Recently, PV-Tech released a PV ModuleTech Suppliers Bankability Rating Report (PV ModuleTech), and LONGi was rated as AA, ranking in the list of the Top 4 PV module suppliers in the industry.
PV-Tech said that the past ranking and benchmarking methods for PV module suppliers present some academism. A more mature way is needed in the industry to rank module suppliers. With risks become higher and higher (public utility projects above 100MW become popular in the industry), it is increasingly important to differentiate suppliers. Establishing a more accurate benchmarking platform can provide strong support for investors, banks, project developers and EPC companies to screen potential suppliers, providing clear guidance on the finance and advantages and disadvantages of potential module suppliers.
▲ PV-Tech
The PV ModuleTech Bankability Rating is designed to provide PV module suppliers with a comprehensive and transparent benchmarking; a classified member group is formed without any bias, naive assumptions and multiple pre-set conditions. Its basic function is to properly balance the shares of module manufacturing and business solvency with profitability, financial health, return on assets and risk as the core driving factors.
In the Q3’19 PV ModuleTech Bankability Rating Report, only four PV module suppliers are rated AA–the most bankability, and LONGi is among them. Only 14 PV module suppliers (hundreds in the industry) are rated as B and above.
▲ Q3’19 PV ModuleTech Suppliers Bankability Scores
©PV-Tech
The other PV module suppliers (a total of hundreds) are classified as “speculative” (CCC, CC, and C) and their large solar projects are classified as “Risk”. ‘C’ companies usually suffer the following problems such as limited capacity, their shipments inconsistent with the industrial overall growth rate and the terrible financial situation.
PV-Tech believes that the year-end and quarterly trends of the four AA-rated PV module suppliers show their status from the bankability perspective. The quarterly score (the previous 12 quarters) or the year-end rating (six years until the end of 2019) is most useful. Choosing annual or quarterly trends of each company depends on the program which can best reveal the change during the given period.
▲ the year-end and quarterly trends of the four AA-rated PV ModuleTech suppliers ©PV-Tech
PV-Tech also interprets the bankability score and rating of LONGi based on this.
As a high-growth supplier, its development trend shows that it has jumped to the AA level since entering the industry for five years. Compared with other AA companies, the relative growth trajectory indicates that 2020 will be the year that it will eventually gain global brand awareness as the PV module supplier.
The PV tech rating fully reflects the high recognition and affirmation of industry analysts, financial institutions and the market for LONGi, and gives optimistic predictions on its future development trend. LONGi will insist on the development of reliable and leading photovoltaic products with technology research and development, and contribute value to customers around the world with sunlight.
