China’s Shuangliang surges after booking $2.1 billion solar wafer order

(Yicai Global) May 10 — Shares of Chinese firm Shuangliang Eco-Energy Systems, a PV equipment supplier that more than quadrupled its net profit in the first quarter, jumped after it said its northern plant of China had won another long-term customer.

Shuangliang share price [SHA: 600481] was up 7.9% at CNY11.37 ($1.70) in the afternoon, after hitting the daily upper limit of 10% earlier. Stocks have nearly tripled in value over the past 12 months.

The buyer’s shares were also rising. Solar module manufacturer Risen Energy [SHE: 300118] rose 4.3% to 23.60 CNY in the afternoon.

Risen Energy unit to order nearly 1.6 billion large monocrystalline silicon wafers worth CNY 14.2 billion (USD 2.1 billion) by 2024 from product maker’s factory machinery in Baotou which is expanding its production, the Jiangyin-based vendor said in a statement. statement yesterday.

This year, Ningbo-based Risen is expected to order no less than 72 million units. The numbers are expected to eventually reach 900 million units in 2024. Pricing will be decided on a monthly basis, the statement added.

Shuangliang has been successful in attracting customers lately. Since September, the same factory in the Inner Mongolia Autonomous Region has received three-year silicon wafer orders from eight major solar cell makers. The count of these is CNY 63.7 billion based on preliminary price estimates.

Shuangliang has invested CNY 14 billion to build a new 40 gigawatt facility to produce large-size solar silicon wafers at the Baotou plant since February 2021. Full capacity is expected to be reached next year.

The buyer also has big plans in Baotou. Risen Energy announced plans late last year to build new energy projects worth 44.7 billion yuan in the northern city. These projects include a solar module factory and a 3.5 GW photovoltaic power plant that requires silicon wafers.

Shuangliang had a great year. In the first quarter, the company’s net profit more than quadrupled to CNY 121 million (USD 18.1 million) from a year ago due to strong market demand and higher commodity prices. solar product processing equipment, the company’s main product, according to its revenue report. Meanwhile, the company’s revenue quadrupled to 1.7 billion CNY (253.4 million USD).

Editing: Emmi Laine, Xiao Yi

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