If coal has made Britain and oil has made the United States, then the upcoming new energy era is the best time for China to show its prominence.
Saving electricity is one of the most important aspects of this energy revolution.
Our current new energy power generation methods mainly include wind power generation, solar power generation, etc. Compared to wind energy, solar power generation is more stable and has greater potential than wind energy.
Today, I would like to introduce to you a global leader in the field of solar cell modules - JinkoSolar.
For the solar module sector, shipments are one of the key indicators to measure a company's performance.
In this regard, JinkoSolar ranked first in the world in terms of cumulative shipments, and maintained its position as the world's No. 1 in terms of shipments for four consecutive years from 2016 to 2019.
This means that consumers are more willing to choose JinkoSolar's products among the same level of solar cells.
So what is the performance of JinkoSolar, which is the world's largest in terms of shipments?
From 2020 to 2023, JinkoSolar's revenue climbed from 33.660 billion yuan to 118.682 billion yuan, an increase of 253% in four years, and its net profit increased from 1.042 billion yuan to 7.486 billion yuan in the same period, a significant increase of 618% in four years, which is a very impressive growth rate.
Looking at the ROE performance, which is the most reflective of profitability, JinkoSolar's ROE doubled from 2020 to 2023, from 10.5% to 24.19%.
So why is JinkoSolar's performance so impressive?
First of all, JinkoSolar chose the golden track.
China is the country with the fastest growth in photovoltaic power generation installations in the world, and it is expected that in the next ten years, China's photovoltaic power generation market will usher in a new round of rapid growth with active and stable policy support, attracting more strategic investors to integrate into the industry.
By the end of 2023, the installed capacity of solar power generation in China will be about 609.49GW, a year-on-year increase of 55.2%. The new PV installed capacity for the whole year was 216.88GW, a significant increase of 148% year-on-year, almost the sum of the new PV installed capacity in the past four years.
Although the entire photovoltaic power generation industry still relies on policy support and guidance to a large extent, with the continuous progress of photovoltaic technology and the continuous reduction of costs in mainland China, photovoltaic power generation is gradually changing to economic orientation, and the entire industry will be more commercialized.
In 2022, the cost of photovoltaic power generation in mainland China has dropped to below 0.3 yuan/KWh, and it is expected to be further reduced to below 0.25 yuan/KWh in the future.
JinkoSolar not only chooses the big track well, but also has a good judgment on the subdivision.
The core component of a photovoltaic power generation system is a solar panel, also known as a solar chip. It is generally used in photovoltaic power stations and places where power supply is inconvenient, such as solar street lights, solar signal lights, etc.
Solar cells can be divided into N-type cells and P-type cells according to the nature of silicon wafers, and JinkoSolar's main N-type TOPCon solar cells perform better than P-type cells, with higher peak power, that is, more power generation under the same light conditions.
N-type TOPCon solar cells are solar cells that use an ultra-thin tunneling oxide layer as a passivation layer structure, which has a higher bifaciality and a lower temperature rise coefficient and attenuation rate.
It is expected that TOPCon cells will account for more than 60% of the total number of solar cells in 2024, and the proportion will continue to increase, and N-type TOPCon will gradually replace the mainstream PERC cells as the mainstream cell technology in the next-generation market in the future.
Therefore, whether it is from the entire photovoltaic track or the N-type TOPCon segment, JinkoSolar has a lot of room for growth in the future.
Secondly, JinkoSolar's products are very competitive.
JinkoSolar successfully built a number of 8GW TOPCon cell factories in 2022, becoming the first company to achieve large-scale mass production, standing out from the industry and ahead of other competitors.
As a leader in N-type TOPCon cells, JinkoSolar's products are highly competitive in the market. According to the 2023 N-type module bidding list, a total of 92.25 GW of N-type module bidding projects were awarded throughout the year, and JinkoSolar won 11.9 GW of bids, ranking first in the industry.
To understand the competitiveness of JinkoSolar's products, we also need to refer to the test results of PVEL. PVEL's test reports are regarded in the industry as an important basis for evaluating the long-term reliability and performance of PV modules.
From 2016 to 2023, JinkoSolar has been awarded the title of Top Performer in the PVEL PV Module Reliability Scorecard for eight consecutive years, which fully demonstrates the reliability and stability of the company's products.
Finally, JinkoSolar's excellent R&D capabilities.
The first is that JinkoSolar far exceeds the number of patents of its peers. As of April 30, 2023, JinkoSolar ranked second in the "Global Solar Cell Patent Rankings" in terms of patent volume.
In addition to the number of patents, JinkoSolar's scientific research achievements have broken world records 25 times.
In 2023, JinkoSolar's N-type TOPCon large-area PV modules achieved a maximum conversion efficiency of 24.76%, setting a new record for the highest efficiency of modules in the world that has been certified by a third-party authority.
An important breakthrough has also been made in the research and development of perovskite tandem cells based on N-type TOPCon, and its conversion efficiency has reached 32.33% after testing by the Chinese Academy of Sciences, which has greatly improved the conversion efficiency level of similar tandem cells.
This is not only the implementation of the innovation achievements of leading enterprises in N-type technology, but also points out the direction for the upgrading of N-type technology in the entire photovoltaic industry.
summary
JinkoSolar is the world's leading photovoltaic cell module company, and the future development prospects of the photovoltaic power generation field are very broad, especially the development momentum of N-type TOPCon technology cannot be underestimated. JinkoSolar has a high degree of recognition in the industry and a strong product competitiveness, and with the company's excellent R&D capabilities, JinkoSolar's development may reach a higher level in the future.
The above analysis does not constitute specific investment advice. The stock market is risky, and investors need to be cautious.
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