TONGWEI CO.,LTD(SH:600438) Zheng Quan Shi Bao Wang·2025-05-20 13:24Core Viewpoint - The photovoltaic industry is currently experiencing a phase of pain, but companies with core technology and strong cost control will see improvement by spring 2025 [1][4][5]. Industry Overview - In 2024, the photovoltaic industry faced significant challenges, with over 60 listed companies reporting total revenue of 931.1 billion yuan, a decrease of 22.4% year-on-year, and a total net loss of 29.8 billion yuan [4]. - The industry is characterized by a mismatch in supply and demand due to excessive capacity from previous investments, leading to a "winter" period for many companies [4][5]. - The price of photovoltaic components has dropped significantly, with costs falling from 2 yuan/W to 0.6-0.7 yuan/W, resulting in the potential elimination of older, high-cost production capacities by the end of the year [4]. Company Performance - Tongwei Co., Ltd. reported sufficient cash flow and is committed to unlimited R&D investment to enhance battery efficiency [5]. - As of the end of Q1 2024, the company had approximately 40 billion yuan in cash and financial assets, with bank credit exceeding 140 billion yuan [5]. Silicon Material Capacity Integration - Tongwei has established a high-purity crystalline silicon production capacity exceeding 900,000 tons, while other major players have a combined capacity of around 1.98 million tons [6]. - The industry demand for silicon materials is estimated to be between 1.5 million to 1.6 million tons, making the resolution of oversupply a critical factor for improving industry conditions [7]. Market Dynamics - There are no current signs of photovoltaic manufacturing returning to Europe and the U.S., as overseas companies cannot compete with Chinese manufacturing costs [9][10]. - Tongwei's overseas revenue reached 9.45 billion yuan in 2024, with a notable 98.76% year-on-year increase in overseas sales, supported by enhanced distribution networks and product certifications [11].