One-handed photovoltaic hand multi-line

The A-share market continued to make a fuss in the aerospace military sector. Aerospace electromechanics has also been affected by this rise. Some people think that this is a concept of speculation, and some people think that this is the effectiveness of the photovoltaic industry rebound, in the end whether Aerospace has the potential to increase valuation?

The aerospace electro-mechanical industry does not seem to have anything to do with photovoltaics, but the fact is that the parent company's background for the aerospace defense industry is really photovoltaic-based.

In the 1st year of 2009, the industry entered a period of gold development, and China entered the era of capacity being the king. The entire industry entered a phase of mad expansion. In 2011-2013, the dark era of polysilicon approached, the production capacity was obviously excessive, and the market was rapidly declining. The entire industry did not have any links. Anyone can make money. In 2014, the photovoltaic industry recovered in an all-round manner.

Slim profit

"Until the end of 2012 and the beginning of 2013, the market price was raised steadily." Xu Jie, general manager of Aerospace, told reporters.

From the perspective of the whole industry, the photovoltaic industry has indeed recovered. In terms of raw materials, polycrystalline silicon prices rose from 15-18 dollars last year to more than 21 dollars this year.

In the first half of 2014, the new grid-connected capacity for photovoltaic power generation reached 3.3 million kilowatts, an increase of approximately 100% from the same period of last year. Among them, the newly-increased grid-connected capacity of photovoltaic power plants was 2.3 million kilowatts, and the new distributed photovoltaic grid-connected capacity was 1 million kilowatts. The accumulated on-grid electricity generated by photovoltaic power generation was approximately 11 billion kWh, a year-on-year increase of more than 200%.

Although there is such data, in the first half of the year, there are still many large companies in the PV industry that are in bankruptcy. The surviving companies are still hesitant to expand their production capacity. Low gross profit margins, in turn, have prompted companies to make profits through scale production. It can be said that the entire photovoltaic industry is struggling with such contradictions.

In the face of this situation, the aerospace electromechanical strategy is to develop steadily. When capacity is king, which is the craziest era in the photovoltaic industry, aerospace's production capacity is only 500 megawatts. This leaves room for companies to move forward and backward in the cycle. “At present, we have fully tapped the potential of the original production line and increased the production capacity from 500 MW to 800 MW. At the same time, through contract manufacturing and other methods, we will strive to achieve a production capacity of 900 MW to 1G during the low profit period.” Xu Jie Introduction said.

Gain opportunities in the cycle of rebound, do not faint head in the heat to survive. This is a survival essential for enterprises that are in the cycle industry.

Only 500 megawatts of capacity? This can not help but make people skeptical. According to statistics, Aerospace has more than 400 power stations. In 2009, the first batch of overseas power stations approved by China included Aerospace's projects in Italy and Germany.

When reporters questioned Xu Jie, he did not feel surprised: "This is closely related to the profit model of Aerospace."

Aerospace electromechanical builds and develops power stations according to BOT or BT methods. With its own photovoltaic equipment to build power stations, and at the same time do a loan and other financing structure, the power station is built and sold to financial investors, and the final operation is still done by aerospace.

"We provide operational services. This is our core operating model." Xu Jie concluded.

At present, the construction and operation of the power station is more focused on long-term returns, and is suitable for those companies that are relatively stable. The characteristics of this industry determine the steady style of aerospace electromechanical.

“Photovoltaic power plants have strong stability and will not change much in the next 10 to 20 years. Operational maintenance costs can also be easily calculated because of this stability,” said Xu Jie.

Although the model is clear, but because of the relatively thin profit generated by the power station, it is not an easy task to find such a financial investor.

Indeed, in China, the cost of financing is extremely high, loans are basically 8% to 10%, and the revenue of power plants is to reach 10% to 20%. If over the next 20 years, the annual return will be close to 20%, for the photovoltaic industry. It is almost impossible to say.

"In contrast, in Germany, a profit of 5%, a loan of 3%, plus leverage, the financing cost is also about 5%, so that the return of photovoltaic power plant 10-15 points can earn a normal long-term for investors. This is only reasonable.” Xu Jie stressed.