Komo: Lowering the rating of Xinyi Solar (00968) to “neutral”, and the target price was reduced to HK$3.7

The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that the rating of Xinyi Solar (00968) was lowered to “neutral”, and the target price was lowered from HK$4 to HK$3.7. Following the bank's reduction in the PV demand forecast, the supply and demand for solar glass was further overtrending, which had an adverse impact on Xinyi Solar Energy.

According to the report, mainland solar energy stocks have risen by about 28% since September, partly due to the impact of the risk appetite environment. Regarding PV demand, the bank noticed differences between regions. Emerging markets showed strong performance, while the mainland was affected by grid restrictions and high base numbers. The bank believes that the impact of fiscal stimulus may be limited. Furthermore, demand for energy storage systems (ESS) is showing strong growth.