major shareholders, Trina Solar collapsed with the photovoltaic plate. On Saturday,
May 27, Trina Solar issued the Announcement on the Share Reduction Plan of Shareholders Holding More than 5% of the Shares, which disclosed that the shareholders of the company, Xingyin Growth Capital Management Co., Ltd. The former intends to reduce its holdings by no more than 5.23% of Trina Solar's total equity, about 114 million shares, while the latter intends to reduce its holdings by no more than 0.42% of Trina Solar's total equity, that is, 921.
According to the stock price estimates on the first trading day after the announcement, the two major shareholders are expected to cash in nearly 5 billion yuan. It is worth mentioning that both companies belong to Huafu Department. According to public information, Xingyin Capital is a 100% wholly-owned holding subsidiary of Huafu Securities and a private equity fund subsidiary manager of Huafu Securities, while Xingjing Investment is a holding subsidiary of Xingyin Capital and a private equity fund manager. After the news of the
reduction came out, there was a wail in the stock bar. Sure enough, Trina Solar's share price plunged 16.34% on Monday, May 29, to close at 40.
In fact, this is not the first time that Huafu funds have reduced their holdings of Trina Solar. On November 1, 2022, Trina Solar disclosed the results of the reduction announcement, Xingyin Capital and Xingjing Investment reduced their shares by 56.4682 million shares through bulk trading, accounting for 2.61% of the company's total equity at that time, and the reduction price range was 54.90 yuan/share-76.85 yuan/share. The total amount of cash reached 34.
Major shareholders reduced their holdings by 8 billion yuan twice, but other investors of Trina Solar suffered. Since the beginning of the year (May 31), Trina Solar has fallen by more than 38%. After the reduction of major shareholders, a number of star fund managers and retail investors who increased their positions in the company in the first quarter were trapped together.
Perhaps in order to stabilize market expectations and confidence, after the reduction, Trina Solar announced that the company intends to repurchase a shares issued with a total amount of not less than RMB 65 yuan per share (including) and not less than RMB 300 million yuan (including) and not more than RMB 600 million yuan (including). The repurchased shares will be used for employee stock ownership plans or equity incentives at an appropriate time in the future, and will be transferred within three years after the announcement of the results of the implementation of the share repurchase and the change of shares.
Can Trina Solar's active repurchase boost investor confidence? Does this photovoltaic module leader still have investment value?
Upward Performance and Reduction of Major Shareholders: Good?
At that time, Trina Solar, which had withdrawn from the US stock market, had been seeking A-share listing to regain access to financing channels to develop its business.
To this end, Changzhou Trina Solar Energy Co., Ltd., the predecessor of Trina Solar Energy, has introduced a number of investors such as Panji Investment, Xingyin Capital and Xingjing Investment. Among them, Xingyin Capital contributed USD 287 million, and Xingjing Capital contributed USD 1. (Transferred part of the equity before listing, and the transferee included the company held by Gao Jifan's family.) In June
2020, Trina Solar was able to land on Kechuang Board as expected. In the following three years, the company benefited from " on the one hand. According to the latest annual report, Trina Solar's revenue and net profit reached a record high in 2022. In 2022, the operating income is RMB 85.052 billion, with a year-on-year increase of 91.21%; the net profit is RMB 3.68 billion, with a year-on-year increase of 103.97%; The non-net profit deducted was 3.465 billion yuan.
Source: Trina Solar's official
absolute core business PV module shipments in 2022 were 43.
Is this the rhythm of good news? According to the statistics of Shanghai Stock Exchange, according to the latest market value, the market value of a shares lifted in June will be as high as 700 billion yuan, the largest month in the past two years.
These two negative factors have directly or indirectly promoted the intensive and large-scale reduction of major shareholders. So, is Trina Solar, whose stock price has plummeted, now "out of bad news"?
At the recent 16th International Solar Photovoltaic and Smart Energy Exhibition (SNEC), Gao Jifan, chairman of Trina Solar, said that with the rapid development of the industry, challenges also follow.
First of all, there are worries about overcapacity.
In the past two years, under the stimulation of the "double carbon" policy, more and more enterprises are moving towards "light". This year, more than 3100 enterprises attended the SNEC photovoltaic exhibition.
However, at the annual meeting of China's photovoltaic industry at the end of last year, Wang Bohua, honorary chairman of China Photovoltaic Industry Association, pointed out that there is still great uncertainty about whether the expansion project of photovoltaic industry chain can be finally implemented, and for cross-border enterprises entering the manufacturing side, the challenges mainly come from the possibility of low-level duplicate construction in the industry. There is a risk of overcapacity in some links.
In this regard, Gao Jifan also pointed out that the cumulative installed capacity of photovoltaic and wind power in China is expected to increase rapidly. In 2025, the power grid will face a great challenge to solve the problem of system balance and stability, and it is necessary to speed up the construction of a new power system adapted to the rapid increase in the proportion of new energy, otherwise photovoltaic will fall into the dilemma of sustainable development.
Secondly, it is the industry clearing brought by technology iteration.
New materials, new technologies and new equipment are constantly emerging, and the technology of photovoltaic industry is changing with each passing day. For example, Dr. Chen Yifeng, Assistant Vice President of Trina Solar Energy Technology, quoted PVinfolink data as saying that the investment and capacity of N-type technology in China are expected to reach more than 50% for the first time this year, and the new capacity of N-type technology will exceed that of P-type technology for the first time.
China's photovoltaic industry is already a trillion track. According to the data disclosed by Trina Solar at the SNEC Photovoltaic Exhibition, the total output value of the main photovoltaic industry in 2022 will exceed 1.4 trillion yuan; if auxiliary materials and equipment are added, the total output value will exceed 2.2 trillion yuan; By the end of 2022, the total market value of 138 photovoltaic listed companies is as high as 3.
In such a huge track, in the process of technology iteration, a number of enterprises with insufficient R & D investment and weak technological innovation ability will inevitably be eliminated, which may also affect the overall valuation of the photovoltaic sector.
Finally, the uncertainty of the international environment leads to fluctuations in raw material prices and demand fluctuations in the downstream market.
On the one hand, the export of Chinese photovoltaic enterprises may be affected by the international trade environment. According to the data of China Photovoltaic Industry Association, the total export volume of photovoltaic products (silicon wafers, cells and modules) in China in 2022 is about 51.25 billion US dollars, an increase of 80% over the same period last year.
On the other hand, photovoltaic products are based on silicon materials, and the price of silicon materials has been rising in recent years, which may bring cost pressure to photovoltaic enterprises.
However, Trina Solar is prepared to deal with the cost problem. Dr. Chen Yifeng said that Trina Solar has a corresponding strategy for this, including signing a series of strategic cooperation agreements with partners, and promoting thin batteries, such as P-type up to 145 microns, N-type up to 130 microns or even lower, in order to resist the impact of silicon prices on costs.
However, the price of the downstream market may still affect the performance of photovoltaic enterprises. With the promotion of photovoltaic grid parity in various countries, the price of photovoltaic modules continues to decline is an inevitable trend. At present, there is still room for the production cost and sales price of each link to decline, which may lead to the fluctuation of gross profit margin of Trina Solar photovoltaic module business.
In short, although the overall performance of Trina Solar is still growing, the challenges in the future are still not small. Especially after two major shareholder reductions, investor confidence has suffered a blow, and it remains to be seen when its share price will reverse its decline.
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