What bullish news is worth paying attention to as the solar sector rebounds in Hong Kong shares? How does the market view the future market trend as the export volume of photovoltaic components rose in June?
On July 25th, Financial Associated Press (Editor Feng Yi) reported that the Hong Kong stock market fell sharply today, but the solar sector rose against the trend. As of the time of publication, Flat Glass (06865.HK) rose by more than 7%, Xinyi Solar (00968.HK) rose by more than 3%, Triumph New En (01108.HK) and Xinte Energy (01799.HK) followed the same trend.
On the news front, according to data from the General Administration of Customs, the export value of domestic photovoltaic components reached RMB 19.2 billion in June, down 26.7% year-on-year, but up 3.1% month-on-month, continuing the trend of recovery.
In addition, according to the report of Zhou Xuhui, an analyst at East Money Information, as calculated by infolink, the average export price of components last month was 0.12 USD/W. In June, the export volume of photovoltaic components was approximately 21.84 GW, a year-on-year increase of 20.66% and a month-on-month increase of 3.02%. Regardless of exchange rates, the recovery of the export volume of photovoltaic components is even more apparent.
On the other hand, as the photovoltaic industry chain is generally facing a decline in performance and losses, the expectation of supply-side reform in the industry has continued to strengthen in the near term.
According to reports, at the photovoltaic industry's seminar on the development review of the first half of 2024 and prospects for the second half held today, Wang Bohua, Honorary Director of China Photovoltaic Industry Association, said that the adjustment of the photovoltaic industry should be both heavy and fast. The industry is currently facing fierce internal and external competition and needs to "travel light". The integration time should not be too long.
Wang Bohua stated that it is necessary to promote the elimination of backward production capacity, encourage enterprise mergers and reorganizations, and that the management department needs to strengthen the guidance of advanced production capacity construction and local governments should strictly control unreasonable market rescue actions. Enterprises should be cautious in new investments. Financial institutions should avoid providing funding to the production capacity that will be eliminated.
Tang Junnan, an analyst at Zhongyuan Securities, also pointed out in a recent report that the National Energy Administration had also requested reasonable guidance for the construction and release of upstream photovoltaic production capacity to avoid the duplication of low-end production capacity.
Zhongyuan Securities believes that at present, the price of photovoltaic products has fallen below the cost, and various links in the industry chain are facing greater profit pressure, which will accelerate industry shuffling. In the short term, the valuation of the photovoltaic sector is at a historical low, and the stock prices of individual stocks in the secondary market have rebounded from oversold levels, but a fundamental support is still needed to reverse the trend.