Zhonghuan (002129) company research: M12 large silicon wafers help the photovoltaic industry chain reduce costs and increase efficiency

Zhonghuan (002129) company research: M12 large silicon wafers help the photovoltaic industry chain reduce costs and increase efficiency

Zhonghuan released the “QuaFather” series of products, and the large 12-inch photovoltaic wafers helped the industry chain reduce costs and increase efficiency.

On August 16, 2019, Zhonghuan announced the “QuaFather” series of single crystal silicon wafers, in which the M12 side length is 210mm and the diagonal is 295mm, which is 80% larger than the traditional M2 wafer.


For the manufacturing industry, the introduction of large silicon wafers can reduce the production costs of cell and module manufacturers and improve downstream profitability.

For the owner, the increase of the power of the single module brought by the large silicon chip can reduce the cost related to the number of pieces such as the bracket and the combiner box of the turbine, and the cost of power consumption has been reduced.

Since the beginning of this year, the trend of large-scale silicon wafers has become more obvious. The core of large-scale silicon wafer series is to provide space for downstream battery and component manufacturers to reduce costs. The upstream and downstream of the industry chain work together to accelerate cost reduction and increase efficiency.

With the increase in the size of silicon wafers, it becomes more and more difficult to pull crystals and control costs, which helps continue to optimize the alternating competition pattern of single crystal silicon wafers.

The technological transformation of battery chips may drive the demand for N-type wafers, and the penetration rate of N-type wafers will promote the next stage of excess revenue for wafer manufacturers.

From the perspective of the development of the technical route, as the conversion efficiency of P-type battery cells is improved, it is imperative that P-type battery cells be converted to N-type battery cells.

At present, the N-type battery chip technology mainly includes four technical directions of N-Pert, TopCpn, heterojunction, and IBC. Major battery cell manufacturers are actively deploying.

Zhonghuan shares actively deployed N-type silicon wafers and predicted to increase the conversion efficiency of photovoltaic products from material expansion.

The company’s self-developed 武汉夜生活网 high-efficiency N-type DW silicon wafer has a conversion efficiency of 26%, and the high-efficiency N-type single crystal silicon wafer has a global market share of more than 70%.

Subsequently, a preliminary confirmation of the N-type silicon wafer technology route was made, and the increase in the penetration rate of N-type products may bring about a new round of excess revenue.

Dongfang Huansheng is the controlling shareholder and owns the patent for the shingle module.

In 2019, the company obtained 40% equity of Dongfang Huansheng through auction, and gradually held 77% of Dongfang Huansheng, becoming Donghuan Huansheng’s controlling shareholder.

Dongfang Huansheng, as the only manufacturer in China that has obtained Sunpower’s legal copyright license, is committed to the production of highly efficient shingled solar modules with global differentiated competitive advantages.

It is an inevitable trend that high-efficiency internet-driven components are efficient, and Dongfang Huansheng is expected to bring performance growth in the future.

With the layout of semiconductors, the large silicon wafer project is steadily advancing.

In terms of semiconductors, the company has established a demonstration base for fused silicon single crystal industrialization for IGBT, becoming the third company in the world and the first company in China to provide 8-inch fused silicon polished wafers in batches.

In the past three years, the company’s 8-inch wafer sales have grown at a compound growth rate of 188.

59%, sales exceeded 1 million in 18 years, and production and sales remained above 90%.

In 2017, the company and Wuxi Industrial Development Group Co., Ltd. and Jingsheng Mechanical and Electrical jointly invested in the implementation of the “Large Wafer Production and Manufacturing Project for Integrated Circuits.”The production scale of polishing pads is 600,000 pieces / month.

The semiconductor sector is advancing steadily.

Performance forecast: Expected company 2019?
Income in 2021 will be 189.



RMB 990,000, achieving net profit attributable to mother 11.



82 trillion, corresponding to a growth rate of 82.

3% / 53.

7% / 68.

3%, the corresponding PE is 26.



2 times, covering for the first time, giving “overweight” rating.

Risk reminders: 2020 silicon wafer capacity release is higher than expected, silicon wafer price changes are lower than expected; overseas installations are lower than expected; forecast deviations and estimated risks.