Large-scale PV concession bidding will start

Large-scale PV concession bidding will start




Most plants can all participate in the concession tender this case "lose out"

Because of the world's largest PV market - ahead of the German consumer market demand, China and Taiwan PV companies in the third quarter continued strong orders. It is noteworthy that China will start in the third quarter of 2010, eight provinces of the west concession bidding 280MW PV case and 50MW solar thermal power concession bidding case, the size of 10MW to enlarge several times higher than in 2009, is expected to build over two years completed, field operating time was 25 years.

We believe that, due to strong demand in overseas markets in 2010, component manufacturers repeat in 2009 the case of Dunhuang concession bargain should not happen, so winning this than the 2009 price would be picked up 1.09 yuan, in order to maintain a reasonable manufacturer return on investment is estimated at 1.1-1.3 yuan. We believe that most plants can all participate in the concession tender in this case some sort of relief. We expect the Chinese PV market in 2010 up to 300MW.

In addition, we expect continued increase in production capacity, making the price of polysilicon still test a low space. The current market price of polysilicon only stable at 50-55 dollars, is expected to offer the third quarter will continue to maintain the status quo, offer long-term polysilicon will continue dropping. A large number of shares in listed companies involved in most of polysilicon production is facing a shortage of cost-competitive, is not involved in short-term opportunity.

It is noteworthy that investors the world's largest PV market in Germany early in 2011 continues to lower its rates after the subsidy impact on demand worries, Jiashang the euro will also adversely affect Nokia earnings photovoltaic business, we maintain photovoltaic industry "neutral" rating.



Investment Recommendations

Investment direction in 2010, A shares the upstream polysilicon production costs are still competitive advantages in the polysilicon under the offer have an opportunity to continue dropping, it still isn'ta good opportunity. Component in photovoltaic cells, promising research can provide low-cost solutions to enterprises, the high-powered three-An optical concentrator technology and downstream integration of CSG's previous development strategy are more likely, with the results of other Haitong Group Support has also to note that we also optimistic about the key production processes necessary equipment, supplies (such as silicon wafer cutting fluid cutting required) and BOS components (such as photovoltaic power inverter), the relative stability of its huge profits, is the better investment direction We like Oak shares, shares of Wing Shun, Dragon Optical. Light and heat generating part, Higashiyama Precision shares with three flowers are light and heat has been involved in the system, with space themes speculation.

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