Hong Kong Stock Concept Tracking | The National Standard for PV Energy Consumption Is Imminent, and Industry Fundamentals Are Marginally Improving (with Concept Stocks)

The Zhitong Finance App learned that on November 10, the General Office of the People's Government of Anhui Province issued the “Fifteenth Five-Year Plan” for the High-Quality Development of the Anhui Development Zone. Among them, it is proposed to promote the construction of new ground-based public parking lots with high-power charging infrastructure, and build a number of demonstration stations with integrated optical storage and charging. By 2030, achieve a PV coverage rate of at least 75% on the roof of suitable buildings in development zones.

Data show that in the first half of this year, 71.77 million kilowatts of PV were added to the grid nationwide, including 29.55 million kilowatts of centralized photovoltaics and 42.22 million kilowatts of distributed photovoltaics. Distributed photovoltaics became the main growth force of the industry. In recent years, as a new energy form close to the terminal energy market, distributed photovoltaics has relied on the unique advantages of “decentralized layout, local use, nearby consumption, and flexible adaptation” to enter the fast track of development, achieving full popularity from point to point, from city to rural area.

From January to September 2026, the country's cumulative installed capacity of power generation was 4.13 billion kilowatts, an increase of 11.2% over the previous year; of these, the installed capacity of solar power generation was 1.31 billion kilowatts, an increase of 16.5% over the previous year. From January to September, 110.83 GW of PV installed capacity was added in China, of which 13.64 GW was added in a single month in September, up 41.2% year on year and 23.6% month on month. Installed capacity in a single month increased year on year for two consecutive months.

From a policy perspective, the Ministry of Industry and Information Technology and various departments jointly issued three mandatory national standards for photovoltaic energy efficiency, including “Energy Consumption Limits and Energy Efficiency Levels for Crystalline Silicon Photovoltaic Modules and Inverters”, and “Energy Consumption Limits for Silicon Polycrystalline and Germanium Unit Products”, which were issued by the Ministry of Industry and Information Technology in July of this year, will be officially implemented on January 1, 2027. According to CICC estimates, after the implementation of the new national standard, the overall production capacity of the industry is likely to be reduced by 30% or more; in the next 2 to 3 quarters, the industry's supply and demand pattern will be further optimized, and domestic market demand is expected to pick up slightly in the second and third quarters of 2027.

There are also signs of marginal improvement in the fundamentals of the photovoltaic industry. Some leading photovoltaic companies achieved profit recovery in the third quarter. Aixu Co., Ltd. reversed losses in a single quarter, Jingke Energy reduced losses by more than 80% month-on-month, Longji Green Energy reduced losses by more than 40% month-on-month, and operating cash flow was positive.

It is worth mentioning that the management of Sunshine Power said during the institutional investor conference that energy storage shipments are expected to rise above 20 GWh in the fourth quarter. The growth rate of new installed capacity in the global energy storage market is conservatively estimated to be above 30% next year. Next year's energy storage shipments are expected to nearly double from this year's level, further strengthening the market's expectations for a high increase in demand for optical storage.

Furthermore, the trend of asset consolidation in the industry is accelerating. Cases such as Tongwei Co., Ltd.'s acquisition of Qinghai Lihao and TCL Zhonghuan's acquisition of a new energy are viewed by capital as a key signal of production capacity clearance and pattern optimization.

According to Open Source Securities, BloombergNEF expects the world to add 618 GW of PV installations in 2027, an increase of about 5.8% over the previous year, which is expected to support increased demand in markets such as India, Southeast Asia, and Africa. The implementation of mandatory standards for photovoltaic energy consumption and energy efficiency in 2027, combined with cost accounting regulations and corporate production cuts, is expected to drive the exit of backward production capacity and ease competition at low prices. Currently, prices in the industrial chain have stabilized, but the continued recovery of profits throughout the industry still depends on inventory removal, terminal price acceptance, and improvement in the supply and demand pattern.

There is now a “blue wave” in the US midterm elections. The Democratic Party has swept through both houses, and IRA clean energy subsidies, energy storage, and power grid investment support are expected to resume. The League of Nations Minsheng Securities pointed out that the Democratic Party's victory in the midterm elections reduced the uncertainty of North America's clean energy policy significantly. Previously, several Democratic senators had requested the resumption of frozen or cancelled clean energy funding, and the policy side is expected to increase North America's willingness to invest in photovoltaics in the future.

Related concept stocks:

Follett Glass (06865): In the first three quarters of 2026, the company achieved operating income of 9.582 billion yuan, a year-on-year decrease of 23.12%; net loss attributable to shareholders of listed companies was 836 million yuan, profit of 638 million yuan for the same period last year; and a basic loss of 0.36 yuan per share.

GCL Technology (03800): GCL Technology announced on October 19 that the company signed a non-legally binding memorandum of understanding with the seller to acquire about 81.91% of the target shares of Sichuan GCL Lithium Battery Technology Co., Ltd., at a preliminary estimated cost of about 2.5 billion yuan (equivalent to about HK$2,936 billion).

Xinyi Solar (00968): The company is one of the world's largest photovoltaic glass manufacturers, with a market share of over 30%. On October 30, Xinyi Solar issued an announcement stating that the company cancelled 1 million shares already purchased on the same day.