A director at Longi Green Energy Technology Co Ltd bought 2,003,000 shares at 16.310CNY and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over ...
Industry sentiment is improving with an installation rush expected in 1H25. The supply chain is still awaiting indication of a surge in demand and the finalisation of production schedules for downstream players in Mar 24. We remain cautious on the demand outlook after the installation rush, especially with slower new investments from SOEs. Solar module shipment volume is expected to slow to mid-teens growth in 2025, with the top four players further expanding their dominance. Maintain MARKET WEI...
Weekly spot prices remained stable ahead of the Chinese New Year holidays amid muted transactions. China achieved a record year for solar installations, reaching 277.17 GW (+27.8%). Global solar installations should see a milder growth starting in 2025, with rising protectionism further dampening the export outlook. The effectiveness of the industry’s self-discipline measures remains uncertain and industry consolidation could be a prolonged process. Maintain MARKET WEIGHT.
Longi reported 9M24 net attributable loss of Rmb6,505m (-155.6% yoy), in line with expectations. 2Q24 proved to be the worst quarter of the year as 3Q24 earnings rebounded by 56.4% qoq, thanks to a 2.0ppt qoq margin expansion, 25% qoq decline in administrative expenditure and 73.9% qoq decline in impairment loss. Ytd module shipments reached 51.2GW (+17.7% yoy), with BC module shipments reaching 13.8GW, further optimising sales mix. Maintain HOLD. Target price: Rmb19.30.
KEY HIGHLIGHTS Results ASMPT (522 HK/BUY/HK$87.00/Target: HK$104.50) ASMPT’s Semi solution business registered better-than-expected revenue and margins in 3Q24 thanks to robust advanced packaging demand, which led to a 10% beat vs our operating profit estimates, although reported net profit ended up below expectations due to forex loss. ASMPT will remain a key beneficiary of the AI investment trend, and we recommend accumulating after its recent share price correction. Maintain BUY. Target p...
Longi reported 1H24 net attributable loss of Rmb5,243.3m (-157.1% yoy), below expectations. Rmb5,784.3m in inventory write-down was recognised. External shipment volume for wafers/modules was 21.96GW/31.34GW (-4.4%/+18.3% yoy), a rather mild yoy growth. Longi stays committed to product differentiation, leveraging on their R&D capabilities. A healthy balance sheet with ample liquidity will enable Longi to survive the downcycle. Upgrade to HOLD. Target price: Rmb13.50.
KEY HIGHLIGHTS Results China Construction Bank (939 HK/BUY/HK$5.43/Target: HK$6.00) CCB’s 2Q24 earnings (-1.4% yoy) were slightly below our expectation. PPOP decreased 4.7% yoy due to larger NIM dilution and fee income decline, partly offset by strong trading income. Despite that, management guided that the deposit rate cut in July could fully offset the impact of LPR cuts, and NIM downward pressure will continue to ease in 2H24. Asset quality remains decent with flattish NPL ratio but press...
GREATER CHINA Results China Construction Bank (939 HK/BUY/HK$5.43/Target: HK$6.00): 2Q24: Earnings decline narrowed to 1.4% on strong trading income. China Merchants Bank. (3968 HK/BUY/HK$32.35/Target: HK$42.00): 1H24: Still waiting to thrive. China Tourism Group Duty Free (601888 CH/BUY/Rmb58.93/Target: Rmb83.40): 2Q24: Slight earnings miss; Hainan duty-free business under pressure; airport business recovery underway. Kingmed Diagnostics (603882 CH/BUY/Rmb25.66/Target: Rmb35.00): 1H24: Signific...
Impacts of overcapacity on China’s solar module supply chain continued to deepen, with spot prices free-falling across the supply chain last week. China installed 14.37GW of new solar PV capacity in Apr 24, with 4M24 cumulative installation reaching 671.47GW (+52.4% yoy). The export boom to Asia may not be sustainable with the reimplementation of ALMM in India from Apr 24. Potential trade war escalation remains a key concern along with a dimming module export outlook. Maintain UNDERWEIGHT.
Longi reported 2023 earnings of Rmb10,751.4m (-27.4% yoy), below expectations. The disappointment was mainly due to the recognition of a Rmb5.2b inventory write-down. 1Q24 gross margins declined to 8.9% given the slump in module prices. 2023 module shipment volume was 67.5GW, is expected to reach 90-100GW for 2024. Capacity expansion will slow down with wafer/battery/module capacity to hit 200GW/100GW/150GW in three years’ time. Downgrade to SELL. Target price: Rmb14.38.
