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Original Title: Meet “Carbon Neutral” Development, Hillhouse New Energy Territory Expands
Hillhouse Capital’s ambition to follow the new energy path is highlighted.
On the night of December 20, Longji shares announced that Hillhouse Capital intends to transfer 6% of the shares held by shareholder Li Chunan, and the total consideration for the transaction is 15.841 million yuan.
Hillhouse Capital invested heavily in Longji stock, once again igniting enthusiasm for the PV industry in the secondary market.
On December 21, Longi’s daily limit was raised to 85.42 yuan per share, and its share price hit a record high. The photovoltaic sector also exploded. The entire sector soared more than 5%. JA Solar’s daily limit, Flat, Maiwei, Kstar, Sunshine Energy and Tongwei shares increased by more than 6%.
In an interview with a 21st Century Business Herald reporter on the same day, an insider on Longi’s stock said, “Hillhouse’s equity stake is an acknowledgment of the company’s competitive advantage and value. Hillhouse follows the concept of value. In the long term, not a pure financial investment, but pay more attention to the photovoltaic industry. With room for development, I believe that the company can create value for the industry and society. “
As the leading investment institution in the Chinese capital circle, Hillhouse Capital’s investment dynamics has a role as a palette in the market. Before focusing on Longji, the national leader in photovoltaics, Hillhouse has successively invested in leading new energy companies such as Ningde Times, Enjie, Weilai Automobile, Xiaopeng Automobile and Ideal Automobile.
Analysts noted that Hillhouse Capital’s investment track record is closely related to China’s clear “carbon neutral” roadmap. On the basis of promoting further reduction of energy consumption in various industries, photovoltaic (wind energy) and new energy vehicles are expected to usher in new developments.
High position
According to the announcement, Longji’s shareholder Li Chunan intends to transfer 226.31 million shares of the company he owns to Hillhouse Capital via transfer agreement, representing 6.00% of the company’s total share capital. company. The capital change is that Li Chunan reduced his stake in publicly traded companies due to his own financial arrangements. At the same time, it plans to continue reducing stakes through centralized tenders and block trading systems in the next 12 months.
Regarding the reasons for investing in Longji shares, Hillhouse Capital stated that it is based on confidence in the stable and sustainable development of the listed company in the future and in the recognition of the value of the listed company. It intends to obtain shares of the listed company through this equity change to obtain income from the revaluation of shares. Hillhouse Capital currently does not have a specific plan to increase its holdings of shares of listed companies in the next 12 months.
LONGi’s related referral said in an interview: “Currently, there is no specific cooperation plan with Hillhouse, it is just the equity participation stage.”
Regarding Hillhouse’s stake, Bu Rixin, a partner at Chuangdao Investment Consulting, said in an interview with a 21st Century Business Herald reporter, “Hillhouse’s investment is based on the transfer of existing shares. For Hillhouse Capital, it has been added a valuable asset to the investment landscape, for LONGi, although it has not received direct financial support, it can be recognized by a leading investment fund like Hillhouse Capital, and it also has a very good brand effect. “
What worries the market is that Hillhouse Capital’s investment in Longji shares is a high position. The transfer price of this transaction is reported to be 70 yuan per share, and the closing price of Longji shares on the most recent trading day is 77.65 yuan per share, and the transfer price is slightly higher than 10% of the share price. From the perspective of the trend of Longi shares this year, the increase for the year has exceeded 200%, which is close to the all-time high for Longi shares. Hillhouse is equivalent to the transfer of 6% of its shares when the latter has a market value close to 300 billion.
Regarding Hillhouse’s strong bet on this “high position,” some market participants believe that “Hillhouse Capital’s value investment is not a simple value investment. It does not look at PB’s net assets and simple growth, but the broader pattern conforms to the historical trend. Investment value. “
In fact, not only LONGi, but also many PV stocks, including JA Solar, Maiwei, Sungrow and Tongwei, are at the top of their valuations. How do market participants view the valuation of the PV industry?
