合盛硅业20250605

Summary of the Conference Call for 合盛硅业 Company Overview - Company: 合盛硅业 (Hesheng Silicon Industry) - Industry: Silicon and photovoltaic materials Key Points and Arguments Industrial Silicon Business - The industrial silicon business is influenced by the operating rates in the southwestern region during the flood season, limiting short-term price increases. The annual production target for industrial silicon is set at 1.6 million tons, with approximately 1 million tons for external sales and stable self-use levels [2][7] - The company has a cost advantage in industrial silicon, with cash costs below 8,000 RMB/ton. The self-supply ratio of quartz stone is expected to increase from 50% to 70%-80% this year, significantly reducing procurement costs [2][10][15] - The company has started small-scale production of 8-inch silicon carbide products, with sales revenue of approximately 50 million RMB last year and a production plan of 50,000 pieces this year [3][25] Polysilicon Production - The polysilicon facility will undergo maintenance and technical upgrades after stable operation of 50,000 tons in 2024, aiming to reduce cash costs to 35,000 RMB/ton [2][19] - The company has begun a 5G production line for components and initiated the first furnace for photovoltaic glass, although capacity utilization is currently low due to industry-wide conditions [2][5] Market Dynamics - The overall operating rate in the organic silicon market is stable, with prices remaining steady. The market's confidence has improved following the confirmation of tariffs, and demand is expected to remain stable [2][12] - The organic silicon industry is projected to maintain double-digit growth in 2025, despite a price decline in April and May due to tariff impacts [2][13] Financial Performance - The company has experienced a cash flow of approximately 1.9 billion RMB in Q1 2025, with a total cash position of around 2 billion RMB. Continuous efforts are being made for subsidiary capital increases and market refinancing [3][28] - The company anticipates annual depreciation of 800-900 million RMB, with a quarterly estimate of about 200 million RMB [3][23] Industry Trends - The industrial silicon price is currently at an irrational level, with supply and demand heavily influencing future price movements. The company expects more outdated capacity to exit or reduce production due to sustained low prices [4][6] - The polysilicon industry is facing a mismatch in supply and demand, with new capacity additions delayed. The overall market recovery is expected to take time [11][24] Project Developments - A 2.1 GW photovoltaic power station is expected to start supplying power by the end of Q4, with a construction cycle of six months. Additionally, a 3.8 MW wind power project is in the site selection phase [3][26] - The company plans to start the Yunnan industrial silicon project in the second half of the year, with a gradual ramp-up of about 50,000 tons [3][27] Additional Important Information - The company has made significant investments in photovoltaic and related projects, with planned expenditures of approximately 4 billion RMB in 2025 [3][19] - The company’s self-supply ratio of electricity has exceeded 50%, contributing to lower overall costs [15][16] - The impact of fluctuating petroleum coke prices on overall costs is limited, as electricity costs constitute a larger portion of production expenses [9]