Core Viewpoint - The solar photovoltaic demand in Q2 2025 has rapidly increased due to domestic rush installations, leading to a recovery in revenue and gross margins for major industry chain companies. Additionally, the easing of U.S. tariffs has significantly improved profitability in the U.S. market after companies streamlined their supply chains [1] Industry Chain Summary - The revenue of the main industry chain has increased, and gross margins have generally recovered, although there is differentiation among segments and companies. The downstream battery and module prices have risen quickly due to the rush installations, while the performance of silicon materials and wafers continues to decline marginally. Overall gross margin recovery is noted, but the increase in shipment volumes has not significantly reduced overall losses in the sector [1] - In Q2 2025, the output of slurry slightly increased quarter-on-quarter, but performance was heavily impacted by costs. The introduction of low-cost metal slurry production is expected to provide significant revenue and profit growth opportunities for slurry companies. The profitability of junction boxes, frames, and solder strips has been under pressure, while overseas production capacity for frames has shown strong contributions. Glass and film prices and profits have recovered due to domestic rush installations, with strong demand for centralized inverters and energy storage systems [2] Financial Outlook - The financial statements for Q3 2025 are expected to show further recovery, with a focus on the progress of reducing internal competition. Since July, the price of silicon materials has risen significantly, and downstream silicon wafers and battery modules have experienced varying degrees of price adjustments. The overall profit and operating cash flow for the sector are anticipated to improve further in Q3 2025, although the performance of the module segment may face some pressure quarter-on-quarter. Glass and film prices are expected to gradually rise above the production cost line of second-tier leading companies [3] Recommended Companies - Recommended companies include: - Silicon material segment: Tongwei Co., Ltd. (600438.SH) - High-efficiency module leader: JinkoSolar (688233.SH) - New technology BC and slurry: Dike Co., Ltd. (300842.SZ), Juhe Materials (688503.SH) - Racking: CITIC Bo (688408.SH) - Glass: Xinyi Solar (00968), Flat Glass (601865.SH) - Inverters and energy storage: Deye Technology (605117.SH), Jinlang Technology (300763.SZ), Shangneng Electric (300827.SZ), Canadian Solar (688472.SH) [4]

Market Overview - The Shanghai Composite Index is at 3823.31 points, above the annual line, with a change of 0.29% [1] - The total trading volume of A-shares is 9900.87 billion yuan [1] Stocks Breaking Annual Line - 22 A-shares have broken above the annual line today, with notable stocks including: - Xinxiangwei (涨幅 14.65%, 乖离率 9.11%) - Dafu Technology (涨幅 8.27%, 乖离率 5.47%) - Phoenix Optical (涨幅 6.82%, 乖离率 3.96%) [1] Stocks with Smaller Deviations - Stocks with smaller deviations just above the annual line include: - Huachangda (乖离率 0.03%) - Aier Eye Hospital (乖离率 0.03%) - Shichuang Energy (乖离率 0.03%) [2]

Group 1 - The core viewpoint of the news is that Fuyao Glass has seen a significant increase in its stock price, rising by 5.14% to reach 19.22 CNY per share, with a trading volume of 917 million CNY and a turnover rate of 2.57%, resulting in a total market capitalization of 45.031 billion CNY [1] - Fuyao Glass Group Co., Ltd. is located in Jiaxing City, Zhejiang Province, and was established on June 24, 1998. The company was listed on February 15, 2019, and its main business includes the research, production, and sales of photovoltaic glass, float glass, engineering glass, and household glass, as well as the mining and sales of quartz ore for glass and EPC photovoltaic power station engineering construction [1] Group 2 - From the perspective of major fund holdings, data shows that one fund under Huatai PineBridge holds a significant position in Fuyao Glass. The Huatai PineBridge CSI Photovoltaic Industry Index Enhanced Initiation A (013816) held 1.3 million shares in the second quarter, unchanged from the previous period, accounting for 3.09% of the fund's net value, making it the seventh-largest holding [2] - The Huatai PineBridge CSI Photovoltaic Industry Index Enhanced Initiation A (013816) was established on October 26, 2021, with a latest scale of 209 million CNY. Year-to-date, it has achieved a return of 9.37%, ranking 3475 out of 4222 in its category; over the past year, it has returned 21.48%, ranking 3384 out of 3795; since inception, it has incurred a loss of 49.67% [2] - The fund manager of Huatai PineBridge CSI Photovoltaic Industry Index Enhanced Initiation A (013816) is Lai Zhongli, who has a cumulative tenure of 12 years and 312 days. The total asset scale under his management is 1.211 billion CNY, with the best fund return during his tenure being 60.26% and the worst being -50.15% [2]

