The photovoltaic and wind power sectors weakened today. Follett Glass's AH shares, which were strong earlier, all retreated sharply today. H shares fell more than 8% today, and A shares have already fallen 16% from their highest level in the previous period. Dongfang Cable plummeted 9% today, while individual stocks such as Sun Yue shares, Longji shares, and Jingao Technology fell one after another.

In terms of the price of photovoltaic glass, the price of photovoltaic glass increased by more than 50% in the previous period from July to October.In the short term, we repeat once again that the logic of optical glass prices, the core driver of stock prices, continues.

The rapid rise of photovoltaic glass in this round has benefited from the large-scale expansion of module production and the rapid penetration of double glass module technology. The supply of photovoltaic glass is in short supply. The boom in the photovoltaic industry, large-scale expansion of module production in 2020, and the scale of production expansion exceeded 200 GW, driving a surge in demand for photovoltaic glass. Double glass module technology has been applied on a large scale, the market has penetrated rapidly, and it is difficult to find a single sheet of photovoltaic glass.

Judging from the long-term development trend, the current cost of generating 7 kilowatts of electricity from photovoltaics can be on par with thermal power. Many regions are even lower than the cost of thermal power, and photovoltaics have semiconductor properties, which are in line with Moore's law, and the cost continues to decline. This will have a development advantage over other clean energy sources.

Therefore, today's collective pullback in the photovoltaic sector can be seen as a profit take-back. Coupled with the rapid rise in this round, some future gains were overdrawn early, which is a reasonable return to the trend of valuation.