Ge Long Hui A P P·2025-10-20 05:59Core Viewpoint - Huatai Securities reports that GCL-Poly Energy has made significant progress in its photovoltaic materials business, achieving a turnaround in profitability in Q3 2023 [1] Financial Performance - The EBITDA for the photovoltaic materials business in Q3 is approximately 1.41 billion yuan, with a net profit of about 960 million yuan, both indicating a return to profitability [1] - The turnaround is attributed to several factors, including a transfer gain from joint ventures of about 640 million yuan, improvements in silicon material operations, and the reversal of inventory impairment losses [1] Industry Outlook - The report expresses optimism about the steady advancement of domestic photovoltaic industry reforms, which may reshape the supply-demand dynamics within the sector [1] - The company’s granular silicon energy consumption advantage is highlighted, along with the potential for its silane gas business to create a second growth driver, indicating significant profit elasticity [1] Valuation - Huatai Securities maintains a target price of 2.22 HKD for GCL-Poly Energy, based on a price-to-earnings ratio of 48 times for 2026, and continues to hold a "Buy" rating [1]