Core Viewpoint - The report from Jianyin International maintains a target price of HKD 4.4 for Xinyi Solar (00968) and a "outperform" rating, indicating that while the stock price is influenced by policy, fundamental improvements will take time [1] Group 1: Financial Performance - Xinyi Solar's net profit for the first half of 2025 decreased by 59% year-on-year to RMB 746 million, aligning with expectations [1] - The decline in performance is primarily attributed to a 10.1 percentage point drop in the gross margin of photovoltaic glass sales to 11%, along with a 2 percentage point contraction in the gross margin of solar power plants [1] - The average selling price (ASP) of photovoltaic glass significantly decreased, offsetting the decline in unit costs and a 17.5% increase in sales volume [1] Group 2: Future Outlook - Jianyin International holds a cautious outlook for the second half of 2025, adjusting the effective annual melting capacity target from 9.1 million tons to 8.14 million tons due to the decline in ASP of 2.0mm photovoltaic glass [2] - The company anticipates a rush installation in the first half of 2025 due to renewable energy price reforms, followed by a decrease in demand in the second half [2] - Major photovoltaic glass companies are expected to lower production plans in the coming month due to industry inventory buildup and other factors, while supply-side reforms and new pricing laws may improve short-term profitability [2]
建银国际：料信义光能下半年或看政策 维持目标价4.4港元 评级“跑赢大市”