Glonghui, March 1 | Dahua Jixian published a research report saying that Xinyi Solar recorded a profit of HK$4.187.1 billion last year, reaching about 95% of the bank's full-year forecast, but 9% higher than the general market expectations, and the overall performance was in line with expectations. According to the report, driven by the PV module installation boom and the company's production capacity expansion, PV glass sales increased by 49.3% year-on-year last year, but the average sales price of products declined and raw materials and energy costs rose, causing the gross margin of the photovoltaic glass business to drop 2.4 percentage points to 21.4% year-on-year during the period. Dahua Jixian said that considering the possible decline in domestic PV glass prices, the profit forecast for the 2024 and 2025 fiscal year will be reduced by 17% and 11%, and the target price will be lowered from HK$10.2 to HK$5.5. According to the bank, since new photovoltaic glass production plants need to be approved, it will help slow down the pace of industry capacity expansion, enable industry leaders such as Xinyi Solar to consolidate their leading position in the market and maintain the “buy” rating of Xinyi Solar Energy.