Xinte Energy enters PPVX, index up 1.3 percent
Post date: 26/07/2021 - 20:34
One of the world’s largest manufacturers of polysilicon for the solar industry, China’s Xinte Energy Holding Co. Ltd. joined the PHOTON Photovoltaic Stock Index PPVX on July 23.
According to ist 2020 report, the company had outlined a stake of around 87 percent of its shares held by major investors, including 65 percent held by its main shareholder, Chinese energy and grid technology group TBEA. The latter had founded Xinte Energy in 2008 and listed it on the Hong Kong stock exchange in December 2015. A list published last June in the course of the planned issue of new shares, however, shows a free float of more than 20 percent, which is one of the criteria for inclusion in the PPVX. Xinte Energy confirmed a corresponding request. With 1,200 million shares and a closing price of HKD 20.80 as of the reporting date, the company is valued at the equivalent of about $3.21 billion, or roughly 1.5 times annual revenue and 30 times earnings over the past four quarters.
Xinte Energy, through various subsidiaries and affiliates, is primarily active in three areas: polysilicon production, ECC (Engineering and Construction Contracting) of wind and solar power plants, and BOO (Build-Own-Operate). In 2020, the company generated CNY13.5 billion ($2.09 billion) in revenue, of which 29.5 percent came from polysilicon, 51.9 percent from ECC and 6.6 percent from BOO operations. 12 percent was generated from other businesses, which include PV systems technology development.
However, the polysilicon business is fast becoming the dominant area: in 2020, Xinte Energy nearly doubled its sales – in part by expanding annual production capacity by 36,000 tons – to a total of 66,300 tons. At the end of the year, long-term supply contracts were signed with several major customers, including JA Solar and Longi Solar. These are one of the foundations for the current factory project with an annual capacity of 100,000 tons. Partner companies are also participating in this, most recently Jinko Solar Holding announced a CNY 315 million ($48.7 million) investment in late June. The new factory is currently under construction at Shangejia Chemical Park in Baotou, Inner Mongolia. Until now, Xinte Energy has been producing in Urumqi in the Xinjiang Autonomous Region.
As the PPVX is capped at 30 stocks, Singapore-based module producer Maxeon Solar Technologies – a sister company of U.S.-based solar company Sunpower – was eliminated from the index after its market value fell 46 percent this year and it was the lowest-valued company at about $676 million in market value as of the reporting date.
Last week, the PPVX rose 1.3 percent to 3,680 points, while its benchmark NYSE Arca Oil lost 0.7 percent. Compared to the beginning of the year, however, the PPVX is down 9.6 percent and thus 41.1 percentage points behind the oil stock index (up 31.6 percent).
The week’s highest price gains were posted by Sunrun (9.2 percent), Enphase (9.0 percent) and Meyer Burger (7.7 percent), while the highest losses were recorded by Scatec (13.1 percent), Daqo New Energy (11.1 percent) and Beijing Energy (10.7 percent). The top 3 stocks year-to-date are Meyer Burger, up 40.7 percent, Sino-American Silicon (18.3 percent) and Flat Glass Group (11.4 percent); GCL-Poly remains suspended from trading. The highest share price losses from January levels are posted by Array Technologies (68.4 percent), Soltec (50.6 percent) and Azure Power (42.9 percent).
The cumulative market value of all PPVX companies is currently about €122 billion ($143.8 billion). In a long-term comparison since the beginning of 2003, the PPVX (up 1,208.0 percent) has a lead of 1,108.5 percentage points over the NYSE Arca Oil (up 99.6 percent).