According to Zhicheng Caijing APP, photovoltaic stocks continued to fall. As of press time, Xinyi Solar (00968) fell 6.11% to HKD 3.69; Irico Newenergy (00438) fell 5.45% to HKD 3.12; Flat Glass (06865) fell 5.39% to HKD 10.88; Xinyi Glass (00868) fell 2.34% to HKD 8.36.
Central China Securities pointed out that due to the overcapacity in the industry, the price of photovoltaic main materials has dropped significantly. The price of multiple links has fallen below the cash cost. Continuous layoffs, line shutdowns, and reduced operating rates have occurred in photovoltaic companies, and the industry has entered the stage of capacity reduction. Due to the reversal of profit expectations in the photovoltaic industry, the suspension and postponement of projects have occurred one after another. Enterprises will continue to actively reduce capital expenditures and slow down the pace of development to get through the industry's cold winter. The photovoltaic industry has strong cyclical and growth attributes. At present, the industry has entered a period of deep adjustment, and the market will gradually eliminate backward production capacity.
In terms of polysilicon, prices have fallen below the cash cost, and there is a strong expectation of overcapacity reduction in the industry. As for components, the low point of the cycle is waiting to turn around, and the market share of head integrated manufacturers is expected to increase. Due to fierce competition in the domestic market, photovoltaic module prices have fallen sharply, and coupled with factors such as inventory impairment and fixed asset impairment, enterprises have shown significant performance decline or losses. In terms of photovoltaic glass, investment in new photovoltaic glass projects has clearly slowed down, and the long-term "L"-shaped trend of product prices will accelerate the market's clearing.