMB in 2022 to an estimated 22,865 million RMB in 2024, with a subsequent recovery to 31,965 million RMB by 2026 [4][8] - Net profit is expected to drop sharply from 16,394 million RMB in 2022 to 236 million RMB in 2024, before recovering to 3,345 million RMB in 2026 [4][8] - The gross margin is projected to decrease significantly from 75.0% in 2022 to 14.7% in 2024, with a gradual improvement to 30.1% by 2026 [5][8] Valuation - The valuation for the polysilicon business is set at 355 billion RMB, while new businesses such as perovskite and silane gas are valued at 50 billion RMB, leading to a total valuation of 405 billion RMB [6] - The target price for the company's stock is adjusted to 1.62 HKD from the previous 1.67 HKD, reflecting the recent stock price increase and limited short-term valuation attractiveness [2][6]

协鑫科技(3800) 公司研究/公司点评 证 与阿联酋主权基金合作，颗粒硅出海在即 券 研 究 报 ◼ 核心观点 告 买入( 维持) 6月3日，公司发布公告，于2024年5月，公司全资附属公司协鑫苏州 与Mubadala（阿联酋主权基金）全资附属公司MDC POWER订立合作协 公 议，内容有关MDC POWER与协鑫苏州探讨合作以开发阿联酋首个多晶 行业： 电力设备 司 硅生产设施合作项目。根据合作协议，公司将会就合作项目持续与 日期： y 20x2z4q年da0te6m月a0r5k日 研 Mubadala展开讨论，并就合作项目签订具备法律效力的投资协议。 究 分析师： 开文明 阿联酋大力支持可再生能源发展。根据中国经济网数据，阿联酋政府7月 出台的《国家能源战略 2050 更新》，2030 年清洁能源在总能源结构中的 E-mail： kaiwenming@yongxin 份额将提高到30%，阿联酋政府在能源领域投资未来7年将增加1500亿 gsec.com 至2000亿迪拉姆（约合400亿至540亿美元），可再生能源装机容量增加 SAC编号： S1760523070002 两倍以上，达到 14.2 吉瓦。 ...

Investment Rating - The report assigns an "Outperform" rating to the company [1]. Core Insights - GCL-Poly Energy Holdings Limited is a leading player in the photovoltaic materials industry, focusing on innovative technologies such as granular silicon and perovskite, which enhance product quality and reduce costs [4][5]. - The company has achieved significant advancements in granular silicon production, with a target capacity increase to 500,000 tons by the end of 2024, and has improved product purity levels [4]. - GCL-Poly is also advancing in the CCz technology, which utilizes high-quality granular silicon to produce superior single crystal silicon rods, thereby reducing non-silicon costs in the crystal pulling process [4]. - The establishment of a 2GW perovskite production line in Kunshan is expected to enhance the company's competitive edge in the industry [5]. - Financial forecasts indicate a decline in revenue for 2024, followed by a recovery in subsequent years, with projected revenues of 27,003 million, 32,361 million, and 39,755 million for 2024, 2025, and 2026 respectively [6][10]. Summary by Sections Investment Information - The stock closed at HKD 1.46 with a market capitalization of HKD 34,074 million [1]. Financial Performance - The company reported a significant drop in net profit for 2023, with a forecasted net profit of 2,510 million for 2024, down from 16,030 million in 2022 [6][10]. - Revenue for 2023 was 33,700 million, with a projected decrease of 19.9% for 2024 [6][10]. Business Segmentation - The photovoltaic materials segment is expected to generate revenues of 26,790 million, 32,150 million, and 39,540 million for 2024, 2025, and 2026 respectively, with a declining gross margin [7][8]. - The photovoltaic power station business is projected to maintain stable revenues with a gross margin of 45% [7]. Valuation Metrics - The report suggests a price-to-book (PB) ratio of 0.9-1.0 for 2024, indicating a fair value range of HKD 1.58-1.76 [5][9].

协鑫科技（03800） 更新报告 买入 2024年05月22日 有望以颗粒硅成本优势率先走出行业底部 黄佳杰  降价与减值影响业绩：2023 年全年收入 337 亿元，同比减少 6.2%，毛 利率同比下降 14ppts 至 34.7%，股东净利同比下降 84.7%至 25.1 亿元； + 852-25321599 利润端下滑主要因为硅料和硅片价格的大幅下降以及部分项目出表的减值 harry.huang@firstshanghai.com.hk 影 响等。2024Q1 业绩依然承压，股东利润 0.33 亿元，同比大幅下降。主 陈晓霞 要是受（1）硅料及硅片均价同比下降影响（Q1 硅料均价（含税）55 元每 公斤，同比下降近 70%），硅片业务亏损：（2）近期呼和浩特新产能爬坡 + 852-25321956 影 响降本：（3）24Q1 研发费用保持较高影响。公司公布 2024-26 年股东 xx.chen@firstshanghai.com.hk 回报方案，计划三年内进行不低于26亿元的股份回购或分红。  产能爬坡及工艺稳步提升：公司实现颗粒硅产能和产出的大幅增长，截 主要资料 止 2023 年底有效产能达到 ...

Summary of Conference Call Transcript Company and Industry - The discussion revolves around the silicon wafer business and related materials, indicating a focus on the semiconductor industry. Core Points and Arguments - The company reported a low profit primarily due to a significant loss in the silicon wafer business, amounting to approximately 100 million RMB in the first quarter [1] - Additionally, there was an inventory impairment recorded for silicon materials, totaling around 50 million RMB, contributing to the overall financial challenges [1] - The combined impact of these two factors resulted in a total loss of 150 million RMB, which significantly affected the company's profitability in the first quarter [1] Other Important but Possibly Overlooked Content - The financial difficulties highlighted may indicate broader challenges within the semiconductor industry, particularly in the silicon supply chain [1]