CICC·2025-12-14 13:12Investment Rating - The report rates the industry as "Outperform" based on the expected performance of key companies exceeding the industry index over the next 6 to 12 months [20][23]. Core Insights - The establishment of the "polysilicon capacity integration acquisition platform" marks a significant step in the photovoltaic supply-side reform, indicating a move towards reducing internal competition within the industry [4][5]. - The polysilicon sector is expected to undergo a deep adjustment and clearing process over the next six months to a year, with current production levels remaining stable but facing weak downstream demand [5]. - Leading polysilicon companies are anticipated to strengthen their advantages in the long term due to their financial resources, cost management, and product quality [5][6]. Summary by Sections Industry Dynamics - The report highlights the recent establishment of a polysilicon capacity integration acquisition platform, which aims to improve the competitive landscape of the photovoltaic industry through market-oriented and legal mechanisms [4][5]. - The current polysilicon production is around 120,000 tons, with limited marginal reductions, and prices have remained stable due to cost support [5]. Valuation and Recommendations - The report suggests focusing on leading companies in the polysilicon sector, specifically Tongwei Co., Ltd. and Daqo New Energy, while also monitoring trends in granular silicon technology [6]. - The target prices for the recommended companies are set at CNY 28.20 for Tongwei and CNY 35.50 for Daqo, with expected P/E ratios of 38.8 and 39.6 for 2026, respectively [3][6].