Jingu information | Bocom Intl issued research reports, stating that gcl tech (03800) recorded a third-quarter net loss attributable to the parent of 1.492 billion yuan, narrowing by 0.02 billion yuan compared to the previous quarter. The cash cost per ton of polysilicon (including R&D expenses) is 0.0332 million yuan, which still decreased by 0.002 million yuan on a quarter-on-quarter basis despite the reduction in production capacity utilization, with significant technological improvement.

The bank points out that after severe losses, there has been a recent strong call from the industry for supply-side reform. The bank predicts that the government may introduce policies to raise electricity consumption standards, accelerate industry supply reduction, price recovery, and amplify the advantages of low electricity consumption for polysilicon.

The bank raised its profit forecast for 2025/26 and increased the target price to 1.77 Hong Kong dollars (previously 1.31 Hong Kong dollars). The bank is bullish on the company's continuous improvement in polysilicon market share due to cost advantages. However, the recent sharp rise in stock price has largely reflected the bullish expectations of supply-side reform. Further valuation improvement awaits policy implementation, maintaining a neutral stance.