Spaceflight machine backed by trimming the PV market in transition into primary risk

Polaris solar PV net news: among the many listed companies with photovoltaic power station, spaceflight machine is one of the few to taste the sweetness of family. The main automobile parts and new materials of company since 2000 after entering the PV field, Chase “hot spots”, and by the end of 2013, PV business has around 80% per cent of its total business.

From 2012, spending huge sums to bet on photovoltaic power plant, to now rely on the space resources of the brand become the industry leading, spaceflight machine in at the bottom of turn of the photovoltaic industry and backed by the Central SOEs have “flagging” it and liquidity facilities for two major advantages. By the end of 2013, the company had total sales of PV power station 150MW, and planned to “Twelve-Five” period total sales of photovoltaic power plant for more than 1000MW,2014 years to complete the sales of 400MW.

On July 12, the spaceflight machine earnings reduction announcement, projected the company sells photovoltaic power plant in the first half of 50MW, 100MW reduction over the previous year, resulting in first-half net profit fell to 80%. Insiders pointed out that, due to the photovoltaic power plant is a typical capital-intensive industries, if the company was unable to develop the smooth transfer of power, rapid withdrawal of funds, in the fierce competition in the future, its leading status or would face a tough challenge.

Bet on photovoltaic power plant

Spaceflight machine recent PV investment in Western China, was on June 12 this year.

The same day, spaceflight machine announcement, shares of subsidiary space Galaxy to lose out on energy 200MW Western PV power station projects have been completed acquisitions. Spaceflight machine Board of Directors agreed to share ratio (15%) up by real space Galaxy energy contributing $ 212.5 million Yuan. Think of listed companies, the foreign investment “will help the company to continue to diversify its photovoltaic power plant investment channels and realize photovoltaic power plant development and enlarge leverage effect, enhance the overall profitability of PV industry.”

In fact, as early as March this year, aerospace electromechanical bulletin, intended for two power projects while contributing $ 272 million dollars, media reports said, this is the company for nearly a year for the 10th time in bulletins announcing investments and capital photovoltaic power station project involving totaling more than 2 billion yuan.

Since 2000, after entering the PV module production link, spaceflight machine successively in various ways into the polysilicon, wafer production, and gradually formed a “Poly-wafer-cell-module-power plants” a complete industrial chain. But in the past two years the whole photovoltaic manufacturing overcapacity situation, the company also had to drop out of poly-silicon and wafer production processes in order to “stay alive”.

“As the ebb tide survived photovoltaic business, spaceflight machine became a typical representative of the betting on a PV end markets. “A personage in expressing this view in an interview with reporters.

On November 20, 2012, a notice will be spaceflight machine pushed to the front. At the time, is in the trough of the photovoltaic industry spaceflight machine from hell and made a momentous decision: alteration of capital investment projects, both intended for manufacturing technical transformation part of the funds to join Western PV power generation projects. Switch value amounted to 389 million Yuan, respectively, to Gao Ya son Tan 50MW, Zhangye, Jiayuguan, 100MW, Anyang, 9MW, Ganzhou district, South Beach and the PV of the Tan 9MW.

From the outside, it is undoubtedly the spaceflight machine broken wrist thing. Previously, saddled by photovoltaic business, the company net loss of 109 million dollars in 2011, and the first half of 2012, the company consolidated gross profit margin was-10.8%, solar new energy business, the gross profit margin was-25.4%.

“Under the influence of market growth of the photovoltaic industry, PV product prices, product margins in manufacturing also fell sharply in” spaceflight machine for the change to raise investment project to make such an interpretation, “and PV business links, with a certain degree of investment barriers, so maintain a relatively stable return on investment. “Aerospace electro-mechanical judgments are: photovoltaic power plant will become the industry hot spots.

In fact, before the changes raised the tender, spaceflight machine has made a series split Silicon business work. In October 2012, Shenzhou Silicon of the company owns 29.7% shares of the company, reserve price of 488 million Yuan, the Beijing equity exchange transfers.

Cut losses in upstream business, instead betting PV end markets, aerospace electromechanical transformation will soon pay off. The first half of 2013, the company achieved operating income of 1.21 billion yuan, an increase of 77% to achieve net profit of 170 million Yuan, up drastic increase of 472 million dollars, successful turnaround.

“(2013) the first half of the company added PV power station project to flagging 459MW, approved projects are accelerating the construction and achieved 150MW photovoltaic power plant to sell the better performance. “Aerospace electromechanical rose thanks to the PV business performance advantage began to appear.

Backed by the central space group

In 2013, the spaceflight machine revenues 3.359 billion yuan, an increase of 1.829 billion yuan, an increase of 119.62% to achieve 144 million yuan in net profit attributable to shareholders of listed companies, rose 1.033 billion dollars.

Spaceflight machine think that PV will be benefiting from domestic support policies on the one hand and fast-growing international emerging markets, photovoltaic market back down to pick up component shipments rose 89.54%; the other is due to speed up domestic power plant project development and investment, innovative profit model, power plant EPC (engineering contract) substantial growth in business 1111.28%.

According to China in 2013 NPDSolarbuzz PV project contractor (EPC) ranking, spaceflight machine more than 600MW, contractor installation into the nation’s second-largest photovoltaic EPC companies, second only to tebian electric.

