Daqo Energy(SH:688303) Shanxi Securities·2025-09-23 01:56Investment Rating - The report maintains a "Buy-B" rating for the company, indicating a positive outlook for its stock performance in the coming months [4][7]. Core Views - The company has implemented a strategic production reduction to alleviate market supply pressure, which is supported by a strong financial position with ample cash reserves [5][7]. - The company reported a significant decline in revenue and net profit for the first half of 2025, with a revenue of 1.47 billion yuan, down 67.9% year-on-year, and a net profit loss of 1.15 billion yuan [4][5]. - The company is expected to produce between 270,000 to 300,000 tons of polysilicon in Q3 2025, with an annual production forecast of 1.1 to 1.3 million tons [5]. Financial Performance Summary - For the first half of 2025, the company achieved a revenue of 1.47 billion yuan, a decrease of 67.9% year-on-year, and a net profit loss of 1.15 billion yuan [4]. - In Q2 2025, the company recorded a revenue of 560 million yuan, down 64.9% year-on-year and 38.0% quarter-on-quarter, with a net profit loss of 590 million yuan [4][5]. - The company’s polysilicon production in Q2 2025 was 26,000 tons, a decrease of 60.0% year-on-year, while sales volume was 18,000 tons, down 57.9% year-on-year [5]. - The company’s cash reserves as of June 30, 2025, totaled 12.09 billion yuan, with no interest-bearing debt, indicating a robust financial position [5]. Future Projections - The company’s earnings per share (EPS) are projected to be -0.44 yuan in 2025, 0.50 yuan in 2026, and 0.95 yuan in 2027, reflecting a recovery trend [7]. - The price-to-earnings (P/E) ratios are expected to be -67.3 in 2025, 59.2 in 2026, and 30.9 in 2027, indicating a potential improvement in valuation as earnings recover [7].