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For the stock prices of most A-share photovoltaic companies, a relatively obvious trend turning point came in early July.

According to statistics from 21st Century Business Herald, as of press time, 28 photovoltaic companies have disclosed the progress of this round of repurchases, with a total repurchase amount of more than 4.8 billion yuan. Among them, photovoltaic leaders such as Tongwei Co., Ltd. (600438.SH), Sungrow Power Supply (300274.SZ), Trina Solar (688599.SH), and JA Solar (002459.SZ) have all implemented repurchases, with the highest monthly amount reaching 288 million yuan.

In fact, photovoltaic companies have continued to repurchase shares, and the market's negative sentiment towards the industry's fundamentals has eased slightly, and the share prices of some photovoltaic companies have stopped falling and rebounded since July.

Some companies repurchased more than 280 million yuan in July

Recently, some photovoltaic companies have disclosed the progress of their stock repurchase plans. According to statistics from the 21st Century Business Herald reporter, as of press time, 28 A-share photovoltaic companies have disclosed their repurchases since July this year, with a total repurchase amount of 385 million yuan that month. The cumulative amount of repurchases by these 28 photovoltaic companies in this round so far is 4.813 billion yuan.

Judging from the share repurchase plan announcements released by various listed companies, the purpose of their repurchased shares is mainly for employee stock ownership plans, employee equity incentives or equity incentives, reduction of registered capital, conversion of company convertible bonds, etc.

In this round of repurchase, Tongwei Co., Ltd. made the "biggest move".

On April 30 this year, Tongwei Co., Ltd. issued an announcement stating that it plans to use 2 billion to 4 billion yuan to repurchase the company's shares through centralized bidding transactions within 12 months for the implementation of employee stock ownership plans or equity incentives.

According to the announcement, as of July 31 this year, the company had repurchased a total of 65.1849 million shares, with a total transaction amount of 1.325 billion yuan. In July, Tongwei Co., Ltd. also became the photovoltaic company with the highest monthly repurchase amount, reaching 288 million yuan.

While repurchasing shares and announcing share increases, a reporter from 21st Century Business Herald noticed that some leading photovoltaic companies have spent a lot of money to maintain stock price stability since the beginning of this year.

Before Tongwei Co., Ltd. repurchased the shares, on January 31 this year, the company announced that its controlling shareholder Tongwei Group would increase its holdings of the listed company by 1 billion to 2 billion yuan. In June this year, Zhong Baoshen, chairman of Longi Green Energy (601012.SH), increased his holdings of the company's shares twice, with a cumulative increase of 58 million yuan.

However, under the current market conditions, repurchase is still a common means for most photovoltaic companies to stabilize their stock prices. In addition to Tongwei Co., Ltd. and Longi Green Energy, in this round of repurchase, the repurchase amount of photovoltaic leaders such as Sungrow Power Supply, Canadian Solar (688472.SH), TCL Zhonghuan (002129.SZ), and JA Solar is expected to exceed 500 million yuan. Among them, Canadian Solar implemented a repurchase in July, with an amount of 18 million yuan.

Overall, eight companies have already reached the minimum amount of the current repurchase plan. However, some companies have already reached the halfway point of the repurchase plan and are still far from the minimum amount.

In October 2023, TCL Zhonghuan released a repurchase plan of 500 million to 1 billion yuan. As of now, the company's repurchase amount is only 63 million yuan, and the repurchased shares account for 0.1237% of the total share capital. Combined with previous announcements, TCL Zhonghuan's only repurchase in this round occurred on January 30 this year. It repurchased about 5 million shares through the Shenzhen Stock Exchange system in a centralized bidding transaction, with the lowest price of 12.47 yuan per share.

As of press time, TCL Zhonghuan’s share price was below 8.20 yuan per share.

The stock prices of most photovoltaic companies show signs of recovery

CITIC Securities pointed out in a research report that repurchases are not only in line with the realization of the company's financial and strategic goals, but also have a short-term "market protection" effect when the A-share market is weak, which is conducive to boosting market confidence.

Since the second half of 2023, the photovoltaic industry has entered a period of cyclical adjustment, the capital market has also fluctuated accordingly, and the market value of photovoltaic companies has shrunk significantly.

According to industry statistics, as of the end of 2023, the market value of A-share photovoltaic companies has decreased by 3.18 trillion yuan compared with its peak period, a drop of more than 60%.

Therefore, for investors holding photovoltaic stocks, "when will the bottom come" is the most concerned issue.

As far as this round of repurchase is concerned, the stock prices repurchased by almost all photovoltaic companies are still higher than the latest stock prices, but in early July, the stock prices of some photovoltaic companies began to show signs of recovery.

According to statistics from 21st Century Business Herald, among the 108 A-share photovoltaic companies, 52 companies' stock prices rose in July, accounting for nearly half. The monthly stock price increase of 15 companies exceeded 10%, mainly photovoltaic inverter companies. For example, Jinlong Technology (300763.SZ), Aero Energy (688717.SH), Deye Shares (605117.SH), Sineng Electric (300827.SZ), Yuneng Technology (688348.SH), Hemai Shares (688032.SH), and Sungrow Power Supply (300274.SZ) rose by 53.10%, 51.10%, 30.48%, 30.18%, 20.80%, 15.45%, and 10.96% respectively in July.

In addition, the stock prices of some ST companies were hyped in July - *ST Jiayu (300117.SZ) and ST Lingda (300125.SZ) saw monthly increases of 71.25% and 44.51% respectively.

It is undeniable that when the bottom of the A-share photovoltaic sector will arrive is closely related to when the industry turning point will appear.

Since August, the price of the photovoltaic industry chain has continued to bottom out, and the prices of silicon materials and silicon wafers have been running at low levels. According to data from the Silicon Branch of the China Nonferrous Metals Industry Association, since August, the price of N-type polysilicon has risen slightly, and the average transaction price of various types of silicon wafers has temporarily remained strong.

Pacific Securities' latest research report points out that the mid-term bottom of the photovoltaic industry will soon come. "Silicon material production decreased in August, and terminal production is expected to increase by 50GW. Combined with the export volume of battery cells, inventory is expected to improve significantly. The production capacity of second- and third-tier silicon material companies that have stopped production for maintenance may gradually turn into complete suspension of production, and production capacity is expected to be deeply cleared."