Central Shares (002129): Partner with Total to invest in MAXEON to start a new journey of transformation and development

Central Shares (002129): Partner with Total to invest in MAXEON to start a new journey of transformation and development

Event: Announcement of cooperation with Total in investing in MAXEON Corporation Announcement of intention to cooperate with Total in Investing in MAXEON Corporation Announcement of intention to cooperate with Total in Investing in MAXEON Corporation Announces cooperation in cooperation with Total Solar International CorporationThe other solar cell and module business is split to MAXEON, a company incorporated in Singapore.

After the US $ 9.8 billion investment in the spin-off of MAXEON, the company’s shareholding ratio in the target company after the subscription was 28.

8480% and became its second largest shareholder.

The spin-off and capital injection is expected to be completed in the second quarter of 2020.

We believe that the company has a leading edge in semiconductor and photovoltaic crystalline silicon wafers. With this investment, it will cut into photovoltaic downstream battery module replacement in an asset-light and alternative manner, which will continue to drive the company’s 杭州桑拿 performance in the future.
It is estimated that the company’s net profit attributable to its parent in 2019-2021 will be 12.

63/17.

29/23.

91 trillion, corresponding to 0 EPS.

45/0.

62/0.

86 yuan, maintaining the “highly recommended” level.

SunPower is divided into two. MAXEON undertakes the core manufacturing and sales business. SunPower is the world’s leading provider of solar technology. It owns efficient IBC cell production technology and intellectual property rights for shingled modules, but its operating capacity is slightly weak. The spread in China has also led to itsThere are gaps in perception and supply chain.

After the spin-off, MAXEON’s main business will include the original SunPower global production and sales network and patents except the United States and Canada. Its entities mainly include Singapore headquarters and R & D centers, Malaysia and the Philippines battery factories, and Huansheng PV (Jiangsu) Limited.The company has 20% equity, Mexican and French module factories, Swiss sales centers and sales companies in more than ten countries.

SunPower retains sales of modules and power plant operations in the United States and Canada.

MAXEON’s future growth can be expected, the company began to integrate a new journey. In the future, the company’s investment will be used for the expansion and development of the high-efficiency IBC battery modules MAXEON-5 and MAXEON-6 series.

According to reports, SunPower disclosed that the joint venture company MAXEON expects to expand its module production capacity to 5 by 2021.

4GW, including 0.

5GW MAXEON-3, 1.

9GW MAXEON-5 and 3GW P-series components (joint venture with Central).

With the advent of photovoltaic parity on the global scale, the expectations of overseas markets have become more prominent.

In the future, large-scale production layout, operation and sales capabilities will be an important test for domestic manufacturing enterprises.

We believe that using the technical strength of the original SunPower, combined with the production and operation capabilities and supply chain advantages of Central, and Total’s layout, MAXEON is expected to grow into a world-class battery module manufacturer with core technology and intellectual property rights.

The company will also use this cooperation to replace the foundation for the company’s future development.

Risk warning: cooperation progress is lower than expected, competition in overseas markets, efficient battery replacement technology route

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