According to Zhitong Finance APP, Soochow Securities released a research report stating that the photovoltaic equipment industry's performance is under short-term pressure, awaiting industry recovery. The selected representative companies in the photovoltaic equipment industry total 11, including JSG, Qingdao Gaoce, Liancheng CNC, Maxwell, Jiejia Weichuang, Dier Laser, Autowell, Jincheng Co., Ltd., Jinbo Co., Ltd., Shuangliang Energy Saving, and Robotek. On the revenue side: In 2024, the total operating revenue is expected to reach 84.86 billion yuan, a year-on-year increase of 2%, with growth slowing compared to the same period in 2023; in Q1 2025, the total operating revenue is expected to reach 15.83 billion yuan, a year-on-year decrease of 19%. On the profit side: In 2024, the total net profit attributable to the parent company is expected to be 5.48 billion yuan, a year-on-year decrease of 57%, with the profit decline mainly due to slowing revenue growth, a decrease in gross margin, and an increase in impairment losses; in Q1 2025, the total net profit attributable to the parent company is expected to be 1.5 billion yuan, a year-on-year decrease of 40%.
In the silicon wafer segment, it is recommended to focus on the leading silicon wafer equipment company JSG (300316.SZ) and the gradually realized slicing OEM logic of Qingdao Gaoce (688556.SH); in the battery cell equipment segment, it is recommended to focus on the leading HJT complete line equipment company Maxwell (300751.SZ); in the module equipment segment, it is recommended to focus on the leading string welding machine company Autowell (688516.SH).
<h2>Soochow Securities' main viewpoints are as follows:</h2>
Annual report summary: Performance under short-term pressure, awaiting industry recovery
The selected representative companies in the photovoltaic equipment industry total 11, including JSG, Qingdao Gaoce, Liancheng CNC, Maxwell, Jiejia Weichuang, Dier Laser, Autowell, Jincheng Co., Ltd., Jinbo Co., Ltd., Shuangliang Energy Saving, and Robotek. On the revenue side: In 2024, the total operating revenue is expected to reach 84.86 billion yuan, a year-on-year increase of 2%, with growth slowing compared to the same period in 2023; in Q1 2025, the total operating revenue is expected to reach 15.83 billion yuan, a year-on-year decrease of 19%. On the profit side: In 2024, the total net profit attributable to the parent company is expected to be 5.48 billion yuan, a year-on-year decrease of 57%, with the profit decline mainly due to slowing revenue growth, a decrease in gross margin, and an increase in impairment losses; in Q1 2025, the total net profit attributable to the parent company is expected to be 1.5 billion yuan, a year-on-year decrease of 40%.
In 2024, profitability is under short-term pressure due to impairments, with gradual recovery expected in Q1 2025. The gross margin of the photovoltaic equipment industry in 2024 is expected to be 24%, a year-on-year decrease of 6 percentage points; the net profit margin attributable to the parent company is expected to be 6%, a year-on-year decrease of 9 percentage points. The decline in the net profit margin attributable to the parent company is mainly due to the decline in gross margin caused by falling prices of certain products during the downturn cycle, as well as inventory write-down losses and credit impairment losses. As the industry scale increases, cost control capabilities gradually strengthen, and the industry's period expense ratio remains stable. The average period expense ratio for the industry in 2024 is expected to be 10.7%, a year-on-year decrease of 0.5 percentage points. The industry continues to maintain high R&amp;D investment, with R&amp;D expenses reaching 4.62 billion yuan in 2024, a year-on-year increase of 1%, and the R&amp;D expense ratio is 5.4%, mainly due to some companies gradually utilizing platform technology to enter the semiconductor equipment market, resulting in sustained high levels of R&amp;D expenses.
Silicon wafer equipment: Low-oxygen monocrystalline furnaces &amp; tungsten wire diamond wires &amp; future prospects for thin wafers, equipment exports ongoing
Low-oxygen single crystal furnaces are the next generation technology trend for silicon wafer equipment. TOPCon is more prone to issues such as concentric circles and black heart wafers. This is mainly due to the relatively high-speed convection of high-temperature silicon solution in the crucible, where the outside is hot and the middle is cold, causing the bottom to be hot and the top to be cold. The silicon solution in the crucible can create a phenomenon similar to &#34;boiling,&#34; resulting in internal flow that continuously scours the quartz crucible. Quartz is silicon dioxide, and during this scouring process, oxygen can be incorporated into the silicon solution, leading to a higher oxygen content in the crystal. Under subsequent high-temperature processes (such as B diffusion), oxygen in TOPCon is prone to precipitate and form oxygen rings, i.e., concentric circles, which affects efficiency and yield. Therefore, TOPCon is more sensitive to the oxygen content in silicon wafers; while HJT, being a low-temperature process, has a low probability of concentric circles and can choose silicon wafers with high oxygen content.
