Core Insights - The 18th World Solar Photovoltaic and Energy Storage Industry Expo (WPV Expo 2026) will be held from September 16-18, 2026, in Guangzhou, China, showcasing the theme of "Technological Innovation and Global Cooperation" [1] - The expo is expected to attract over 2,000 domestic and international exhibitors, covering an exhibition area of 180,000 square meters, and receiving more than 300,000 professional visitors from over 100 countries and regions [1][8] - The event aims to serve as a significant platform for promoting technological exchanges and trade cooperation in the photovoltaic and energy storage sectors [1][7] Exhibition Scale and Impact - The exhibition area has increased by 200% compared to 2023, growing from 60,000 square meters to 180,000 square meters, with the number of participating companies rising from over 900 to more than 2,000 [8] - The expo will feature a wide range of products, including photovoltaic cells, inverters, energy storage systems, and smart operation and maintenance equipment, with leading companies launching high-efficiency photovoltaic modules and long-life energy storage batteries [8] - The event will also include interactive zones for photovoltaic and energy storage experiences, enhancing visitor engagement through simulated demonstrations of technology principles [8] Internationalization and Networking - The expo has evolved from a regional event to an international brand since its inception in 2009, with a formal rebranding in 2020 to emphasize its global strategy [7] - The event will facilitate connections between Chinese enterprises and international brands, promoting technology output and market expansion [7] - The organizing committee plans to distribute millions of tickets and conduct extensive outreach to attract high-end professional audiences, including power companies, renewable energy developers, and research institutions [9]

Investment Rating - The report rates the industry as "Outperforming the Market" [1] Core Insights - In August 2025, China's solar cell module exports reached $2.921 billion, a year-on-year increase of 19.8% and a month-on-month increase of 31.4%, with an estimated export volume of 40.42 GW. The focus of domestic manufacturers has shifted to overseas markets due to domestic policy changes and a surge in demand [2] - The inverter exports totaled $878 million in August 2025, showing a year-on-year increase of 1.93% but a month-on-month decrease of 3.63%. The export volume reached 3.8461 million units, down 27.26% year-on-year and 16.39% month-on-month. The European market is stabilizing, while demand in Asia continues to adjust [2] - The solar storage industry has seen a decline in market conditions over the past year, but 2024-2025 may represent a bottoming period for industry profits. The balance of supply and demand is expected to improve, particularly for inverters, which have higher competitive barriers [3] Summary by Sections Export Data - In August 2025, the export volume of solar cell modules to Europe was 11.61 GW, with year-on-year growth of 39.41% and month-on-month growth of 23.84%. Emerging markets are showing significant growth, with exports outside Europe reaching 28.81 GW, a year-on-year increase of 67.77% and a month-on-month increase of 36.54% [2] - Specific provincial data shows that Zhejiang exported 1.4482 million inverters in August, a month-on-month decrease of 24.1%, while Jiangsu and Guangdong also reported declines in export volumes [2][3]

Core Insights - The CEO of TCL Zhonghuan stated that global photovoltaic installation maintained resilient growth in the first half of 2025, with a short-term surge in demand in the domestic distributed market [1] - From May to June 2025, demand in the industry chain gradually cooled, leading to an imbalance in supply and demand across various segments, resulting in continuous price declines [1] - The company will continue to focus on technological advancements and opportunities in the semiconductor materials sector, increasing investment in research and development [1] Company Overview - TCL Zhonghuan is a leading global manufacturer of photovoltaic materials, supplier of photovoltaic cells and modules, and provider of smart photovoltaic solutions [1] - The company adheres to a green ecological philosophy of "contributing blue skies and white clouds for humanity," emphasizing innovation-driven development [1] - TCL Zhonghuan aims to lead the industry in advanced technology and manufacturing methods, continuously promoting technological innovation in the photovoltaic sector for high-quality, sustainable, and leapfrog development of the global green energy industry [1]

Core Insights - TCL Zhonghuan is navigating the photovoltaic industry, which is currently at a cyclical low, with demand fluctuating due to phase-based rush installations [1] - The company aims to enhance competitiveness by focusing on cost reduction, customer-centric strategies, and capturing opportunities in industry restructuring [1] - TCL Zhonghuan is committed to innovation and sustainable development, striving for breakthroughs in key technologies like BC batteries to ensure financial health and sustainable operations [1] Company Strategy - The company plans to adjust operational strategies in response to market changes, emphasizing extreme cost reduction and customer engagement to increase market share [1] - TCL Zhonghuan is focused on reinforcing its business strengths while addressing weaknesses to prepare for future growth [1] Industry Position - As a leading manufacturer in the photovoltaic materials sector, TCL Zhonghuan promotes a green ecological philosophy and aims to drive technological innovation within the industry [1] - The company is dedicated to high-quality, sustainable, and leapfrog development in the global green energy sector [1]

