On April 16, the domestic photovoltaic module automation equipment leader Jinchen (603396) released its 2019 annual report.From January to December, the company achieved revenue of 862 million yuan, an increase of 13.97% year-on-year; realized net profit attributable to its parent company was 60.14 million yuan.Compared with the same period last year, the company declined. The company plans to distribute 1.8 yuan (including tax) for 10 shares.

What is worthy for the market to pay attention is that the sales of Jinchen's main product-photovoltaic modules equipment in 2019 increased about 15% compared with the same period last year.The overall performance of the company is good, and the gross profit margin is basically the same as last year.

In recent years, the company's overall strategic layout has extended from the field of photovoltaic module automation equipment to cell equipment, with more product planning and expenditures in the field of cells. In 2019, the company added two subsidiaries, Chenjin Smart and Tuosheng Smart. Specializing in the development and design of high-speed screen printing machines and TopCon high-efficiency cell PECVD equipment.Especially in the field of R & D, from 2015 to 2019, the company's annual R & D expenses accounted for more than 8% of revenue, and reached a peak value of 8.85% in 2019. This has a certain impact on the company's net profit.

The industrial chain extends forward  Enjoy the vast space of the market 

From advanced photovoltaic modules to high-efficiency battery technology, why should Jinchen lay out upwards? In the face of doubt, Jinchen Chairman Li Yisheng explained: "Silicon materials-silicon wafers-cells-photovoltaic modules-power stations are 5 stages in the photovoltaic industry. Jinchen is currently focusing on the field of photovoltaic module automation equipment.It has been 17 years since then.Three years ago, it was extended to the field of photovoltaic cell equipment to further clarify the leader’s strategic positioning  of high-efficiency photovoltaic cell and component equipment and port automation solutions."

"The investment on cell equipment is about 4 times on components.In particular, Jinchen chose the more mature HJT technology cell equipment with the highest input cost and wider market space."Li Yisheng continued to add that" a preliminary estimate of 1GW photovoltaic module investment in 2019 was 100 million yuan. In the field of cell equipment, 1GW investment needs about 400 million yuan, if the PERC technology investment is 300 million yuan, PERC + TopCon investment is 400 million yuan, and the HTJ technology investment is as high as 600-750 million yuan. It is expected that as the production capacity advances, the future investment will be maintained between 550 million and 600 million yuan.Indeed the market space is too broad."

PECVD equipment is the key equipment used in the core process of HJT cell production line, and is relatively expensive. It relies heavily on foreign imports. Breaking through PECVD equipment and achieving import substitution is Jin Chen ’s mission as a leader in the photovoltaic equipment industry.

What is worthy for investors to pay attention is that the company’s convertible bonds will not raise more than 380 million yuan, which is used for the“annual production of 40 sets HJT high-efficiency cell PECVD equipment project ”. Through this project, Jinchen is expected to break the technical bottleneck in the development of battery industry ,change the current situation where key technologies and equipment depend on imports, reduce the investment on HTJ battery production lines and lead the industry. In addition, the company has accumulated many high-quality customers in the industry through the development and sales of photovoltaic module equipment. The advancement of cell equipment project is expected to form a good synergy and achieve efficient development.

Technical layout has achieved remarkable results  Three fields go hand in hand 

A lot of R & D investment, where is the future technical layout concentrated? "Three directions:advanced photovoltaic modules, high-efficiency battery technology and  port automation equipment based on artificial intelligence." Ge Min, chief operating officer of Jinchen Co., said, "PV module automation equipment is an advantage field of Jinchen. In this field, our global market share is between 30% and 40%. The company has a world-leading level in the core technology of a number of components and equipment. Longji Leye, Tongwei shares, JinkoSolar, Jingao Solar, Dongfang Risheng, GCL-Integrated, etc. are our customers "

"In the field of photovoltaic module automation equipment, we will continue to invest to consolidate our leading position. Since the second half of 2019, photovoltaic module technology has changed significantly, mainly due to changes in silicon wafer size and module connection technology. Jinchen has also made corresponding R & D reserves. In 2019, the shingle production line has been verified by the customer.The cell connection technology equipment is expected to be launched in the market in October 2020.In addition, we are also continuing to develop the component production line and laminator to improve performance and efficiency, "added by Li Yisheng."

"In the field of high-efficiency battery automation equipment, we have selected HJT from the perspective of battery technology. HJT technology is highly mature and may become the mainstream high-efficiency battery technology after PERC in the future. We are firmly optimistic about the prospects in this field." Ge Min continued , "From the key indicators of photoelectric conversion efficiency point of view  , the mainstream battery technology PERC, TopCon (after PERC), and HJT are gradually improved. It is estimated that PERC is maintained at 22.5% while the HJT after mass production can be as high as 28%, and the conversion efficiency varies greatly. This is of great significance for the photovoltaic industry chain to reduce costs and increase efficiency, and to achieve parity on the power generation side. "

From the perspective of current industry situation, in terms of the current "2.5" generation technology with more heavy volume, the company and the industry technology leader Ningbo Institute of Materials Science and Technology jointly develop PECVD for TopCon batteries. At present, the prototype is running test in the industry leader ; in terms of the 3rd generation technology HJT Ge Min believes that in 2019, a small number of manufacturers have achieved small-volume production of HJT cells.If 2019 is the outbreak node of HJT cells, then as more capacity is implemented at the end of 2020 or 2021, and equipment manufacturers will face more market opportunities. At present, the company's core equipment prototypes such as PECVD are expected to be sent to domestic leading testers during the year, which is expected to bring strong momentum for the company's subsequent explosive growth.

In addition, in terms of artificial intelligence port automation equipment, Jinchen has provided intelligent control for Ningbo Port, Tianjin Port, etc., and will become one of the company's important businesses in 2020, which is worthy for market to expect.

Photovoltaic equipment manufacturers will welcome development opportunities 

After more than ten years’ development,photovoltaic industry has become one of the few strategic emerging industries in China that can simultaneously participate in international competition and is expected to reach the international leading level. At present, in the manufacturing scale, industrial technology level,application market expansion,industrial system construction and other aspects,China's photovoltaic industry is the highest in the world.

The "May 31" New Deal in the photovoltaic industry has accelerated the elimination of backward production capacity in the photovoltaic industry and increased the concentration of the industry. The implementation of the parity on-grid policy and the strengthened consumption policy of photovoltaic power generation in 2019 have promoted the rapid development of the photovoltaic industry and expanded the demand for efficient photovoltaic modules. Especially with the wide application and constantly improving technological level of domestic photovoltaic equipment,it provides favorable support for the development of entire photovoltaic industry and improves China's photovoltaic products’ international competitiveness. The size of China's photovoltaic manufacturing equipment market will grow steadily in the next three to five years.

In the future, as local manufacturing of photovoltaic industry in other countries is put on agenda, domestic photovoltaic module customers  continue to expand production and products, technology moves toward high-end and import substitution intensifies,photovoltaic equipment manufacturers will usher in better development opportunities（CIS）.