Zhitong Financial App learned that PV glass stocks declined collectively. As of press release, Follett Glass (06865) fell 5.05% to HK$15.8; Xinyi Solar (00968) fell 4.92% to HK$5.02; Xinyi Glass (00868) fell 0.97% to HK$9.17; and Fuyao Glass (03606) fell 0.69% to HK$35.8.
CBI released a research report saying that Xinyi Solar's stock price has basically reflected pessimistic expectations, but maintains a “neutral” rating, mainly because competition in the industry has not abated. However, there are recent market rumors that financing for the A-share photovoltaic industry has been clearly tightened. If confirmed later, it is expected that the market's pessimistic expectations of a supply blowout will be reversed, and there is an opportunity to push the bank's rating up.
The bank pointed out that as low-cost new production capacity continues to be put into production, it is expected that the industry will still face fierce price competition next year, but the capacity warning mechanism will prevent serious long-term overcapacity, and the relationship between supply and demand is expected to improve markedly after backward production capacity is cleared.