Investment Rating - The report maintains a "Buy-A" investment rating for TCL Technology, with a target price of 5.5 CNY for the next six months [5]. Core Insights - TCL Technology reported a revenue of 85.56 billion CNY for the first half of 2025, representing a year-on-year growth of 6.65%, and a net profit of 1.884 billion CNY, which is an increase of 89.26% compared to the same period last year [1]. - The semiconductor display segment has significantly improved its performance due to increased demand driven by domestic subsidy policies and the consolidation of production capacity through acquisitions [2]. - The photovoltaic segment is actively expanding its overseas business and enhancing its competitive edge, with the company leading in global market share for monocrystalline silicon wafers [3]. Summary by Sections Financial Performance - For the first half of 2025, TCL Huaxing achieved a revenue of 50.43 billion CNY, a year-on-year increase of 14.4%, and a net profit of 4.32 billion CNY, up 74.0% [2]. - The report forecasts revenues of 192.18 billion CNY, 214.86 billion CNY, and 239.57 billion CNY for 2025, 2026, and 2027 respectively, with net profits projected at 6.74 billion CNY, 9.21 billion CNY, and 10.89 billion CNY for the same years [4]. Market Position and Strategy - The company completed the acquisition of LG Display's subsidiaries, enhancing its production capacity to 180k/month and creating synergies between its T9 and T11 projects [2]. - In the photovoltaic sector, TCL Technology is focusing on improving manufacturing capabilities and expanding its market presence internationally, particularly through partnerships for overseas silicon wafer production [3]. Valuation Metrics - The report assigns a 17x PE ratio for 2025, corresponding to the target price of 5.5 CNY, indicating a favorable valuation outlook [4].

Investment Rating - The report maintains a rating of "Accumulate" for the company [4][6]. Core Views - The company is expected to see a revenue recovery from 2025 onwards, with projected revenues of 61.45 billion, 69.65 billion, and 81.27 billion for 2025, 2026, and 2027 respectively, reflecting a growth rate of 23.1%, 128.2%, and 197.0% [4]. - The company has demonstrated a commitment to improving profitability through stock option incentives, aiming for a reduction in net loss by at least 5% in 2025 and achieving positive net profit in 2026 [3]. - The company has maintained a strong market position in solar cell module shipments, achieving 33.79 GW in the first half of 2025, despite a year-on-year revenue decline of 38.35% [2]. Financial Summary - The company's revenue for 2023 is projected at 81.56 billion, with a net profit of 7.04 billion, while 2024 is expected to see a decline in revenue to 70.12 billion and a net loss of 4.66 billion [1]. - The operating cash flow for the reporting period reached 45.1 billion, a significant increase of 342.44% year-on-year, indicating improved cash flow management [3]. - The company’s gross margin for the solar module segment was reported at -5.98%, a decrease of 10.51 percentage points year-on-year, but the company has managed to reduce losses per watt shipped [2].

Investment Rating - The report maintains a "Recommendation" rating for the photovoltaic industry [3] Core Viewpoints - The industry is gradually bottoming out, with expectations for profit recovery driven by policy adjustments and supply-demand improvements [6][30] - Domestic installation driven by a rush in demand has led to significant growth in the first half of 2025, with global installations expected to continue increasing [10][19] Summary by Sections 1. Domestic Installation Growth - The domestic rush in installations has resulted in a doubling of installed capacity in the first half of 2025, with a forecast of 270-300 GW for the year, reflecting a year-on-year growth of approximately 3% [10][11] - From January to July 2025, domestic new photovoltaic installations reached 223.25 GW, a year-on-year increase of 81% [10][11] 2. Performance Under Pressure - The photovoltaic sector's core companies reported revenues of 391.99 billion yuan in the first half of 2025, a decrease of 9.7% year-on-year [30][31] - In Q2 2025, revenues were 217.44 billion yuan, down 8.5% year-on-year but up 24.6% quarter-on-quarter [30][33] - The overall profit margin is under pressure due to low prices across the supply chain, with a net profit loss of 7.34 billion yuan in the first half of 2025 [41][43] 3. Inventory and Production Capacity - Inventory pressures remain significant across the supply chain, with many segments experiencing high inventory levels despite some reductions in Q2 2025 [30][31] - Fixed asset growth has slowed, indicating limited new production capacity additions, with most segments seeing growth rates below 10% [30][31] 4. Investment Recommendations - The report suggests focusing on leading companies with stable operations and potential for profit recovery, particularly in the silicon material and integrated component sectors [6][30] - Companies recommended include Tongwei Co., GCL-Poly Energy, Longi Green Energy, and JinkoSolar among others [6][30]

