Why is the current price of photovoltaic glass rising?
(1) The 14th Five-Year Photovoltaic Module maintained its growth.
The market expects that during the 14th Five-Year Plan period, the proportion of non-fossil energy consumption will reach the strategic target of 17.5% by 2025, and the installed capacity of photovoltaics will exceed expectations. Photovoltaic glass is the upstream raw material of photovoltaic modules and will also benefit.
(2) Double-sided components increased to 60%, the demand for photovoltaic glass increased significantly.
In addition, dual-sided components have proven to be economical, with an average power generation gain of 10% and an IRR increase of 2.5%. With the recognition of the power generation gain of the two-sided components at the downstream application end and the gradual optimization of the installation method, the application scale of the two-sided power generation components will continue to expand. Double-sided components will account for 14% in 2019, and the China Photovoltaic Industry Association expects to be close to 60% by 2025. The proportion of double-sided components has been greatly increased, driving the demand for upstream photovoltaic glass.
The price of photovoltaic glass: At the end of this year prices are expected to rise again.
(1) The four stages of the increase in the price of photovoltaic glass.
The share price in 2017 reflects its cyclical properties more, and the share price of 2017H2 began to rise significantly at the end of 2017 as the price of glass gradually rose;
After the release of the "531" policy in 2018, the share price of this sector has been adjusted as much as other companies in the industry, and the stock price adjustment has been before the bottom of the glass price;
In 2019, due to the strong overseas demand, but the glass production capacity is small, glass prices continue to open up the upward trend, until the first quarter of 2020, the two companies' share prices also showed an overall upward trend;
In March 2020, due to the severity of the overseas outbreak, the stock market as a whole rebounded sharply, and the share prices of Xinyi Guangn energy and Fleet glass also reflected the lower price of glass in advance. Glass prices than experienced three cuts, by 17 percent, in April and May, but the share price has steadied since May, largely reflecting a pick-up in demand expectations, before rising again as costs fell and glass prices rose.
(2) From falling prices to rising prices, the company's profit margin remains high.
Looking ahead to the end of this year, we do not rule out that glass prices will continue to rise in the fourth quarter due to strong demand, but will also be somewhat suppressed by the release of new production and cold repair production capacity.
If the price rises in August, it is estimated that the gross margin of leading manufacturers photovoltaic glass will recover to at least 35%.
