Bocom Intl's research report pointed out that the price of photovoltaic glass has been continuously falling since May, due to serious losses. Since July, the industry has been continuously reducing production. Currently, supply and demand have been balanced. The bank expects that with continued production cuts and increased module production in the future, glass is expected to enter a destocking cycle, and price rebound is expected. Under the pressure of losses, the industry's recent calls for supply-side reforms have been increasing. The bank expects the government to introduce policies such as raising energy consumption standards to accelerate the clearance of photovoltaic glass supply and price recovery, benefiting companies with lower energy consumption such as leading enterprises.

The bank pointed out that due to the larger-than-expected drop in the price of photovoltaic glass and the company's output lower than expected, the bank lowered Xinyi Solar's (00968) profit for 2024-2026 by 25%/35%/29%. Compared to the lowest closing price on September 17, the company's stock price has only increased by 18%, much lower than Flat Glass Group's (06865) 47%. The company's 2025 P/E ratio / P/B ratio is only 10.8 / 0.84 times, much lower than Flat Glass Group's 24.5 / 1.18 times. The company's photovoltaic power generation business is relatively stable in profitability, and can provide sustainable cash flow. The debt ratio is also significantly lower than the industry average of photovoltaic glass. Therefore, when the industry is in a state of losses and unable to expand production, the company can still generate overall profits and expand production against the trend, maintaining a favorable position in competition. Due to the current uncertain profit trend of the company, the bank has switched to using P/B ratio valuation, based on 1.03 times the 2025 P/B ratio (a 14% discount compared to the 1.20 times discount given to Flat Glass Group, which is the average discount level this year), and has revised the target price down to 4.04 Hong Kong dollars (from the original 4.09 Hong Kong dollars) and raised it to buy.