Yan Ping, Investment Manager of Caitong Fund Account Investment Department, said in an interview: “The PV industry has a low valuation in the past. With some increase this year, the valuation of the sector is relatively high compared to the history”. The reform has not yet been completed and is more dependent on policy subsidies, and the valuation given will be discounted. As parity comes online, whether or not the above valuation discounts are reasonable, the market does not seem to adapt to the adjustment of the entire valuation system. Specifically, we It is believed that the valuation of the leading companies in the sector is fixed in the next year or less than 30 times, and there are still certain advantages in the horizontal growth sector compared to other subsectors ”.
Follow the path “carbon neutral”
Since the beginning of this year, Hillhouse Capital has made frequent moves and has successively launched a series of PV leaders to fully deploy the PV industry.
Another leader of the photovoltaic concept, Tongwei shares just announced the completion of a fixed increase of 5.983 billion yuan. Hillhouse Capital is on the subscription list, and the subscription amount is close to 500 million yuan.
In early September, Hillhouse Capital also subscribed for an additional 230 million shares issued by photovoltaic glass maker Xinyi Solar for HK $ 580 million.
From a broader perspective, Hillhouse Capital has entered the new energy field many times and has successively invested in leading new energy companies such as Ningde Times, Enjie, Weilai Automobile, Xiaopeng Automobile, and Ideal Automobile.
“Hillhouse values the long-term competitiveness of the photovoltaic industry. In the long term (20-30 years), photovoltaics will become the main energy in the power system. Current market sentiment also puts more emphasis on photovoltaics. . Hillhouse has conducted an in-depth assessment and tends to buy industries. Leader, “said Wang Ge, the new chief analyst at China Securities Investment & Investment Corporation.
An industry insider who understands Hillhouse’s investment style told reporters: “Of the above actions, Hillhouse is primarily in the ‘carbon neutral’ arena.”
The previous 2020 Central Economic Work Conference noted that eight key tasks will be accomplished next year, such as carbon spike and carbon neutrality. China’s carbon dioxide emissions are striving to peak by 2030 and strive to achieve carbon neutrality by 2060. We must quickly formulate an action plan to peak carbon emissions by 2030 and support the places where conditions permit. It is necessary to accelerate the adjustment and optimization of the industrial structure and energy structure, promote the consumption of coal to reach its peak as soon as possible, vigorously develop new energy sources, accelerate the construction of a national market of trading rights of energy use and carbon emission rights, and improve the dual control system of energy consumption.
In this context, increasing and accelerating the development trend of clean low-carbon energies led by photovoltaics has become a market consensus.
“New energy is a future trend. Compared to nuclear power and wind power, photovoltaic power is a relatively gentle way to generate electricity, without high intensity secondary pollution, and is relatively safe. Historically, the cost of the Photovoltaic power generation has been declining. Photovoltaic power is closely related to semiconductors. The latter has a great ability to continuously update the attributes of its products. The construction of photovoltaic power plants is very simple and does not require many personnel to maintain it after its completion, “said Wang Ge.
Carbon neutrality is of great benefit to the development of the new energy industry. The IACC predicts that by 2060, the domestic installed capacity of wind power, photovoltaic power generation and nuclear power will increase to 1,660 GW, 7,332 GW and 386 GW compared to 2019, and the installed energy storage capacity will reach almost 30%. of installed electricity capacity. Demand for photovoltaic installations triggered by clean hydrogen production will accelerate after 2040 and reach a peak after 2050, contributing almost 7,400 GW of additional installed capacity. The previous total installed capacity demand will generate around RMB 55 trillion in domestic green energy investment space from 2020 to 2060. Superimposed on the demand for new PV installations abroad, the domestic clean energy industry will benefit from a total of 102 trillion RMB in investments in green energy.
“Carbon neutrality is not only a transformation of the energy industry, it also affects all aspects of the industrial field. Investment in technology for the replacement of electrical energy is expected to increase, especially the replacement of hydrogen energy. and carbon sequestration “. Take a concerted approach to achieving the goal of carbon neutrality, “noted the CICC.
(Author: Zhang Sainan Editor: Zhu Yimin)
