HTSC's report states that GCL Tech (03800.HK) posted a loss of 2.971 billion RMB in the first three quarters, with the photovoltaic material business incurring a loss of 1.8 billion, mainly due to the significant decline in polysilicon and silicon wafer prices; the third quarter loss was 1.492 billion, primarily due to the company's progress in optimizing production lines and continuous reduction in cash costs.

The report indicates that GCL Tech's performance in the third quarter fell below the bank's expected loss of 1.23 billion, attributed mainly to the larger-than-expected decline in product prices. Considering the mismatch in supply and demand in the silicon material segment, high energy consumption and low efficiency production capacity may be restricted. Bulls on the company's granular silicon cost advantage lead, capacity utilization is expected to increase, market share is expected to steadily rise, with the target price raised from 1.39 yuan to 2.29 Hong Kong dollars, maintaining a 'buy' rating.

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