Abstract After two years of overcapacity and trade disputes, the photovoltaic industry has recently received strong policy support from the government, leading to a gradual recovery. The performance of several listed companies in the third quarter shows an improvement in net profit compared to the same period last year. Institutional investors and private funds are starting to show interest in PV stocks, signaling a potential shift in market sentiment.
Increased Subsidies for Photovoltaic Power Generation
Since the beginning of this year, the photovoltaic industry has faced challenges such as overcapacity, supply chain disruptions, and EU anti-dumping measures, which led to widespread shutdowns across the industry. In the first half of the year, only 3 GW of capacity was completed, far below the planned 10 GW for the full year.
However, with the determination of the minimum export price to the EU and the removal of punitive tariffs, the industry reached a bottoming-out phase. The government also introduced new supportive policies, encouraging the development of distributed photovoltaics and power plant construction. After two years of stagnation, the domestic solar industry is now showing signs of recovery.
At this critical moment, the government’s renewed focus on green energy is expected to accelerate the industry's rebound.
At the end of August, the State Council issued a notice titled “Notice on Playing the Role of Price Leverage to Promote the Healthy Development of the Photovoltaic Industry,†setting a subsidy rate of 0.42 yuan per kilowatt-hour—higher than the previous market expectation of 0.35 yuan/kWh.
This week, the 13th China Photovoltaic Conference took place. According to reports, the “Opinions on Financial Services for Promoting Distributed PV Development†jointly drafted by the National Energy Administration and the National Development Bank is expected to be released soon. The new financial regulations will expand the scope of support to include power companies, distributed generation projects, and individual households, with credit lines ranging from 50,000 to 500,000 yuan.
PV Companies’ Performance Turning Point
With policy support and a recovering market, many listed PV companies have seen a significant improvement in their financial results. According to data from iFinD, out of 23 listed solar-related companies that announced their Q3 earnings forecasts, 9 are expected to see year-on-year profit growth, while 3 are projected to turn from losses to profits.
For example, Zhonghuan has been transitioning into the new energy sector. With the industry recovery and increased shipments of high-efficiency wafers and joint venture PV power plants, its net profit is expected to rise by 1,692% to 2,140%.
Meanwhile, Yijing Optoelectronics and Haitong Group have received approval from the CSRC for their asset restructuring, which is expected to be completed by year-end. Once completed, the company will become the first A-share listed firm with a fully integrated PV industry chain.
Longji, the world's largest monocrystalline silicon wafer manufacturer, reported a 61% year-on-year increase in sales of monocrystalline silicon wafers, with a net profit of 20.95 million yuan—46.84% of its annual target.
ST Super Day also saw two consecutive daily limits. It is expected that the gross margin will improve significantly in the first three quarters, and the company is actively expanding upstream and downstream in the supply chain, creating new growth opportunities.
Institutional Investors Are Jumping In
The performance turnaround has attracted attention from institutional investors. According to China Daily News, E Fund, Huashang, and ICBC Credit Suisse have added shares of Longcang in the second quarter. E Fund has become the sixth-largest tradable shareholder with over 8 million shares.
Hairun Photovoltaic has become a favorite among Xingquan Fund. According to the semi-annual report, four Xingquan products hold a total of 180.74 million shares, with more than 15 million shares added in the second quarter. Additionally, Xingquan has also taken a position in Jingyi Optoelectronics, becoming the tenth-largest shareholder. Despite not yet realizing significant gains, the fund continues to accumulate shares.
Ancai High-Tech’s semi-annual report shows that both China Investment Fund and Wang Yawei have entered the stock. Huaxia Renaissance and Huaxia Strategy each hold 3.5 million and 2.5 million shares respectively, totaling 6 million shares. Wang Yawei also opened a position of 1.57 million shares. Although the stock had been relatively stagnant, it surged after hitting a daily limit on June 17, reaching a peak of 6.12 yuan on July 24—a 61.29% increase in just 27 trading days.
Since the beginning of this year, the photovoltaic industry has faced challenges such as overcapacity, supply chain disruptions, and EU anti-dumping measures, which led to widespread shutdowns across the industry. In the first half of the year, only 3 GW of capacity was completed, far below the planned 10 GW for the full year.
However, with the determination of the minimum export price to the EU and the removal of punitive tariffs, the industry reached a bottoming-out phase. The government also introduced new supportive policies, encouraging the development of distributed photovoltaics and power plant construction. After two years of stagnation, the domestic solar industry is now showing signs of recovery.
At this critical moment, the government’s renewed focus on green energy is expected to accelerate the industry's rebound.
At the end of August, the State Council issued a notice titled “Notice on Playing the Role of Price Leverage to Promote the Healthy Development of the Photovoltaic Industry,†setting a subsidy rate of 0.42 yuan per kilowatt-hour—higher than the previous market expectation of 0.35 yuan/kWh.
This week, the 13th China Photovoltaic Conference took place. According to reports, the “Opinions on Financial Services for Promoting Distributed PV Development†jointly drafted by the National Energy Administration and the National Development Bank is expected to be released soon. The new financial regulations will expand the scope of support to include power companies, distributed generation projects, and individual households, with credit lines ranging from 50,000 to 500,000 yuan.
PV Companies’ Performance Turning Point
With policy support and a recovering market, many listed PV companies have seen a significant improvement in their financial results. According to data from iFinD, out of 23 listed solar-related companies that announced their Q3 earnings forecasts, 9 are expected to see year-on-year profit growth, while 3 are projected to turn from losses to profits.
For example, Zhonghuan has been transitioning into the new energy sector. With the industry recovery and increased shipments of high-efficiency wafers and joint venture PV power plants, its net profit is expected to rise by 1,692% to 2,140%.
Meanwhile, Yijing Optoelectronics and Haitong Group have received approval from the CSRC for their asset restructuring, which is expected to be completed by year-end. Once completed, the company will become the first A-share listed firm with a fully integrated PV industry chain.
Longji, the world's largest monocrystalline silicon wafer manufacturer, reported a 61% year-on-year increase in sales of monocrystalline silicon wafers, with a net profit of 20.95 million yuan—46.84% of its annual target.
ST Super Day also saw two consecutive daily limits. It is expected that the gross margin will improve significantly in the first three quarters, and the company is actively expanding upstream and downstream in the supply chain, creating new growth opportunities.
Institutional Investors Are Jumping In
The performance turnaround has attracted attention from institutional investors. According to China Daily News, E Fund, Huashang, and ICBC Credit Suisse have added shares of Longcang in the second quarter. E Fund has become the sixth-largest tradable shareholder with over 8 million shares.
Hairun Photovoltaic has become a favorite among Xingquan Fund. According to the semi-annual report, four Xingquan products hold a total of 180.74 million shares, with more than 15 million shares added in the second quarter. Additionally, Xingquan has also taken a position in Jingyi Optoelectronics, becoming the tenth-largest shareholder. Despite not yet realizing significant gains, the fund continues to accumulate shares.
Ancai High-Tech’s semi-annual report shows that both China Investment Fund and Wang Yawei have entered the stock. Huaxia Renaissance and Huaxia Strategy each hold 3.5 million and 2.5 million shares respectively, totaling 6 million shares. Wang Yawei also opened a position of 1.57 million shares. Although the stock had been relatively stagnant, it surged after hitting a daily limit on June 17, reaching a peak of 6.12 yuan on July 24—a 61.29% increase in just 27 trading days.
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