Driven by favorable policies and expected price increases for components, Hong Kong solar stocks performed strongly today. As of press time, Xinyi Solar (00968.HK) rose over 4%, GCL Technology (03800.HK) rose 3.61%, and Flat Glass Group (06855.HK) rose 2.32%. The main momentum behind this rise comes from the "Guiding Opinions on Renewable Energy Replacement Action" released by the National Development and Reform Commission and other departments on October 30. The opinions emphasize the enhancement of clean energy supply capabilities, accelerating the construction of large wind power and solar energy bases, with a focus on deserts and desert areas. Analysts believe this policy will continue to benefit the solar sector, providing long-term growth momentum for solar companies.
In the stock market, the Hong Kong solar sector showed significant performance with positive market investment sentiment. Huachuang Securities pointed out that the recent price increases of solar modules have brought certain market expectations, as major module companies like LONGi Green Energy, Trina Solar, Jinko Solar, and Tongwei have slightly increased their module shipping prices by roughly 1-3 cents per watt since October 29. Industry insiders believe the moderate rise in solar module prices will improve corporate profitability and reduce quality risks brought by low-price competition. The latest "anti-involution" measures advocated by the Photovoltaic Industry Association are expected to promote healthy industry development. Some institutional analysts believe that if the upward price trend continues, it will further enhance the investment attractiveness of the Hong Kong solar sector.
CITIC Securities pointed out in a research report that, benefiting from policy support and rising component prices, the profit levels of downstream segments of the solar industry chain are expected to improve, especially for leading auxiliary material companies with technological advantages and market share, which are expected to become core investment targets in the fourth quarter. BOCOM International believes that after experiencing pressure from low-price competition, the solar industry chain's supply and demand situation will improve with the gradual advancement of supply-side reforms, and price recovery will be beneficial for quality companies. Additionally, BOCOM International specifically mentioned that low-energy consumption granular silicon materials are expected to accelerate their popularity with policy support. It is expected that under the dual drives of policy dividends and market demand, the Hong Kong solar sector still has significant potential for increase in the coming months, offering high investment value.
