The Zhitong Finance App learned that Xinyi Solar (00968) fell by more than 3%. As of press release, it was down 3.13% to HK$5.26, with a turnover of HK$217 million.
According to the news, HSBC Research recently published a report stating that Xinyi Solar's updated information on inventory, pricing and demand prospects is consistent with the bank's positive interpretation of the photovoltaic industry and the latest industry data, and the company's current business is developing in the right direction. The company's new polysilicon production line is scheduled to start operation from May to June this year and then expand production capacity in the next few quarters. However, the bank is still concerned about the impact of price competition in the market.
BOC International said earlier that the rapid removal of photovoltaic glass in March drove prices up 2.9% in April. Coupled with falling raw fuel prices, the industry's profit margin clearly rebounded. However, the bank believes that the industry currently has a large amount of production capacity under construction, and will soon ignite a large amount of production capacity, but it is unlikely that demand will continue to rise sharply at a high base, so the industry will once again be oversupplied in the second half of the year, especially in the fourth quarter. The bank downgraded Xinyi Solar's rating to “neutral.”