原评级：增持 市场价格:人民币 18.28 板块评级:强于大市 股价表现 (%) 今年 至今 1 个月 3 个月 12 个月 绝对 (5.8) 11.6 25.5 3.4 相对上证综指 (21.2) 6.5 14.0 (31.9) 发行股数 (百万) 2,342.92 (21%) (4%) 12% 29% 46% 63% Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Sep-25 福莱特 上证综指 | 流通股 (百万) | 2,342.74 | | --- | --- | | 总市值 (人民币 百万) | 42,828.58 | | 3 个月日均交易额 (人民币 百万) | 429.59 | | 主要股东 | | | 香港中央结算(代理人)有限公司 | 18.85% | 资料来源：公司公告， Wind ，中银证券 以 2025 年 9 月 4 日收市价为标准 相关研究报告 电力设备 | 证券研究报告 — 调整盈利预测 2025 年 9 月 8 日 601865.SH 增持 证券分析师：武佳雄 jiaxi ...

Core Viewpoint - The company experienced significant declines in revenue and net profit in the first half of 2025, primarily due to falling photovoltaic glass prices and asset impairments [1] Group 1: Financial Performance - In the first half of 2025, the company achieved revenue of 7.737 billion yuan, a year-on-year decrease of 27.66% [1] - The net profit attributable to shareholders was 261 million yuan, down 82.58% year-on-year [1] - In Q2 2025, revenue was 3.658 billion yuan, a year-on-year decline of 26.41% and a quarter-on-quarter decrease of 10.33% [1] - The net profit for Q2 was 155 million yuan, down 79.02% year-on-year but up 46.02% quarter-on-quarter [1] Group 2: Margin and Impairment - The gross margin for photovoltaic glass in the first half was 12.31%, a decrease of 12.39 percentage points year-on-year [1] - The overall gross margin improved by nearly 5 percentage points quarter-on-quarter in Q2 [1] - Asset impairments in Q2 amounted to approximately 240 million yuan, with around 100 million yuan related to raw materials and products, and about 140 million yuan related to fixed assets [1] Group 3: Market Outlook - In September, photovoltaic glass prices showed improvement, indicating potential recovery in profitability due to supply-demand dynamics [1] - The company undertook cold repairs on three glass furnaces in July, with a total daily melting capacity of 3,000 tons, while current production capacity stands at 16,400 tons [1] - The photovoltaic industry is experiencing enhanced expectations for "anti-involution," contributing to the positive pricing trend in September [1] Group 4: Industry Context - As of September, the price for 3.2mm single-layer coated photovoltaic glass ranged from 18.5 to 19.5 yuan per square meter, while the price for 2.0mm single-layer coated glass remained around 13 yuan per square meter [2] - Domestic cold repair capacity reached 15,000 tons, with global photovoltaic glass supply capacity at approximately 100,000 tons [2] - The industry inventory has decreased to a reasonable level of 20 days, indicating an improving supply-demand structure [2] Group 5: Investment Rating - The company is rated as a "buy," with a target price raised to 14.00 HKD per share, reflecting a potential upside of 25% from the current price [2] - As a leading enterprise in the industry, the company is expected to recover profitability ahead of its peers, supported by its technological and cost advantages [2]

Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 19.20 CNY [6][13] Core Views - The company is currently facing short-term performance pressure due to the downturn in the photovoltaic industry, but it has a clear long-term growth momentum driven by technological advancements and a recovering photovoltaic glass market [2][13] - The company's market share in photovoltaic glass is approximately 30%, and it is focusing on high-transparency, ultra-thin, and high-efficiency products to enhance its competitive edge [13] Financial Summary - Total revenue for 2023 is projected at 21,524 million CNY, with a decrease to 15,050 million CNY in 2025, reflecting a decline of 19.4% [4] - Net profit attributable to shareholders is expected to drop from 2,760 million CNY in 2023 to 572 million CNY in 2025, a decrease of 43.2% [4] - Earnings per share (EPS) is forecasted to be 1.18 CNY in 2023, dropping to 0.24 CNY in 2025, before recovering to 0.78 CNY by 2027 [4][14] Market and Industry Analysis - The photovoltaic glass market is experiencing a supply-demand imbalance, leading to significant price declines in the first half of 2025, which has adversely affected the company's revenue and net profit [13] - In August, the photovoltaic glass industry began to show signs of recovery, with prices improving and inventory levels decreasing, which is expected to support profitability moving forward [13] Future Outlook - The company is projected to see a gradual recovery in revenue and profit margins from 2026 onwards, with expected revenues of 20,017 million CNY in 2026 and 23,020 million CNY in 2027 [4][14] - The report anticipates that the company's technological innovations will continue to drive its market position and profitability in the long term [13]

Core Viewpoint - The photovoltaic industry is transitioning from "price wars" to "value reconstruction," with a comprehensive recovery across the industry chain driven by both policy and market dynamics, benefiting leading companies first [1][2]. Group 1: Industry Recovery - The first half of 2025 marks a significant recovery for the Chinese photovoltaic industry, with nearly half of the 70 listed companies in the photovoltaic equipment sector reporting positive performance [3]. - The recovery is supported by policy-driven market order optimization, which has alleviated price competition issues across the industry chain [3][4]. - The price of polysilicon has been rising since July 2025, with N-type polysilicon prices exceeding 50,000 yuan/ton, indicating a gradual restoration of profitability in the main industry chain [3]. Group 2: Policy and Demand Drivers - A series of targeted policies have been introduced since 2025 to address the industry's pain points related to "low-price disorderly competition" [4]. - The implementation of the revised Anti-Unfair Competition Law on June 27, 2025, prohibits selling products below cash cost, establishing a price floor for the photovoltaic industry [4]. - Strong demand is evident, with domestic new photovoltaic installations reaching 223.25 GW from January to July 2025, a year-on-year increase of 81% [3][4]. Group 3: Investment Opportunities in the Industry Chain - In the polysilicon segment, profitability is recovering significantly, with prices continuing to rise and reaching a maximum increase of 3.37% [5]. - Tongwei Co., Ltd. holds a 30% global market share in high-purity crystalline silicon, with a cash cost of approximately 38,000 yuan/ton, indicating strong cost control [6]. - The silicon wafer segment is transitioning to N-type technology, with N-type silicon wafer penetration expected to exceed 90% by 2025 [7]. Group 4: Technological Advancements and Market Positioning - The battery segment is dominated by TOPCon technology, with a production capacity of 967 GW, accounting for 83% of the market [8]. - JinkoSolar is a leader in N-type TOPCon technology, with a production efficiency exceeding 25% and a significant share of overseas revenue [8]. - The module segment shows clear differentiation, with N-type modules accounting for over 70% of the market, and leading companies like LONGi Green Energy and Trina Solar achieving high power outputs and certifications [9]. Group 5: Storage and New Growth Drivers - The explosive growth in the energy storage sector is a core driver of the current recovery, with increasing demand for photovoltaic and storage system integration [12]. - Sungrow Power Supply Co., Ltd. is a leading player in the energy storage system market, with a global market share of 35% in storage inverters [12].

