| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 23.28 | 30 |
| Intrinsic value (DCF) | 9.18 | -49 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 30.21 | 69 |
LONGi Green Energy Technology Co., Ltd. is a global leader in photovoltaic technology and solar energy solutions headquartered in Xi'an, China. Founded in 2000, the company specializes in manufacturing monocrystalline silicon products including ingots, wafers, cells, and modules, serving both distributed power stations and large-scale ground power systems worldwide. As one of the world's largest solar technology companies, LONGi operates in the semiconductor sector with a focus on renewable energy infrastructure. The company has established itself as a vertically integrated manufacturer, controlling production from silicon materials to finished solar modules. With the global transition toward clean energy accelerating, LONGi plays a critical role in the solar value chain, supplying high-efficiency monocrystalline products that are essential for solar power generation. The company's extensive R&D investments and manufacturing scale position it as a key enabler of the global renewable energy transition.
LONGi Green Energy presents a high-risk, high-potential investment opportunity in the volatile solar technology sector. The company's negative net income of -CNY 8.62 billion and negative operating cash flow of -CNY 4.72 billion for the period raise significant concerns about near-term profitability and cash generation despite substantial revenue of CNY 82.58 billion. The solar industry faces intense price competition and cyclical demand patterns, exacerbated by global oversupply conditions. However, LONGi maintains a strong market position as one of the world's largest solar manufacturers with substantial cash reserves of CNY 53.16 billion providing some financial buffer. The company's beta of 0.615 suggests moderate volatility relative to the market, but investors should be cautious given the challenging industry dynamics and the company's current negative earnings profile.
LONGi Green Energy's competitive position is defined by its scale, vertical integration, and technological leadership in monocrystalline silicon technology. The company has established one of the most comprehensive manufacturing ecosystems in the solar industry, controlling production from silicon materials to finished modules. This vertical integration provides cost advantages and quality control throughout the value chain. LONGi's focus on monocrystalline technology has positioned it well as the industry has shifted toward higher-efficiency monocrystalline products away from multicrystalline alternatives. However, the company faces intense competition from both Chinese and international manufacturers in an industry characterized by chronic oversupply and price pressures. The solar manufacturing sector requires continuous capital investment for technology upgrades and capacity expansion, creating significant financial pressures. LONGi's large scale provides some protection through economies of scale, but the company must navigate fluctuating raw material costs, changing government policies across different markets, and rapid technological evolution. The current negative profitability reflects the severe competitive pressures in the global solar market, where manufacturers compete primarily on cost and efficiency metrics.