Trina Solar: the leader of the new energy segment that is exploding, with strong long-term certainty

Trina Solar's history of making a fortune is amazing. Gao Jifan, the founder of Trina Solar, experienced several gambles. First, he gave up the opportunity to study for a doctor's degree at Berkeley University in the United States, went to Guangdong to start a chemical product business, and then he made a big profit by acting as an agent for aluminum curtain wall, and then he entered the photovoltaic power generation field to establish Trina Solar.

From the establishment of Trina Solar in 1997 to 2023, Trina Solar has been deeply engaged in the photovoltaic industry for more than 25 years. Now it has become a global photovoltaic module giant, once ranking the leading position in the global shipment volume, and now it remains in the top three position all the year round.

Thanks to the explosion of the industry, the annual shipments of Trina Solar also increased from about 2GW 10 years ago to more than 40GW in 2022, an increase of more than 20 times. Last year, the cumulative global shipments exceeded 100GW. The performance has also increased rapidly in the past few years. In 2017-2021, the company's revenue increased from 26.159 billion yuan to 44.48 billion yuan, and the net profit attributable to the parent company increased from 542 million yuan to 1.804 billion yuan, with a compound annual growth rate of 14.19% and 35.07% respectively.

According to the performance forecast in 2022, it is estimated that the net profit attributable to the parent company will reach 3.42-4.02 billion yuan, up 90% - 123% year on year, and the non-net profit will be deducted from 3.21-3.8 billion yuan, up 107% - 146% year on year. Among them, the net profit attributable to the parent company in Q4 was 1.02-16.2 billion yuan, with a year-on-year increase of 57% - 150%, a month-on-month increase of - 10% - 43%, and the non-net profit deducted was 97-156 million yuan, with a year-on-year increase of 69% - 171%, and a month-on-month increase of - 11% - 43%.

In Q4, the company accrued an impairment loss of 800 million to 900 million yuan for power stations and assets, plus exchange loss of about 200 million yuan. Fortunately, investments such as silicon wafers have made an income of about 800 million to 1 billion yuan, basically hedging the impairment and exchange loss.

Overall, the performance basically meets the market expectations.

Considering the high price of upstream silicon materials in 2022, it is very good to achieve such performance growth as a downstream component manufacturer.

As the upstream silicon material price is expected to usher in a turning point, the industrial chain profit is expected to be redistributed and transferred to the middle and downstream links, and the component link is expected to rise in volume and price this year.

The competition among PV manufacturers mainly focuses on technology research and development, capacity scale, cost, channel brand and other aspects. As one of the oldest companies in the industry, Trina Solar has also maintained sufficient competitive advantages in these aspects.

 
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