The solar energy industry has good long-term development prospects. In the short term, due to the shrinking demand in Europe and the rapid construction of domestic production capacity, the industry is in a period of reshuffle and adjustment. The decline in profitability of silicon wafer enterprises has weakened their power to expand production, and Tianlong Optoelectronics's photovoltaic equipment sales are facing some difficulties in the short term.

By adjusting the profit forecast of the company according to the current situation of the photovoltaic industry, it is estimated that the EPS of the company will be 0.65 yuan, 0.85 yuan and 1.38 yuan respectively from 20111 to 20113. The industry is in a short-term adjustment period, and the investment rating is adjusted to "neutral". However, the company's share price fell sharply in the early period, and there is likely to be a better technical rebound.

The prosperity of the photovoltaic industry is declining, and investors need not be overly pessimistic. Since the introduction of feed-in tariff in China on August 1, it is understood that the scale of power stations submitting applications for installation has reached several gigawatts, and the rise of the domestic market in 2002 is expected to make up for the contraction in overseas demand. At the same time, the overall price drop of solar products will promote the faster the economic benefits of solar power generation. At present, photovoltaic power generation has achieved the power generation cost target of 1 yuan per kilowatt-hour by 2012 ahead of schedule. It is expected that the next round of demand brought about by photovoltaic parity may also be earlier than expected in 20113-2014. The demand for photovoltaic equipment will benefit from the elimination of production capacity after this round of fierce price war, becoming the forerunner of the next round of industry business cycle. Tianlong optoelectronic products are rich in structure, which has laid a good foundation for future growth. It is suggested that long-term value investors can take advantage of the low point of the industry to choose the right time to buy.