协鑫科技：十年磨一剑，颗粒硅优势渐显

Investment Rating - The report initiates coverage with a "Buy" rating for the company [8][9]. Core Insights - The silicon material industry is showing signs of recovery with a recent increase in prices, and the company is expected to benefit from its cost leadership and recent financing efforts [2][8]. - The company has made significant advancements in granular silicon technology, achieving a cash cost of 33,180 RMB per ton by Q3 2024, which is expected to decrease further [6][8]. - The company has a strong focus on research and development, with R&D expenses amounting to 1.873 billion RMB in 2023, representing 5.6% of its revenue [25][27]. Summary by Sections Company Overview - The company, established in 2006, is a leading player in the photovoltaic materials sector, focusing on granular silicon, perovskite, and CCz technologies [4][13]. - The company is primarily owned by GCL Group, which holds a 23.77% stake, ensuring high synergy among its various business units [4][13]. Industry Context - The silicon material industry has reached a turning point, with inventory levels decreasing and prices beginning to rise, driven by recent market dynamics and the introduction of silicon futures [5][42]. - The company has transitioned fully to granular silicon, achieving a production capacity of 420,000 tons, capturing approximately 15% of the domestic market share [6][21]. Financial Performance - In 2023, the company reported revenues of 33.7 billion RMB, a 6.2% decline year-on-year, primarily due to a non-cash loss from the sale of a subsidiary [22][24]. - The company’s multi-crystalline silicon sales reached 22.61 million tons in 2023, a 141% increase from the previous year [21][22]. Research and Development - The company has actively participated in setting industry standards, with 78 standards established from 2013 to 2023, including 9 international SEMI standards [25][27]. - The company plans to enhance its financial position through a share placement and potential convertible bond issuance, aiming to raise approximately 15.6 billion HKD [27][29]. Market Outlook - The report indicates that the silicon material prices are expected to gradually recover to reasonable levels, supported by industry self-discipline and favorable domestic policies [42][44]. - The company’s cost advantages and recent financing are expected to help it navigate through market cycles effectively [2][8].