The Zhitong Finance App learned that CITIC Lyon released a research report saying that Xinyi Solar Energy (00968) was upgraded from “outperforming the market” to “outperforming the market” and the net profit forecast for the 2024 fiscal year was lowered by 8% due to a slowdown in power plant growth, but the net profit forecast for the 2025 fiscal year was raised 8% due to falling costs, and the target price was raised 10% from HK$5.2 to HK$5.7.

The report points out that the solar industry is still cautious about overcapacity, including solar glass. However, the stock's price correction of more than 80% since 2021 appears to largely reflect the industry's continued weakness. The bank expects the number of solar installations to increase to 420-440 GW in 2024. Overall, CITIC Lyon anticipates that solar glass overcapacity will still exist, but similar overproduction of solar modules may make glass demand more elastic than market expectations.