On August 1st, Morgan Stanley published a research report pointing out that Xinyi Solar's mid-term net profit increased by 41% year-on-year, which is in line with expectations. It mainly comes from the increase in product sales volume, the decrease in production costs, and the low base effect of the same period last year. The board of directors declared a mid-term dividend of HKD 0.1 per share, which is approximately 45% of the payout ratio. The management revealed in a conference call that based on the current supply and demand situation, it is expected that the price of 2mm glass still has downward space. At the same time, due to the delayed production time of new Chinese production lines, the effective operating capacity for the whole year is expected to decrease to 9.8 million tons. Morgan Stanley pointed out that under the double blow of weak demand and high supply, the price of photovoltaic glass has sharply fallen in the past two months, from CNY 17.5 per square meter in April to the current CNY 14, and the overall market operation pressure still exists. However, as some production capacity in the industry needs maintenance, Morgan Stanley estimates that the pressure of high supply may be slightly eased. In addition, the expected recovery in demand during the installation peak season will support the industry's fundamentals, which may slightly improve in the second half of the year. Morgan Stanley gave Xinyi Solar an "overweight" rating with a target price of HKD 5.8.