The Zhitong Finance App learned that Xinyi Solar (00968) rose by nearly 4% and rose 3.68% at press time to HK$5.35, with a turnover of HK$206 million.

According to the news, Xinyi Solar previously announced results. The group obtained revenue of HK$26.629 billion during the period, an increase of 29.62% over the previous year; profit attributable to shareholders was HK$4.187 billion, an increase of 9.61% over the previous year; and plans to pay a final dividend of HK15 cents per share.

It is worth noting that several agencies recently raised the company's target price, and Jefferies gave Xinyi Solar a “holding” rating, and the target price was raised 7% to HK$4.26. The bank believes that within the next two years, the industry's production capacity increase will exceed demand. Xinyi PV can accelerate its own production capacity expansion and prioritize market share over short-term profits, which will lead to a drop in prices and a decline in profits over many years. CITIC Lyon upgraded Xinyi Solar's rating from “outperforming the market” to “outperforming the market” and lowered the net profit forecast for FY2024 by 8% due to a slowdown in power plant growth, but the net profit forecast for FY2025 was raised by 8% due to falling costs, and the target price was raised 10% to HK$5.7 from HK$5.2.

Furthermore, Bank of America Securities said it reaffirmed Xinyi Solar's “buy” rating and raised the forecast for the 2024-26 fiscal year by 25 to 40%. The gross margin for the 2024 fiscal year is expected to be 22.6%, and the target price will increase 15% to HK$6 from HK$5.6. The company expects that last year's production will not fully meet the demand for PV installations in China, so the monthly module production plan for March this year is strong. Recently, the Group's glass inventory also fell to about 3 weeks, below the 28.6-day market average.