Shenwan Hongyuan Securities·2025-09-22 13:10Investment Rating - The industry investment rating is "Overweight," indicating that the industry is expected to outperform the overall market [9]. Core Insights - The photovoltaic glass industry is experiencing a recovery driven by self-discipline and policy guidance, with a significant reduction in inventory levels and an increase in prices since July 2025 [4]. - Major photovoltaic glass companies have shown signs of performance improvement in Q2 2025, with notable profit increases for companies like Fuyao and Qibin Group [4]. - The head companies in the photovoltaic glass sector are expected to demonstrate stronger resilience and profitability due to their scale, cost advantages, and technological strengths [4]. Summary by Sections Industry Overview - As of September 19, 2025, the industry inventory level reached 1.3 million tons, marking a near one-year low [4]. - The operating rate of photovoltaic glass production was 51.59% as of the end of August 2025, with a production capacity of 129,000 tons per day [4]. Market Dynamics - The "anti-involution" actions within the industry have been crucial in driving price recovery, with several companies planning to collectively reduce production by 30% [4]. - The average prices for 3.2mm and 2.0mm single-layer coated glass have increased by 1.75 and 2.5 CNY per square meter, respectively, since early July 2025 [4]. Company Performance - Fuyao achieved a net profit of 155 million CNY in Q2 2025, a 46% increase quarter-on-quarter, with a gross margin improvement of approximately 5 percentage points to around 16.7% [4]. - Qibin Group reported a net profit of 420 million CNY in Q2 2025, a 14% year-on-year increase, with its photovoltaic glass business generating 3.2 billion CNY in revenue, up 11% year-on-year [4]. Investment Recommendations - The report suggests a positive outlook for leading companies like Fuyao and Qibin Group, anticipating a dual recovery in profitability and valuation as the industry stabilizes [4].