UBS Group released a research report stating that it maintains a 'buy' rating for Xinyi Solar (00968) with a target price of 5.7 Hong Kong dollars. The company's capacity is fully running in August and is in a balanced supply and demand state. The management stated that the decision to reduce utilization rate depends on demand. With the support of reduced supply, the average selling price of solar glass in September may tend to stabilize, but future price trends may depend on the demand recovery in the fourth quarter of this year.

The UBS report stated that Xinyi Solar attended the investment conference held by the bank yesterday (2nd), sharing the latest developments of the solar glass industry. It indicated that the industry's supply reduction from July to August due to maintenance and production cuts may reach around 0.01 million tons per day, accounting for approximately 10% of the total supply, which is lower than the 30% reduction reported by some media outlets. The company's management believes that there is a need to further reduce the supply by 0.01 million tons per day to balance supply and demand.