Core Viewpoint - The photovoltaic industry is currently experiencing an imbalance between supply and demand, with the core issue being the need for capacity clearance driven by anti-involution policies [1][2] Supply and Demand Dynamics - The photovoltaic industry has excess capacity across all segments, with stable component production in the short term. However, uncertainty in domestic demand is expected in 2026 due to significant price drops in mechanism electricity compared to coal-fired power [2] - The anti-involution policies are crucial for addressing the supply-side issues, with the effectiveness of these policies being a key factor in the industry's recovery [2] Price Trends and Capacity Clearance - The rectification of below-cost sales has shown significant results, with silicon material prices rising from 34,000 CNY/ton to approximately 52,000 CNY/ton, surpassing the cost levels of leading enterprises. The prices of silicon wafers and batteries have followed suit, while component price increases remain limited [3] - The new energy consumption standards for polysilicon are expected to be a significant means for capacity clearance, with the new standards set to be implemented by the end of 2026 [3] Inventory and Production Control - The industry is currently facing high inventory levels, particularly in the silicon material segment, with total inventory estimated at 400,000 to 500,000 tons. The return to normal inventory levels by 2026 will be challenging unless production is restricted to 80,000 tons per month [4] - The effectiveness of production control measures will be a critical factor in the industry's marginal recovery and overall market sentiment [4] Investment Opportunities - The anti-involution trend is expected to benefit leading enterprises in the photovoltaic sector, as policies push for a return to reasonable profit levels across the supply chain [4] - The industry is optimistic about BC batteries due to their differentiated advantages and the potential of TOPCon 3.0 technology, which is expected to achieve significant power outputs by the end of the year [5] - There is a strong demand for cost-reduction strategies in battery production, particularly in silver-free and low-silver solutions, making companies advancing in these areas attractive investment opportunities [5]

Core Viewpoint - The photovoltaic industry is currently experiencing an imbalance between supply and demand, with the core issue being the push for capacity clearance driven by anti-involution policies [1] Group 1: Industry Dynamics - The photovoltaic industry is facing a supply greater than demand across all segments, with stable component production in the short term [1] - The implementation of new energy consumption standards for polysilicon is expected to be a significant means of capacity clearance [2] - High inventory levels, particularly in the polysilicon segment, are a concern, with total inventory estimated at 400,000 to 500,000 tons [3] Group 2: Price Trends - The rectification of below-cost sales has shown significant results, with polysilicon prices rising from 34,000 CNY/ton to approximately 52,000 CNY/ton [2] - The price of silicon wafers and batteries has followed the increase in polysilicon prices, while component price increases have been limited [2] Group 3: Investment Recommendations - The company recommends focusing on leading enterprises in the photovoltaic supply chain, such as Tongwei Co., Daqo New Energy, LONGi Green Energy, JA Solar, Trina Solar, and Canadian Solar, which are expected to benefit from the anti-involution trend [4] - The company highlights the potential of BC batteries, which are currently enjoying a premium over TOPCon technology, and suggests monitoring companies like Aiko Solar and LONGi Green Energy [4] - The advancement of TOPCon 3.0 technology is anticipated to enhance component power output, with leading companies likely to benefit from this trend [4] - There is a strong demand for cost reduction strategies in battery production, particularly in silver-free and low-silver solutions, with companies like Aiko Solar and suppliers of paste solutions being of interest [4]