Core Viewpoint - The recent surge in A-share photovoltaic stocks, particularly Longi Green Energy and Tongwei, is attributed to regulatory changes aimed at stabilizing the industry and addressing overcapacity issues, alongside a recovery in polysilicon prices [1][3]. Industry Summary - The photovoltaic industry has faced significant challenges due to excessive competition and price dumping, leading to losses for many companies. Regulatory measures are now being implemented to control new capacity and curb disorderly competition [3]. - A proposed establishment of a large-scale polysilicon storage platform and the elimination of outdated production capacity are expected to stabilize polysilicon prices, which are crucial for the photovoltaic sector [3]. Company Summary - Tongwei, a leader in upstream polysilicon, holds a quarter of the global market share. The recent increase in polysilicon prices is expected to improve its profitability, with projections of net profits between 1.1 billion to 1.8 billion yuan for Q3 [3][4]. - Longi Green Energy, a dominant player in the midstream segment, benefits from advanced technology that reduces silicon consumption and maintains low non-silicon costs. This positions Longi to mitigate the impact of rising polysilicon prices [4]. - Both companies have recently reached new highs for the year, indicating a potential recovery after previous declines. Longi's losses have decreased significantly compared to the previous year, and its cash flow has improved [4][5].