GCL TECH(HK:03800) Ge Long Hui·2025-09-14 04:33Core Viewpoint - The company is expected to see a significant recovery in performance in the second half of 2025 due to improved pricing trends, despite facing challenges in the first half of the year from industry-wide low prices [1][2]. Financial Performance - In the first half of 2025, the company reported revenue of 5.735 billion yuan, a year-on-year decrease of 36.8%, and a net loss of 1.776 billion yuan [1]. - The projected net profits for 2025-2027 are -2.057 billion, 0.306 billion, and 1.370 billion yuan, respectively, with corresponding EPS of -0.07, 0.01, and 0.05 yuan per share [1]. Pricing Trends - The average selling prices for granular silicon in Q1 and Q2 of 2025 were 35.71 yuan/kg and 32.93 yuan/kg, respectively [1]. - The price of N-type granular silicon increased from 33,500 yuan/ton on June 25 to 48,000 yuan/ton on September 3, marking a 43% increase [2]. Competitive Advantage - The company's cash costs for granular silicon (including R&D) decreased to 27.07 yuan/kg in Q1 and 25.31 yuan/kg in Q2, indicating ongoing cost optimization [2]. - The quality of the company's granular silicon products has improved, leading to increased customer adhesion due to the superior purity and stability of the products [2]. Industry Dynamics - The photovoltaic industry is experiencing a price rebound driven by government policies aimed at stabilizing competition and addressing issues like below-cost sales and false marketing [2]. - A meeting held by six departments on August 19 emphasized the importance of regulating the photovoltaic industry, indicating strong policy support for price stabilization [2].