Tongwei set for six-fold profit leap after polysilicon, solar cell prices remain high

Mar 30, 2022 06:45 PM ET
  • Solar maker Tongwei is forecasting for a six-fold rise in net profit for Q1 2022, highlighting the effect prices spikes are having on upstream supplier fortunes.
Tongwei set for six-fold profit leap after polysilicon, solar cell prices remain high
Image: PV Tech

In a statement to the Shanghai Stock Exchange earlier today, Tongwei validated it expected net profit in Q1 2022 to fall in the range of RMB4.9-- 5.2 billion (US$ 771-- 818 million), an increase of between 478-- 514% year-on-year.

Tongwei noted that, basically, the producer would be making in between RMB4 billion as well as RMB4.35 billion greater than it carried out in the opening up quarter in 2021.

It attributed this boost to set up capacity in the coverage duration surpassing assumptions, bring about a more than expected need for upstream solar products which has, consequently, preserved greater prices.

Moreover, Tongwei stated it had actually had the ability to capitalise on new manufacturing capacity that had come onstream because Q1 2021, profiting better from the conserved altitude of material as well as component prices.

Market prices for polysilicon specifically stay more than expected, trading at RMB245/kg (inclusive of China's 20% sales tax) in current weeks.

Last month, Tongwei reported that its revenue had increased by more than 50% in 2021 whilst suggesting that limited product supply suggested that high prices were significantly right here to remain, at the very least in the short-term.

PV Tech's head of market research Finlay Colville has on the other hand additionally mused that Tongwei can end up being the market's leading PV module supplier by 2025 must it pursue a vertically-integrated product technique that would certainly see it become the field's initial polysilicon-to-module manufacturing entity.

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