Core Viewpoint - The multi-crystalline silicon market in China remains stable with slight price fluctuations, driven by supply-demand dynamics and production adjustments by manufacturers [1][2]. Price Summary - The transaction price range for n-type re-investment material is between 46,000 to 51,000 yuan/ton, with an average price of 47,900 yuan/ton, remaining unchanged week-on-week [1]. - The average transaction price for n-type granular silicon is 47,000 yuan/ton, reflecting a week-on-week increase of 2.17% [1][2]. - The main order prices for rod silicon remain stable, while smaller orders and granular silicon prices have increased by 1 yuan/kg [1]. Market Dynamics - The number of main signing enterprises in the multi-crystalline silicon market has decreased to 3-4, indicating a reduction in market activity [1]. - One new silicon material enterprise has resumed production, bringing the total number of operating multi-crystalline silicon enterprises in China to 10 [1]. - Companies are independently reducing production and controlling sales, while downstream demand for inventory has increased, contributing to a bullish sentiment in the industry [1]. Production Outlook - The expected production volume for September is around 125,000 to 130,000 tons, down from the original planned production of 140,000 tons [1]. - Silicon wafer enterprises plan to reduce their operating rates to alleviate supply-demand pressure in the silicon wafer segment [1]. - The multi-crystalline silicon segment continues to face inventory accumulation risks, indicating that the supply-demand fundamentals have not significantly improved [1].

Report Summary 1. Report Industry Investment Rating No investment rating for the industry is provided in the report. 2. Core Viewpoints - The silicon market is characterized by weak supply and demand, with high industry inventory pressure. The sudden production cut by Xinjiang silicon enterprises on the supply - side has supported the short - term silicon price, but the long - term oversupply situation remains [1]. - The polysilicon price has rebounded at a low level driven by the increase in industrial silicon prices. However, due to the industry's overcapacity adjustment that requires time to be transmitted, the rebound space may be limited [1]. 3. Summary by Relevant Catalogs Industrial Silicon - **Price Data**: The average price of industrial silicon non - oxygenated 553 (East China) remained flat at 8,100 yuan/ton, and the average price of 421 (East China) industrial silicon remained flat at 8,700 yuan/ton. The closing price of the futures main contract rose 4.02% to 8,030 yuan/ton [1]. - **Supply**: Northern silicon enterprises'开工 has changed little. The southwest production area is about to enter the wet season, with lower power costs and a steady increase in enterprise 开工. The overall supply is increasing steadily [1]. - **Demand**: Polysilicon enterprises continue to cut production, and the resumption of production may be postponed. Organic silicon enterprises have a strong willingness to cut production to support prices, but the demand is weak. The downstream is in a wait - and - see mood, and the actual transaction price has declined. The overall 开工 of domestic monomer enterprises has declined, and the demand for industrial silicon has further weakened. Silicon - aluminum alloy enterprises purchase as needed, and the downstream's willingness to stock up at a low level is insufficient [1]. - **Investment Strategy**: In the short term, the sudden production cut by Xinjiang silicon enterprises has supported the silicon price. In the long term, the oversupply situation remains, and continuous attention should be paid to the actual production dynamics of silicon enterprises [1]. Polysilicon - **Price Data**: The price of N - type dense material remained flat at 33.5 yuan/kg, the price of polysilicon re - feeding material remained flat at 31.5 yuan/kg, the price of polysilicon dense material remained flat at 30.0 yuan/kg, the price of polysilicon cauliflower material remained flat at 28.5 yuan/kg. The closing price of the futures main contract rose 5.04% to 33,315 yuan/ton [1]. - **Supply**: Polysilicon enterprises continue to cut production, and some polysilicon plants may have new production capacity put into operation. After offsetting, the output is expected to increase slightly, but overall it will remain within 100,000 tons [1]. - **Demand**: The photovoltaic market is weak, with rising inventories of silicon wafers and polysilicon, continuous decline in the prices of silicon wafers, battery cells, and components, slow - growing market demand, and weak transactions [1]. - **Investment Strategy**: The polysilicon price has rebounded at a low level, but the rebound space may be limited. Continuous attention should be paid to the actual 开工 situation of the industrial chain [1]. Other Information - From June 20th to June 26th, the weekly output of sample silicon plants in Xinjiang was 34,220 tons, and the weekly 开工 rate was 71%, an increase from the previous week. Recently, news of production cuts by a large Xinjiang enterprise has spread, with more than 20 furnaces shut down, and the daily impact on production is expected to be about 1,500 - 1,700 tons. The duration of the production cut is uncertain, and the expected national supply in July has been lowered [1]. - On June 26th, Swiss solar panel manufacturer Meyer Burger applied for bankruptcy protection in the United States [1]. - Sunkind Energy has signed an agreement with Hangzhou ConfirmWare Technology Co., Ltd. to establish a 4GW solar battery pack production capacity in India [1].

Group 1 - In Q1 2025, the company reported a net loss of RMB 263.01 million, with total revenue of RMB 3,198.89 million and operating costs of RMB 3,006.23 million, indicating multiple negative factors have been released [1] - The multi-crystalline silicon supply-demand situation is slowly improving, with the industry expected to remain under pressure in 2025 due to high inventory levels and weak demand [1] - The company’s revenue composition for 2024 shows that multi-crystalline silicon accounts for 37.4%, while wind and solar power station construction and operation account for 35.9% and 11.3% respectively, suggesting that the company's value is severely underestimated when considering its renewable energy assets [1] Group 2 - The company has been given a "Buy" rating with a target price of HKD 5.66 per share, representing a potential upside of 32% based on a projected 8x PE for 2026 [2]