According to the reporter, spaceflight machine worked out 2014 “self-built PV 500MW, undertaking EPC project 100MW, approval or registration reply 450MW, grid-connected operation of 400MW, distributed generation project development to achieve zero breakthrough” program and achieving power station 400MW sold form not less than 400MW of rolling development of photovoltaic power plant capacity, fast reaching economies of scale. In addition, the spaceflight machine “Twelve-Five” cumulative sales of photovoltaic power stations during the target from 700MW raised to more than a 1000MW.

Insiders pointed out that spaceflight machine behind the ambition, as the China Aerospace Science and technology group under the new energy photovoltaic business platform which has a unique advantage: project development and financing capacity.

“Substantial shareholder of Shanghai aerospace industry (Group) brands as well as background, aerospace electrical and mechanical advantages in the area of government relations. “The members of the Fund who asked not to be named told reporters that,” especially in Western power plants get more difficult context of flagging approval, aerospace electrical capacity advantages for development projects is more obvious. ”

In fact, numerous private enterprises or SMEs are still hard to achieve PV flagging when you travel, spaceflight machine has made full use of the brand resources, cooperation with local governments, power group, the current layout of the PV market has been extended to Ningxia, Xinjiang, Gansu and Qinghai provinces such as Hebei, Shanxi, Shaanxi and Yunnan.

“Spaceflight machine in hydropower development in China has been doing very well,” NPDSolarbuzz Lian Rui, senior analyst, told reporters. “The company’s components business is not too small, remain in second-tier, but it attaches more importance to the downstream. “Public information, aerospace electrical and mechanical construction of xigaze in 2000 No 42 photovoltaic power station of electric power engineering, has been building various types of power station more than more than 600 seats.

Worth noting is that current photovoltaic power plant business is relatively new, is still difficult to direct project financing, but other assets to guarantee or other liability guarantee and usually higher financing costs, the private small and medium enterprise’s financing capacity presents a great challenge. Spaceflight machine relies on trimming the background of space group, financing advantages reveals.

Reporters combed spaceflight machine results found, the company is currently the largest amount of a long-term loan of 600 million Yuan, the company acquired through space systems to apply to the Academy of aerospace group eighth. The loan for a period of 5 years, at only 5% per annum; in addition, aerospace electromechanical major shareholders underwritten to benchmark interest rate 6.55% 15 favourable terms for access to national development Bank long-term loan.

UBS Securities based on long-term borrowings of the spaceflight machine report information, calculate the weighted interest rate for long-term loans is approximately 5.66%, far lower than rivals. In addition, aerospace electromechanical 2013 annual report shows that its asset-liability ratio of only 51.42% also in the lower level, with more financing space. UBS Securities said that spaceflight machine advantages in financing capacity helps to improve the profitability of hydropower development in the business.

Plant sale is only the first half of 50MW

It is worth noting that, on July 12, and spaceflight machine earnings reduction announcement is expected in 2014, vested in the shareholders of listed companies ‘ net profit for first half of 33.89 million Yuan, down 80%. Spaceflight machine explained that the company sells PV 100MW reduction a year earlier in the first half. But the company also said that plans to sell this year PV power station 400MW, had sold the 50MW in the first half, the rest is still under construction, will transfer the second half of sales.

While spaceflight machine did not change the sales targets for 2014, but companies are still unable to sell as the first power project risk: since the project rate of return is not completely satisfy investor demand, or the terms and conditions on both sides, no agreement, the company power station not on track to achieve sales, leading to the eventual profits increased uncertainty.

In March, the media reported that since the end of last year to early this year, spaceflight machine package listed on equity exchanges twice transferred its stakes in two photovoltaic power plant project, the transferee was not found. Journalists from other news sources verifying that the spaceflight machine sold only 50MW photovoltaic power plant in the first quarter.

“General transfer of hydropower development enterprises in the second half, especially concentrated in the fourth quarter, which is the seasonal nature of the industry. “A long-term investment focus on PV power station told reporters, but for developers, timely transfer of power would cause capital precipitation, affecting cash flow. Pressure on cash flow will enable the power plant developer faces enormous challenges.

In addition, also the argument that, if it cannot find buyers, developers will have to become operators, early construction of power stations payback period will be spent by elongate, long-term risks to the project development.

Research institutes Solarzoom statistics, last August agreed, signing, and is disclosed internally reached 130,000 MW photovoltaic project development and construction, newly developed than countries at the 35,000 MW of installed capacity by 2015 “Twelve-Five” target exceeded more than 3 times more than doubled, mostly for large power projects. This means that, for some time to come, photovoltaic power plant development and intense competition will continue.

UBS Securities also pointed out that the 100MW PV power station construction needs to invest 800 million ~10 million, increased as the number of PV power plant developers in the future, have a smooth power transfer channels, rapid withdrawal of funds to improve efficiency, “will also become important factors.”

In addition, the spaceflight machine also clear that photovoltaic industry or face the risk of receivable cannot be recovered, such as the part of the customer’s credit is not high impact allocation policies are not in place or local tariff, resulting in loan payback period of uncertain or difficult to recover.

“In fact, developers to select customers, is mainly look at the capacity. “These investment professionals told reporters. In this regard, the spaceflight machine says it will strictly enforce the customer’s credit rating, credit management and offshore credit guarantee policies, closely tracking the renewable surcharges imposed and subsidies, on line after timely subsidies for renewable energy applications, also arrange the financing structure, debt and project accounts, guaranteed PV power plant project as usual.

Original title: spaceflight machine backed by central SOEs held two advantages of PV market in transition into primary risk

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