Bocom Intl released a research report stating that it has lowered the target price of Xinyi Solar (00968) by 9.3%, from HKD 4.51 to HKD 4.09, while maintaining a 'neutral' rating. Since July, the price of photovoltaic glass has continued to fall. At the current prices, the bank calculates that apart from the company and Flat Glass (06865), other enterprises are severely loss-making. The industry's daily melting volume at the end of July decreased by 4.1% month-on-month. The industry has entered a stage of capacity clearance.
The bank pointed out that the company achieved a net profit attributable to the parent of HKD 1.96 billion in the first half of 2024, an increase of 41% year-on-year, slightly exceeding the median forecast. The revenue of the photovoltaic glass division increased by 4.8%, and the gross margin of the division increased by 6.3 percentage points year-on-year, to 21.5% on a low base due to cost reduction. Due to the increase in the abandonment rate and the proportion of market electricity, the gross margin of the photovoltaic power generation division decreased 4.9 percentage points year-on-year to 65.5%.