According to the Zhitong Finance APP, Guotai Junan has released a research report stating that the current photovoltaic industry chain is expected to enter a price increase channel, with the sector already at an anticipated bottom position. The industry's fundamentals are stabilizing at the bottom, and positive catalysts from both the supply and demand sides are expected to gradually emerge. The subsequent industry prosperity and expectations for supply and demand improvement are continuously rising, and opportunities in the sector are expected to become apparent, maintaining an overweight rating for the industry.

Key focus areas:

1. Continuous decline in inventory, with profitability expected to improve first in the battery, silicon wafer, and photovoltaic glass segments, as well as leading companies with favorable positions in each segment.
2. Continuous breakthroughs in new technologies, with BC battery module efficiency advantages leading, and innovations such as copper paste and stacked cells gradually being applied.

Guotai Junan's main viewpoints are as follows:

Industry self-discipline combined with recovery in prosperity, prices in the industry chain begin to rebound

With the ongoing promotion of industry self-discipline, prices in the photovoltaic industry chain have begun to show a comprehensive upward trend. According to reports from the public news media Yicai, several domestic leading photovoltaic module companies have collectively raised module prices, with increases ranging from 3-5 cents/w for distributed pricing and 2-3 cents/w for channel customers. The first quarter is typically a low-demand season for the photovoltaic industry; however, with the continuous promotion of industry self-discipline, current industry inventory is at a healthy or even bottom stage. Prices have begun to stabilize at the bottom before the Spring Festival, and demand has continued to recover after the festival. Currently, the domestic market price adjustment mechanism is gradually returning, and the European market's destocking is basically complete, making it likely for the industry chain to fully enter a price increase channel.

Expected bottom combined with marginal upward catalysts, focus on optimizing supply and demand patterns and new technology advancements

The current photovoltaic sector is at an anticipated bottom position, with the industry's fundamentals stabilizing at the bottom stage. Positive catalysts from both the supply and demand sides are expected to gradually emerge. The subsequent industry prosperity and gradual recovery of prices and profitability, along with continuously improving expectations for supply and demand, are likely to reveal opportunities in the sector. Investors are advised to focus on two major aspects: 1) Continuous decline in inventory, with profitability expected to improve first in the battery, silicon wafer, and glass segments, as well as leading companies with favorable positions in each segment. 2) Continuous breakthroughs in new technologies, with BC battery module efficiency advantages leading, and innovations such as copper paste and stacked cells gradually being applied.

Risk warning: Demand may fall short of expectations; worsening patterns may lead to continued price declines for products; trade barriers