Longi(SH:601012) Shanghai Securities·2025-08-18 11:26Group 1: Core Insights - The report focuses on the ETF allocation strategy for the photovoltaic sector, specifically highlighting Longi Green Energy (601012.SH) as the best-performing stock in terms of alignment with the CSI Photovoltaic Industry Index from August 2024 to July 2025 [1][7]. - Longi Green Energy's bottom valuation at the beginning of 2025 was 1.3 times PS, and its stock price has consistently remained below the expected fundamental value for 2027, which is calculated based on the consensus forecast of revenue per share multiplied by 1.3 times PS [2][7]. - The average position of Longi Green Energy from July 31 to August 12, 2025, was 35.6%, with a closing price on August 12, 2025, situated between the fundamental value ranges for 2026 and 2027 [2][8]. Group 2: Performance Metrics - The dynamic allocation strategy based on Longi Green Energy yielded a return of 1.68% from August 1 to August 12, 2025, with a maximum drawdown of 0.28%, slightly outperforming a buy-and-hold strategy which achieved a return of 4.33% but with a higher maximum drawdown of 0.82% [2][8]. - The report indicates that the Sharpe ratio of the allocation strategy was slightly better than that of the buy-and-hold strategy, suggesting a more favorable risk-adjusted return [2][8].