In 2024, the capacity layout in the Middle East is rising, and domestic equipment manufacturers are welcoming overseas opportunities. The photovoltaic demand in the Middle East is expected to grow significantly, with installed capacity likely to exceed 35GW by 2027. Traditional oil-producing countries are gradually transitioning from a reliance on oil and gas as their sole energy and fiscal revenue structure to a diversified, clean, and sustainable energy system. Against this backdrop, particularly driven by Saudi Arabia's &#34;Vision 2030&#34; plan, the photovoltaic installed capacity in the Middle East is expected to grow to 29-35 GW by 2027. Riding the wave of the &#34;Belt and Road&#34; initiative and the energy transition in the Middle East, domestic equipment manufacturers are seizing overseas opportunities. From the current layout of major photovoltaic companies in the Middle East, the entire industrial chain has been covered, including silicon materials, silicon wafers, battery cells, modules, photovoltaic brackets, inverters, and power stations, with plans to build 50,000 tons of silicon material capacity, 50GW of silicon wafer capacity, 35GW of battery modules, 6-8GW of photovoltaic brackets, and 1.5GW of photovoltaic power stations, with a total investment of approximately 35 billion RMB. JSG, as a global leader in photovoltaic single crystal furnaces, is expected to fully benefit from the capacity layout in the Middle East.
Battery Equipment: New Productive Forces HJT Cost Reduction and Efficiency Improvement Accelerate, Overseas Equipment Orders Expected to Increase
Historically, the leader program has guided a shift towards a single crystal route with higher efficiency and lower costs. The essence of photovoltaic technology iteration is that when the efficiency of the previous generation technology reaches its limit, the pursuit of the next generation technology with higher efficiency and lower costs begins. Taking the technological iteration of replacing polycrystalline with monocrystalline as an example, the mainstream technology route in the past was polycrystalline silicon, while Longi, as a latecomer, chose the monocrystalline silicon route. (1) Monocrystalline has higher efficiency and greater cost reduction potential: the cost gap between the two can be bridged through technological improvements. Monocrystalline has fewer impurities and higher conversion efficiency, but the downside is higher production costs and greater technical difficulty. Polycrystalline, although it has more impurities and lower conversion efficiency, has mature technology and lower costs; (2) The demand for grid parity in photovoltaics: The launch of the photovoltaic leader program in 2015 guided downstream power stations to shift towards the single crystal route with higher efficiency and lower levelized cost of electricity.
Domestically: HJT will become the mainstream route for the next generation of battery cells. Driven by the demand for cost reduction and efficiency improvement among photovoltaic companies, HJT battery technology, with its high conversion efficiency, high bifacial rate, and clear cost reduction path, will become the mainstream route for the next generation of battery cells. HJT's theoretical maximum efficiency reaches 29.4%, higher than the 28.7% of the TOPCon bifacial Poly route, with a bifacial rate exceeding 90%, far surpassing other battery technologies
On the other hand, HJT has a clear cost reduction path, including 0BB, silver-coated copper, and full-open mesh, all of which have made substantial progress.
Component Equipment: Renovation Extends Prosperity Cycle, Equipment Manufacturers Fully Benefit from Overseas Expansion
Against the backdrop of rising silver prices, the industrialization progress of 0BB technology is expected to accelerate. 0BB (no main grid) is a further upgrade of SMBB technology. On one hand, it directly eliminates the main grid of the battery cells, further reducing silver consumption; on the other hand, it replaces the original main grid's function of conducting current with copper ribbon in the component stage. In the past, the ribbon diameter of MBB components was between 0.2-0.4mm, while the 0BB ribbon is thinner, with a diameter of 0.2mm, resulting in a smaller shading area, theoretically increasing component power. Calculations show that for every 1000 yuan increase in silver price, 0BB can save an additional 2-4 cents/W. The slurry consumption of HJT under 20BB is about 10mg/W, which can be reduced to 6-7mg/W after applying 0BB, saving 3-4mg/W. Considering pure silver slurry or silver-coated copper slurry, it is estimated that if the silver price rises from 6000 yuan/KG to 12000 yuan/KG, the cost savings from 0BB can be amplified from 0.01-0.02 yuan/W to 0.02-0.04 yuan/W.
Risk Warning
Photovoltaic installation volume may fall short of expectations, and the progress of new technology upgrades may not meet expectations

688556

688516

300751

300316

Soochow Securities Co., Ltd. released a research report indicating that the photovoltaic equipment industry is under short-term performance pressure, with an expected operating revenue of 84.86 billion yuan in 2024, a year-on-year increase of 2%, but with a slowing growth rate; the revenue for the first quarter of 2025 is expected to be 15.83 billion yuan, a year-on-year decrease of 19%. In terms of net profit attributable to the parent company, it is expected to be 5.48 billion yuan in 2024, a year-on-year decrease of 57%, mainly affected by the slowdown in revenue growth and the decline in gross profit margin. Key recommendations include leading companies such as JSG, Qingdao Gaoce, Maxwell, and Autowell

Zhitong

Qingdao Gaoce

Autowell

Maxwell

RoboTechnik

DR Laser

Shuangliang Eco-Energy

JINCHEN MACHINERY

Soochow Securities Co., Ltd.: The photovoltaic equipment industry faces short-term performance pressure, awaiting industry recovery