JP Morgan holds a constructive view on the photovoltaic industry "anti-involution" and maintains a "Buy" rating on GCL TECH

AASTOCKS
2025.12.12 03:37

JP Morgan published a research report stating that despite the recent launch of the polysilicon capacity acquisition platform, the China Securities Photovoltaic Industry Index has cumulatively dropped about 2.4% over the past two trading days. This may be due to capital outflows caused by "selling on news" and the industry's consolidation level being lower than expected.

JP Morgan indicated that GCL TECH (03800.HK) stock price has fallen 11% over the past two trading days due to short-term pressure from the equalization of capacity quotas. However, as a cost leader, the firm believes it can purchase capacity quotas from smaller companies, thereby enhancing JP Morgan's forecasted return on equity (ROE) benchmark and market share for the fiscal year 2027. Meanwhile, Xinjiang GCL has been included in the platform's shareholder list, alleviating concerns about GCL TECH's impairment losses.

JP Morgan remains constructive on the solar industry’s "anti-involution" and maintains an "overweight" rating on Daqo New Energy (DQ.US) and GCL TECH, with target prices of $38 and HKD 1.7, respectively

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