2021-04-12
After the surge in new installed capacity in 2020, photovoltaics play an increasingly important role in renewable energy, and photovoltaic companies have also become the focus of attention from all walks of life.
However, recently, Xi’an Longi Green Energy Venture Capital Management Co., Ltd. and Shanghai Zhuqueying Private Equity Investment Fund Partnership (Limited Partnership) jointly funded the establishment of Xi’an Longi Hydrogen Technology Co., Ltd., each holding 60% and 40% of the shares respectively. The registered capital is 300 million yuan, which marks Longi’s formal entry into hydrogen energy.
LONGi Hydrogen is personally led by Mr. Li Zhenguo, the founder of LONGi Co., as the legal person, chairman and general manager of Longji Hydrogen. It can be seen that Longi Group attaches great importance to Longi Hydrogen Energy.
Although both photovoltaic and hydrogen energy are clean energy sources, the connection between the two is not close. Just like roads and railways are both modes of transportation, their respective operating mechanisms are quite different. Longi’s entry into hydrogen energy is already Cross-industry.
In fact, the entry of hydrogen energy is not the first time that the photovoltaic leader Longi shares has crossed the industry. Not long ago, on March 4, Longi issued a reminder announcement on the agreement to transfer part of the equity of Sente. It is announced that Longi will acquire 27.25% of Sente’s shares in cash by means of an agreement transfer. The total consideration for this transaction is 1.635 billion yuan. After the completion of the transaction, Longi will become the second-largest shareholder of Sente.
According to the data, Sente is the industry’s leading integrated service provider for building metal enclosure systems. Its main products include metal composite curtain wall panels, metal roof single-layer panels (aluminum-magnesium-manganese alloy panels, plated paint panels) and partitions. Acoustic barrier panels have now formed two major business segments, metal enclosure systems and noise control systems, and their products are widely used in industrial buildings, public buildings and traffic engineering.
It can be seen that there is no strong connection between Sente and Longi’s main business, photovoltaics. In the past four months in 2021, Longi, the world’s most valuable photovoltaic company, has carried out two cross-industry deployments. Of course, in addition to Longi shares, other photovoltaic companies have not fallen behind.
On March 18, Sungrow, the leader in photovoltaic inverters, released the first and largest power SEP50 PEM hydrogen electrolyzer in China. It is reported that this electrolyzer is small in size and light in weight, and is more suitable for applications that are sensitive to land area or deployment space. It is suitable for a variety of hydrogen production application modes and is suitable for wind and solar storage network energy access. It is also a product for hydrogen energy, not closely related to Sungrow’s main photovoltaic inverter business.
Judging from the layout of the two leading companies of Longi and Sungrow in 2021, it seems that cross-industry has become a consensus, and the common point of the two is that they have great interest in hydrogen energy.
Statistics show that the current global demand for hydrogen energy is about 60 million tons per year, and domestic demand is about 30 million tons. Since hydrogen combustion does not produce greenhouse gases, the agency predicts that under the general trend of low-carbon development, the global annual demand for new hydrogen energy will reach 25 million tons in the next 30 years. If these increments are all provided by photovoltaics, it will bring about 900GW per year. Of new installed capacity.
As the world’s highest total PV installed capacity, China has exceeded 250GW by the end of 2020; the well-known research institute IHS Markit predicts that 158GW of PV installed capacity will be added in 2021, which is 34% higher than the forecast in 2020. These two data are very exciting for the current photovoltaic industry.
However, in comparison with the annual installed capacity of 900GW, it seems a bit small. According to the published content of the “White Paper on China’s Hydrogen Energy and Fuel Cell Industry”, it is estimated that by 2050, my country’s hydrogen demand will be close to 60 million tons, and the annual economic output value will exceed 10 trillion yuan. Therefore, it has attracted the attention of many photovoltaic companies, and not only photovoltaic companies.
Prior to this, leading companies such as Great Wall Motors and Sinopec have announced their plans in the field of hydrogen energy, with a larger investment amount and a wider scope. In contrast, the relationship between photovoltaic companies and hydrogen energy and the capital invested are not surprising. However, this does not hinder the “surge” of the secondary market.
Soon after Longi announced its entry into hydrogen energy, the share prices of hydrogen energy companies have risen sharply. Among them, Houpu, Furui Special Equipment, Meijin Energy, Kaimet Gas, Yuneng Holdings and other more than 10 stocks have their daily limit, starting in 2021 With the relatively turbulent A-share index so far, the collective outbreak of the hydrogen energy sector can be said “a good rain after a long drought”.
From the perspective of the secondary market, the cross-industry layout of photovoltaic companies may also be to consolidate share prices.
In 2020, the stock price and market value of my country’s photovoltaic companies ushered in explosive growth. Among them, there are as many as 11 newly listed companies, and leading companies are even more enthusiastic by investors. The two or three times increase in stock price seems to be just an average level, and three or four times increase is not uncommon. Longi, Tongwei and Sungrow have become the first choice for photovoltaic companies to invest in. Until the beginning of February this year, photovoltaic companies were still very popular in the secondary market.
But starting from mid-February, the stock price of photovoltaic companies finally “falls down from the altar.” According to data, Longi’s shares fell from the highest of this year’s 123 yuan to the lowest of 76.79 yuan, a decrease of 37.56%; Sungrow dropped from the highest of this year’s 119.09 yuan to the lowest of 62.77 yuan, a decrease of 47.29%; Tongwei shares fell from This year’s highest point of 54.09 yuan, fell to the lowest point of 34.12 yuan, a decline of 36.90%.
The stock prices of photovoltaic companies have fallen sharply. On the one hand, from 2020 to the beginning of this year, the increase is too large, higher than the profit increase predicted by the performance, and the two do not match. In addition, the suspension of some companies has caused many investors to lose confidence and one after another. On the other hand, the price increase of silicon materials has had a great impact on the development of photovoltaics this year. Although many people in the industry predict that this year’s new installed capacity will exceed 2020, the price of silicon materials has risen successively, which has caused the industrial chain Under a lot of pressure, the overall situation is not optimistic.
Therefore, photovoltaic companies need to develop a diversified layout to consolidate their share prices in order to avoid a further decline. The two are not contradictory. Therefore, industries with broad development prospects have become the first choice.
In the announcement of LONGi’s acquisition of Sente shares, it said that this acquisition will help promote the business integration of both parties, give full play to the advantages of Sente shares in building roof design and maintenance, and combine the advantages of LONGi shares in BIPV product manufacturing, The two parties will jointly develop business development in the large-scale public construction market. It will help the company expand the scope of distributed markets and expand the application scenarios of photovoltaic products. And BIPV is a trillion-level market in the eyes of many industry insiders.
The prospect of hydrogen energy is considered to be an industry with an annual economic output value of more than 10 trillion yuan. Longji shares will definitely not be the last giant to cross the border. Of course, photovoltaic and hydrogen energy can also give full play to the synergistic effect, develop together, and achieve the goal of carbon neutrality as soon as possible!
Dongguan Slocable Photovoltaic Technology Co.,LTD.
Add：Guangda Manufacturing Hongmei Science and Technology Park, No. 9-2, Hongmei Section, Wangsha Road, Hongmei Town, Dongguan, Guangdong, China
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