Great Central shares embrace a single silicon PV market remains to be seen

Central shares (002,129, closing price 12.97 yuan) yesterday (July 20) announcement, a subsidiary of Tianjin Central Europe, respectively Ningbo Tianqi electronics, semiconductor companies Changzhou Ling crystal silicon solar energy sales to discuss issues and signed a long-term contracts, involving a total of 770 million yuan orders.

Welcome such a major stake in Central yesterday, good performance but tepid, Shanghai Composite Index rose 2.15% in the case, the Central share has risen only 2.94%.

770 million yuan hand new energy contracts

Bulletin shows that in July 2010 to December 2011 period, Tianjin Central Europe and will provide 539 million yuan ling crystal semiconductor monocrystalline solar wafers; the same period, from the Tianjin Central Europe to provide 230 million yuan to Tianqi electronic single-crystal solar silicon.

Central share is mainly engaged in semiconductor devices and silicon materials production, including discrete products are mainly used televisions, monitors, microwave ovens and other kinds of electrical appliances; silicon material primarily used in semiconductor integrated circuits, discrete semiconductor devices and solar batteries . The company's 770 million yuan this order is to get solar silicon supply contract.

Tianjin Central Europe's leading products FZ monocrystalline silicon production and sales among the domestic counterparts of the first scale, zone melting silicon 65% domestic market share. The company is now the core of the Central share of assets, in 2008, the company's net profit reached 139 million by the financial crisis in 2009, net income reduced to 13.49 million yuan, compared with a loss that year the parent company, remained profitable.

Worry about next year's deposit monocrystalline solar

"Although the company has announced such a large order, but the situation remains unchanged in the first half of the expected good performance!" 1 have been to stock research brokerage in Central researcher to the "Daily Economic News" said that this year, the new energy by foreign influence the policy of subsidies, solar silicon market anomalies hot, but the performance of the company notice of amendment of view, in the first half net profit of more than 1,000 million lower than expected, reflecting the company's silicon side sales contribution to performance is limited. The next year, the volume expansion is then the face of price volatility risks, especially financial subsidies to the European countries decreasing right silicon market in the Ying Xiang will greatly reduce the subsidies Qian, cells and Shangyouchanpin supply, and subsidies reduced Hou Li Du may face shrinking market, the risk of falling prices.

Shares in the recent announcement show ring, with the gradual weakening of the financial crisis, the steady rise of the semiconductor industry, product sales growth Chaoguo expected, product gross margins improved, thus enhancing the profits of the company ... ... is expected to net profit for the first half of 1400 million ~ 16 million yuan.

Further analysis of these people, solar silicon market short-term hot no doubt, may not have persistence. Is currently seeking additional, if successfully completed, may need to think of other ways.