Daiwa has a negative outlook on the mainland solar industry, expecting the market to be overly optimistic about the industry's profitability

Daiwa's research report indicates a negative outlook on the mainland solar industry, believing that the market's expectations for the industry's profitability in 2025 are overly optimistic, which may pose risks to stock prices.

Within the industry, the firm reiterated its "Outperform" rating on Daqo New Energy (DQ.US), as it believes the company has investment value in the long term, with its net cash value exceeding its market value. Xinyi Energy (03868.HK) received a "Hold" rating, with its target price raised to HKD 0.9 earlier.

As for Flat Glass Group (06865.HK) and Xinyi Solar (00968.HK), both received "Underperform" ratings. Earlier, the earnings forecasts for Flat Glass Group for 2024 to 2026 were cut by 19% to 36%, and the earnings per share forecast for Xinyi Solar was lowered by 8% to 16%