Zhi Tong Cai Jing·2025-10-21 07:36Core Viewpoint - The report from CMB International maintains a "Buy" rating for GCL-Poly Energy Holdings Limited (03800), highlighting a significant increase in polysilicon prices that has led to a turnaround in profitability [1] Financial Performance - GCL-Poly's photovoltaic materials segment reported a profit of 960 million RMB in Q3 2025, including a post-tax profit of 640 million RMB from the sale of its associate company, Xinhua Semiconductor [1] - The company has successfully turned a profit due to the increase in polysilicon prices, which rose from a low of 34,000 RMB per ton to the current price of 50,000 RMB per ton since late July [1] Market Dynamics - The anti-involution policy, which prevents sales below cost, has contributed to the significant rise in polysilicon prices [1] - An increase in operating rates has also helped to dilute unit depreciation and expenses, further supporting the profitability of the granular silicon business [1] Future Outlook - CMB International has revised its net profit forecast for GCL-Poly, setting a target price of 1.54 HKD based on a 2026 price-to-earnings ratio of 16 times, while maintaining the "Buy" rating [1]