Daqo Energy(SH:688303) Minsheng Securities·2025-08-28 06:33Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on its ability to navigate through industry cycles [4][7]. Core Insights - The company's performance is under pressure primarily due to supply-demand imbalances in the photovoltaic industry, leading to lower product prices [1]. - The company has actively implemented production cuts in response to national initiatives, resulting in a significant decrease in polysilicon production and sales in the first half of 2025 [2]. - Despite the reduction in production, the company has managed to lower its cash costs, demonstrating effective cost control and management strategies [2]. - The company has a strong financial position with a cash reserve of 12.09 billion and a low debt ratio of 8.04%, which provides a solid foundation for navigating industry cycles [3]. Financial Projections - Revenue projections for 2025, 2026, and 2027 are estimated at 3.85 billion, 8.48 billion, and 12.21 billion respectively, with corresponding net profits of -1.53 billion, 0.79 billion, and 1.51 billion [4][6]. - The company is expected to achieve a significant revenue growth rate of 120% in 2026 and 44% in 2027, following a decline in 2025 [6][12]. - The price-to-earnings (PE) ratios for 2026 and 2027 are projected to be 79x and 42x, respectively, indicating potential for future profitability [4][12].