The Zhitong Finance App learned that Xinte Energy (01799) fell by more than 3%. As of press release, it was down 3.4% to HK$8.81, with a turnover of HK$27.872 million.

According to the news, polysilicon prices continue to weaken. On the supply side, silicon has fallen below cash costs, the maintenance situation has intensified, and price appreciation is strong. On the demand side, the transaction situation weakened again this week, and inventory pressure in the silicon wafer sector remained unabated, leading to weak procurement intentions. According to data from the Silicon Industry Branch on May 15, the transaction price range for n-type silicon rod-shaped silicon was 410-45,000 yuan/ton, and the average transaction price was 43,000 yuan/ton, down 5.08% from the previous month. The transaction price range for p-type compact materials was 340-39,000 yuan/ton, and the average transaction price was 37,300 yuan/ton, down 4.36% from the previous month.

According to BOC International, as polysilicon prices fell more than expected, the bank lowered the company's net profit from 2024-26 to 3.5/8.2 billion yuan and the target price to HK$12.04. A previous report by HSBC Research also pointed out that the recent sharp drop in polysilicon prices has exceeded this forecast. The bank believes that the current low price may continue until supply is cut more drastically. The target price of Xinte Energy was reduced from HK$10.2 to HK$7.9, and the rating was downgraded to “reduced holdings”.