Understanding the Market | Photovoltaic stocks collectively decline as the rush for installations fades, with installed capacity hitting new lows continuously. The market focuses on the pace of capacity clearance and subsequent installation demand
Photovoltaic stocks collectively declined, with FLAT GLASS falling 7.24%, XINYI SOLAR down 6.13%, XINYI GLASS decreasing 5.38%, and XINTE ENERGY dropping 4.18%. The "installation rush" at the beginning of the year has ended, and the installed capacity from June to August has continued to hit new lows. GuoXin Securities pointed out that the profitability of photovoltaic companies will be affected by the pace of capacity clearance and the marketization of electricity prices. Nanhua Futures mentioned that the market is paying attention to the implementation of photovoltaic storage platforms and the cancellation cycle of polysilicon warehouse receipts. If the bulls lack the willingness to take over, they may face liquidation pressure
According to Zhitong Finance APP, photovoltaic stocks collectively declined. As of the time of publication, FLAT GLASS (06865) fell by 7.24% to HKD 10.76; XINYI SOLAR (00968) dropped by 6.13% to HKD 3.37; XINYI GLASS (00868) decreased by 5.38% to HKD 8.61; and XINTE ENERGY (01799) fell by 4.18% to HKD 7.8.
In terms of news, the issuance of Document No. 136 at the beginning of the year triggered a "rush to install," with new photovoltaic installations doubling year-on-year, leading to increased expectations for annual installations in the industry. However, the "rush to install" came to an end at the end of May, and installations in June, July, and August continued to hit new lows, with the month-on-month decline also expanding. Guosen Securities stated that the future profitability of photovoltaic companies mainly depends on the pace of capacity clearance and the demand for photovoltaic installations after the marketization of on-grid electricity prices.
Nanhua Futures indicated that, from a time perspective, the current market has already reflected the situation of the photovoltaic storage platform not being implemented in September. However, there are rumors that the photovoltaic storage platform will be implemented in mid-October, which requires close attention to photovoltaic conferences and market conditions. Additionally, as November approaches, the market will gradually enter the concentrated cancellation period for polysilicon warehouse receipts specified by the broad exchange in November. If the bulls lack willingness to take over at that time, the PS2511 contract may face significant liquidation pressure