Investment Rating - The report assigns a rating of "Outperform" for the industry [1]. Core Insights - The focus of shipments is shifting towards overseas markets, with strong demand from European industrial and commercial sectors. In July 2025, China's total export value of solar cells and modules reached $2.223 billion, a year-on-year decrease of 14% but a month-on-month increase of 1.1%. The corresponding total export volume was 30.48 GW, reflecting a year-on-year increase of 26.1% and a month-on-month increase of 1.5% [2]. - The inverter exports in July 2025 totaled $911 million, with a year-on-year increase of 15.83% but a month-on-month decrease of 0.65%. The monthly export volume reached 4.6001 million units, showing a year-on-year decrease of 12.23% and a month-on-month decrease of 10.31% [2]. - The report highlights that the solar storage industry has experienced a decline in prosperity over the past year, with no clear bottom in performance metrics. However, the period of 2024-2025 may represent a bottoming out for industry profits, with a focus on the supply chain's production changes and price trends [3]. Summary by Sections Export Data - In July 2025, the export volume of solar cells to various countries included 3.57 GW to the Netherlands, 0.71 GW to Spain, and 5.41 GW to India, with India showing a significant year-on-year increase of 57.05% [12]. - The report notes that the export of inverters from Zhejiang province reached 1.9072 million units, with an export value of 1.543 billion yuan, reflecting a month-on-month increase of 8% [2]. Market Dynamics - The European inverter market is recovering, with strong downstream storage demand. The report indicates that the export value of inverters from Guangdong province was 2.441 billion yuan, with a month-on-month increase of 1% [2]. - The report suggests that the competitive landscape in the photovoltaic industry is evolving, with older capacities facing losses and new projects being delayed. This non-rational competition is accelerating capacity clearance, indicating a potential for improved market conditions [3].

Policy - The meeting held by six ministries aimed to regulate the photovoltaic industry and promote sustainable development, emphasizing the importance of maintaining a fair competitive order [3] - The China Photovoltaic Industry Association (CPIA) issued an initiative to resist malicious competition below cost and called for optimizing bidding rules to prioritize technical evaluation over price [3] Industry Development - Chongqing's hydrogen station development plan aims to establish 10 hydrogen stations by 2027 with a daily hydrogen supply capacity of 15 tons, increasing to 30 stations and 70 tons by 2035 [4] - The establishment of a national hydrogen vehicle industry measurement testing center has been approved to enhance the competitiveness of the hydrogen vehicle industry [5] Market Events - Trump's comments on renewable energy projects have negatively impacted the solar sector, causing stock price declines for companies like Sunrun and First Solar after a previous surge [6] - China's new energy storage installations have surpassed 100GW, marking a 110% year-on-year increase, with projections of reaching 236.1GW by 2030 under conservative estimates [6] Corporate Developments - T1 Energy, a U.S. solar manufacturer partly owned by Trina Solar, signed a supply agreement with Corning to provide silicon wafers for solar cell production starting in 2026 [8] - Google signed a power purchase agreement with Kairos Power for nuclear energy to supply its data centers, with plans to increase the power output of the Hermes 2 nuclear plant [9]

Investment Rating - The report maintains a "Buy" rating for the wind power sector, particularly for the complete machine segment, due to strong performance and recovery in profitability [6][12][13]. Core Insights - The wind power sector is experiencing a significant recovery, with Goldwind Technology reporting a strong half-year performance, achieving a revenue of 28.5 billion yuan, a year-on-year increase of 41.3% [6][7]. - The lithium battery sector is seeing a price increase in lithium hexafluorophosphate, with the market average price reaching 54,000 yuan per ton, up 1.89% from the previous week [24]. - The photovoltaic and energy storage sectors are optimistic, with ongoing administrative support and a significant increase in exports despite seasonal downturns [19][22]. Wind Power Sector Summary - Goldwind Technology's manufacturing profitability has improved significantly, achieving a positive profit for the first time since 2022, driven by a 71.2% year-on-year increase in sales revenue for wind turbines and components [7][8]. - The company has accelerated its overseas business development, with overseas sales reaching approximately 8.38 billion yuan, a year-on-year increase of 75.3% [8]. - The bidding scale for wind turbines from state-owned enterprises has rebounded significantly, with a total of about 8.3 GW since August, indicating a recovery in demand [9][12]. Lithium Battery Sector Summary - The price of lithium hexafluorophosphate continues to rise, supported by raw material costs and limited market supply, with companies generally refusing to transact at lower prices [24]. - The solid-state battery industry is progressing, with significant developments in production capabilities and partnerships to enhance commercialization [24][25]. Photovoltaic & Energy Storage Sector Summary - A multi-department meeting on the photovoltaic industry has been held to enhance competition order and promote sustainable development [19][20]. - Despite a seasonal decline in July, photovoltaic exports remain strong, with a total of 31.7 GW exported, a year-on-year increase of 10% [22]. - The report recommends companies like Sungrow Power and Canadian Solar for continued investment due to their strong market positions [19][22]. AIDC Sector Summary - The liquid cooling sector is experiencing consolidation, with a long-term positive outlook for domestic companies in the global market [14][18]. - The establishment of the Intel UQD alliance indicates growing recognition of domestic liquid cooling component manufacturers [16][18]. Hydrogen and Fuel Cell Sector Summary - The SOFC technology is gaining traction due to power shortages and tight gas turbine supplies in the U.S., with significant growth opportunities anticipated [27][28].