KEY HIGHLIGHTS Economics PMI Manufacturing PMI came in better than expected at 50.4% (-0.4ppt) and stayed in the expansionary zone for the second month. It was mainly supported by production and new orders as employment remained a drag, dropping 0.1ppt to 48.0%. Non-manufacturing hit a three-month low of 51.2%, dragged by moderation in new orders and business expectations. We expect policy support to continue and the July Politburo may see new measures being rolled out. Sector Aviation T...
GREATER CHINA Sector Macau Gaming Apr 24 GGR down 5% mom; downgrade to MARKET WEIGHT. Results China Construction Bank (939 HK/BUY/HK$5.10/Target: HK$6.00) 1Q24: Results in line with better NIM performance. LONGi Green Energy Technology (601012 CH/SELL/Rmb18.20/Target: Rmb14.38) 2023/1Q24: Below expectations; inventory write-down wipes out earnings. Downgrade to SELL. PICC Property and Casualty (2328 HK/BUY/HK$9.71/Target: HK$11.70) 1Q24: Earnings miss on higher COR and lower investment income...
China’s solar annual installation hit a new high in 2023 at 216.88GW, equivalent to the total for the past four years. CEC expects solar and wind power generating capacity to reach 780GW and 530GW respectively in 2024, with a combined capacity of 1,300GW by end-24 and surpassing thermal power plants’ capacities for the first time. European module manufacturers are facing an existential threat and on the brink of bankruptcy, and are petitioning for government aid and more aggressive protective me...
Solar module prices are still under pressure amid the low season, but we see divergence of price performance between P- and N-type cell products as the industry is transitioning to N-type cells. Global module demand is expected to surpass 500GW in 2024 (up 10-20% yoy), and we should have clearer visibility of the strength of demand recovery after the CNY holidays. An acceleration in industry consolidation is likely to be the next re-rating catalyst, which should see industry leaders further expa...
The gradual commencement of new polysilicon production plants is likely to remove the lingering overhang of the solar module supply chain. Global solar module installation is expected to accelerate in 2023 (+31% yoy). China’s domination of the global solar module supply chain is set to persist through 2025. Vertical integration will likely raise entry barriers and accelerate industry consolidation. Initiate coverage on Longi with a BUY rating and target price of Rmb27.39.
KEY HIGHLIGHTS Sector Aviation Airlines’ Oct 23 operational data: Recovery continued at a moderate pace; overcapacity issue remains. Maintain UNDERWEIGHT. Initiate Coverage Longi Green Energy Technology (601012 CH/BUY/Rmb23.71/Target: Rmb27.39) Solar modules: China’s dominance to persist; riding on the installation boom. Results Alibaba Group (9988 HK/BUY/HK$81.35/Target: HK$115.00) 2QFY24: Strong AIDC growth; cloud distribution cancelled due to chip restrictions. Lenovo Group (992 HK/BUY/HK...
GREATER CHINA Sector Aviation: Airlines’ Oct 23 operational data: Recovery continued at a moderate pace; overcapacity issue remains. Maintain UNDERWEIGHT. Initiate Coverage Longi Green Energy Technology (601012 CH/BUY/Rmb23.71/Target: Rmb27.39): Solar modules: China’s dominance to persist; riding on the installation boom. Results Alibaba Group (9988 HK/BUY/HK$81.35/Target: HK$115.00): 2QFY24: Strong AIDC growth; cloud distribution cancelled due to chip restrictions. Lenovo Group (992 HK/BUY/HK$9...
The gradual commencement of new polysilicon production plants is likely to remove the lingering overhang of the solar module supply chain. Global solar module installation is expected to accelerate in 2023 (+31% yoy) with the removal of key constraints. China’s domination of the global solar module supply chain is set to persist through 2025, with its market share of upstream segments expected to hit 95%. Vertical integration will likely raise entry barriers and accelerate consolidation of the s...
The independent financial analyst theScreener just awarded an improved star rating to LONGI GREEN ENERGY T (CN), active in the Semiconductors industry. As regards its fundamental valuation, the title receives an improved star rating and now shows 4 out of 4 possible stars. With regard to its market behaviour, it remains unchanged and can be qualified as risky. theScreener considers that these elements allow slightly upgrading its rating to Neutral. As of the analysis date March 1, 2022, the clos...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
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