Investment Rating - The report assigns a "Buy" rating to the company, with a target price raised to HKD 14.00 per share, indicating a potential upside of 25% from the current price of HKD 11.19 [5][10]. Core Views - The company's performance in the first half of 2025 was impacted by a decline in photovoltaic glass prices and asset impairments, leading to a revenue drop of 27.66% year-on-year to RMB 77.37 billion and a net profit decline of 82.58% to RMB 2.61 billion [2][8]. - The photovoltaic glass market is showing signs of recovery, with improved pricing expected in September 2025, driven by supply-demand dynamics and a reduction in industry inventory levels [4][9]. - The company is positioned as a leading player in the industry, with advantages in technology and cost, which are expected to facilitate a quicker recovery in profitability compared to peers [4][10]. Summary by Sections Financial Performance - In H1 2025, the company reported a revenue of RMB 77.37 billion, down 27.66% year-on-year, and a net profit of RMB 2.61 billion, down 82.58% year-on-year. Q2 2025 revenue was RMB 36.58 billion, a decrease of 26.41% year-on-year and 10.33% quarter-on-quarter, with a net profit of RMB 1.55 billion, down 79.02% year-on-year but up 46.02% quarter-on-quarter [2][8]. - The gross margin for photovoltaic glass in H1 2025 was 12.31%, a decline of 12.39 percentage points year-on-year, although Q2 showed a near 5 percentage point improvement quarter-on-quarter [8]. Market Outlook - The company has recently cold-repaired three glass furnaces, totaling a daily melting capacity of 3,000 tons, while current production capacity stands at 16,400 tons. The photovoltaic glass pricing is improving, with recent quotes indicating a range of RMB 18.5-19.5 per square meter for 3.2mm single-layer coated glass and around RMB 13 per square meter for 2.0mm [4][9]. - The overall supply-demand structure in the photovoltaic glass industry is beginning to improve, with inventory levels dropping to a reasonable 20 days [4][9]. Valuation - The target price has been increased to HKD 14.00 per share, corresponding to a 23x PE ratio for 2026, reflecting an anticipated valuation uplift as the company navigates through the current cycle [5][10].

Group 1 - The financing balance on the Shanghai Stock Exchange reached 1,152.873 billion yuan, a decrease of 4.56 billion yuan from the previous trading day [1] - The financing balance on the Shenzhen Stock Exchange was 1,103.973 billion yuan, down by 5.156 billion yuan from the previous trading day [1] - The total financing balance for both exchanges combined was 2,256.846 billion yuan, a reduction of 9.716 billion yuan from the previous trading day [1] Group 2 - The A-share market closed down by 1.25%, ending at 3,765.88 points [1] - The trading volume in the Shanghai, Shenzhen, and Beijing markets increased to 25.8 trillion yuan, a week-on-week growth of 186.1 billion yuan [1] - The top ten stocks with net financing purchases included Jianghuai Automobile (384 million yuan) and Ningbo Huaxiang (374 million yuan) [1] Group 3 - Leveraged funds favored convertible bond targets, sodium-ion batteries, solid-state batteries, ultra-clear video, and unicorn-related sectors [2] - The top ten stocks with net financing sales included Cambrian (negative 1.626 billion yuan) and Victory Technology (negative 715 million yuan) [2]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company reported a revenue of 7.737 billion yuan for H1 2025, a year-on-year decrease of 27.66%, and a net profit attributable to shareholders of 261 million yuan, down 82.58% year-on-year [2][5] - In Q2 2025, the company achieved a revenue of 3.658 billion yuan, a year-on-year decrease of 26.41% and a quarter-on-quarter decrease of 10.33%. The net profit attributable to shareholders was 155 million yuan, down 79.02% year-on-year but up 46.02% quarter-on-quarter [2][5] - The company is expected to benefit from improvements in supply and demand within the industry, leading to a potential recovery in profitability [5] Summary by Sections Financial Performance - For H1 2025, the sales price of photovoltaic glass decreased, resulting in pressure on profitability. The revenue from photovoltaic glass was approximately 6.9 billion yuan, a year-on-year decline of 28%, with a slight decrease in shipment volume [8] - The gross margin for H1 2025 was 12%, down 12 percentage points year-on-year. However, cost reductions in key raw materials and various efficiency improvement measures mitigated some of the negative impacts from price declines [8] - In Q2 2025, due to a decline in domestic demand, the company experienced a trend of reduced volume but increased profit. The average price of photovoltaic glass remained high in April, although it decreased in May and June. The gross margin for Q2 was approximately 17%, an increase of 5 percentage points quarter-on-quarter [8] Future Outlook - As of September, the price of 2.0mm photovoltaic glass was raised by 2 yuan per square meter compared to early August, indicating better-than-expected supply and demand improvements and a decrease in industry inventory days [8] - The company, as a leading player in the photovoltaic glass sector, is expected to have a profitability level that exceeds the industry average and is likely to be among the first to benefit from a recovery in profitability if component production resumes [8]