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Photovoltaic concept stocks pull back, Xinyi Light Energy maintains a high of more than four months
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Decision Analysis]: Photovoltaic concept stocks have fallen, Xinyi Light Energy maintains a high of more than four months." Hope it will be helpful to you! The original content is as follows:
XM Hong Kong Stocks: Photovoltaic concept stocks have fallen back, Xinyi Solar Energy maintains a high of more than four months
XM Hong Kong Stocks: Today, Hong Kong stocks stopped their recent strong consecutive rises, adjusting from their three-year and eight-month highs. However, among blue-chip stocks, Xinyi Solar Energy (00968), which rose more than 7% yesterday, performed the best at opening this morning, continuing yesterday's upward trend, but its performance was restricted by the market. The increase further narrowed to 0.6% in the afternoon, and refreshed its high for more than four months intraday. Other photovoltaic concept stocks also partially surrendered, with Xinte Energy (01799) falling more than 1% during the session and Folite Glass (06865) giving up 0.6%.
▲XM chart
Earlier this week, Xinyi Solar Energy (00968) issued a profit warning, but its performance expectations still exceeded the expectations of some institutions, reflecting the improvement of its performance in the first half of the year. Under the current potential supply-side reform, leading solar glass xmspot.companies will be in a more favorable position. Xinyi Solar Energy will announce its results on August 1, and its stock price will usher in another important node.
Xinyi Light Energy expects that the xmspot.company's equity holders' xmspot.comprehensive net profit attributable to 56% to 66% year-on-year in the first half of 2025. The expected decrease in net profit in the first half of 2025 is mainly due to the following reasons: the average selling price of photovoltaic glass products fell sharply xmspot.compared with the first half of 2024, mainly due to the oversupply of photovoltaic glass products, and the sales growth and the decline in raw material and energy costs caused by the surge in photovoltaic installed capacity in China have not offset the decline; and the impairment losses of several photovoltaic glass production facilities have been confirmed, which have been suspended.No operation or maintenance or renovation is underway. Xinyi Glass (00868), the same-related xmspot.company, is expected to reduce net profit in the first half of this year by 55% to 65% from RMB 2.5093 billion in the same period last year. The revenue and gross profit of the Group's float glass business continued to decline year-on-year, due to the sharp decline in the number of new property projects in China.
Bank Securities expects that due to the news of production cuts and anti-internal policies, Solar Glass shares have risen by about 30% since the end of June. However, the price of 2mm solar glass has continued to fall to 10.5 to 10.8 yuan per square meter in the past two weeks, which is the level of losses that the entire industry will suffer. The bank believes that even if demand returns to normal in 2026, potential oversupply will still hinder profit margins. Unless a mandatory production cut similar to that during the supply reform period from 2016 to 2017 is implemented, it will be difficult to change the oversupply pattern.
The current price of photovoltaic glass is at an ultra-low level. Looking ahead to the second half of the year, improvement in supply and demand is still expected to support the price recovery. The decline in natural gas costs and the profit margins of glass giants with high profit elasticity are expected to be restored. The government has recently strengthened the rectification of low-price xmspot.competition in the photovoltaic industry and promoted the clearance of backward production capacity. Leading xmspot.companies such as Xinyi Solar are expected to benefit from the increase in market share, so we need to pay attention to the pace of policy implementation.
If Xinyi Light Energy's performance in early August meets expectations and the management releases a signal of price recovery in the second half of the year, the stock price is expected to continue to rebound and hit a high in March. However, if the impairment scale exceeds expectations or demand recovery is less than expected, there is a risk of a pullback. In the medium and long term, industry integration is accelerated and policy support is superimposed. Xinyi Solar, as the leader, may benefit from the increase in concentration, but it is necessary to pay attention to the influence of upstream price fluctuations such as silicon materials and xmspot.components on the profits of photovoltaic glass.
The above content is all about "[XM Foreign Exchange Decision Analysis]: Photovoltaic concept stocks have fallen back, Xinyi Light can maintain a high of more than four months". It is carefully xmspot.compiled and edited by the XM Foreign Exchange editor. I hope it will be helpful to your trading! Thanks for the support!
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