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TCL Zhonghuan Renewable Energy Technology Co Ltd Class A 002129

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Stock XSHE Rating as of
CNY 10.44 +0.48 (4.82%)
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As of Delayed Price Closed
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Company Report

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Falling Solar Wafer Prices Weigh on TCL Zhonghuan

Cheng Wang

TCL Zhonghuan strives to achieve global leadership in solar silicon wafer production. As of December 2022, Zhonghuan’s solar wafer capacity has overtaken longtime champion Longi Green Energy to become the largest in the world. After years of investment in smart manufacturing, Zhonghuan has built the most automated factories in the industry. This helps increase output and reduce costs.

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Price vs Fair Value

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002129 is trading at a 49% discount.
Price
CNY 9.97
Fair Value
CNY 35.30
Uncertainty
High
1-Star Price
CNY 39.79
5-Star Price
CNY 93.40
Economic Moat
Szgkr
Capital Allocation
Jdlkpkwf

Bulls Say, Bears Say

Bulls

Zhonghuan will generate stronger margins than peers since it has little legacy capacity.

Bears

Zhonghuan’s capacity is too large, and it must price aggressively to increase utilization rate in the current overcapacity environment.

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Trading Information

Previous Close Price
CNY 9.96
Day Range
CNY 9.80–10.55
52-Week Range
CNY 9.57–33.66
Bid/Ask
CNY 10.43 / CNY 10.44
Market Cap
CNY 42.21 Bil
Volume/Avg
158.6 Mil / 106.3 Mil

Key Statistics

Price/Earnings (Normalized)
6.21
Price/Sales
0.64
Dividend Yield (Trailing)
0.93%
Dividend Yield (Forward)
0.93%
Total Yield
0.96%

Company Profile

TCL Zhonghuan is the second largest solar silicon wafer producer in China. It produced about 68.3 GW solar wafers in 2022, accounting for 19.1% of total production in China. Solar wafers contributed 76% of revenue and 81% of gross profit in 2022. Zhonghuan is also a leading domestic semiconductor silicon wafer producer.
Sector
Technology
Industry
Semiconductor Equipment & Materials
Stock Style Box
Large Core
Total Number of Employees
17,390
Website
http://www.tjsemi.com

Competitors

Valuation

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Metric
002129
300274
601012
Price/Earnings (Normalized)
 6.2116.938.57
Price/Book Value
 0.965.771.94
Price/Sales
 0.642.291.02
Price/Cash Flow
 9.5417.0510.50
Price/Earnings
002129
300274
601012

Financial Strength

Metric
002129
300274
601012
Quick Ratio
 0.980.890.96
Current Ratio
 1.541.561.38
Interest Coverage
 1.8534.7536.16
Quick Ratio
002129
300274
601012

Profitability

Metric
002129
300274
601012
Return on Assets (Normalized)
 −0.55%12.79%10.17%
Return on Equity (Normalized)
 −1.64%38.92%23.39%
Return on Invested Capital (Normalized)
 −0.03%27.88%19.81%
Return on Assets
002129
300274
601012
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