Since the beginning of this year, the price of photovoltaic glass has continued to rise, and the price quoted in November showed an accelerated upward trend. The price of mainstream 3.2mm photovoltaic glass rose to about 44 yuan per square meter, up more than 20% from the previous month. Since July, the variety has increased by 80%. The November quotation of some small factories is as high as 50 yuan / square meter.

Stimulated by the news of the price rise of photovoltaic glass, Flat Glass Group rose, rising 6% in early trading, now up about 4%, and up more than 370% so far this year. Luoyang Glass shares once rose more than 10% today, while Xinyi Solar fell 2.8%, up 155% this year.

Photovoltaic glass high scene demeanor mainly benefits from production expansion and rapid penetration of double glass module technology. According to the Securities Times, in fact, from a few years ago, the supply of photovoltaic glass is in a relatively scarce state. Since the beginning of this year, with the promotion of thin glass and the rapid improvement of the permeability of double glass modules, domestic and foreign photovoltaic favorable policies and other factors, resulting in the current outbreak of photovoltaic glass demand.

The production expansion cycle of photovoltaic glass is relatively long, and once the upstream demand breaks out on a large scale, the production capacity of photovoltaic glass is easy to catch up with. It is understood that from now to the end of this year, there is no new capacity for photovoltaic glass in China. The order schedule of the head supplier has been relatively full, and the supply is particularly tight in the fourth quarter.

Zhongtai Securities pointed out that in the peak demand season in the fourth quarter, the permeability of superimposed double glass increased, glass supply was tight, while inventory levels decreased, raw material prices rose, and glass prices rose sharply, with quotations as high as 41-45 yuan.

In terms of policy, the Ministry of Industry and Information Technology recently solicited opinions on the measures for the implementation of capacity replacement in the cement Glass Industry (revised draft). Photovoltaic glass is still included in the scope of capacity replacement of flat glass.BoCom believes that it may contribute to the long-term maintenance of tight supply..

JPMorgan Chase & Co saidPhotovoltaic glass prices rose more than expected, and profits from mainstream suppliers are expected to be further boosted in the fourth quarter.In the long run, the bank is optimistic about the future of solar glass in the photovoltaic industry and is optimistic about the prospect of demand growth for solar glass, which is being driven by global incentives to reduce carbon emissions.

Everbright Securities believes that in the short term,Under the situation of mismatch between supply and demand, the price of photovoltaic glass will remain high, and the trend of "both quantity and price rise" of 2020Q4 photovoltaic glass will continue.. In the long run, it is optimistic about the long-term development of the photovoltaic industry, and the permeability trend of superimposed double glass modules is not reduced.The demand for photovoltaic glass is expected to remain high.

At present, China has become the largest producer of photovoltaic glass, with a global market share of more than 90%. Pacific Securities pointed out thatDue to the existence of scale effect, technical capital barrier, customer stickiness and other factors, large enterprises have obvious competitive advantage, and the industry leading advantage is more significant.

According to PVinfolink data, the cumulative export volume of Chinese components reached 33.8GW in the first half of 20 years, and the market share of leading enterprises in the export market was further expanded.

$Flat Glass Group (06865.HK) $Photovoltaic glass production capacity accounts for 20% of the domestic, is one of the leaders of the domestic photovoltaic glass industry, obvious cost advantage, product gross profit margin industry leading. A few days ago, the company announced its three-quarter report for 2020, with total operating revenue of 4.017 billion yuan, an increase of 18.81% over the same period last year, and net profit of 812 million yuan, an increase of 59.94% over the same period last year.

Guojin Securities commented that since the second half of the year, glass prices have continued to exceed expectations, based on the latest product prices, as well as prospects for next year's supply and demand and the progress of enterprises' new production capacity.Flat Glass Group sharply raised his annual net profit forecast for 2020-2022E to 14.3 (+ 36%), 24.2 (+ 61%) and 31.6 (+ 57) billion yuan, corresponding to EPS of 0.73,1.24,1.62 yuan respectively.The company maintains a "buy" rating on its A / H shares at 16 times 2021, respectively, corresponding to 30 PE of its current A / H shares.

Also belong to the first echelon$Xinyi Solar (00968.HK) $.JPMorgan Chase & Co recently published a research report, maintaining the "overweight" rating of Xinyi Solar, pointing out that the company has become an industry leader and can increase its market share in the consolidation market.

$Luoyang Glass Co. (01108.HK) $Originally mainly engaged in the manufacture and sales of float glass, the products have filled the gaps in domestic float glass production technology for many times, and are the enterprises with the leading core technology of float glass production in China. At present, it is an important photothermal glass production base and photovoltaic glass production base in China. In the first three quarters, the company's revenue rose 28.03% to 1.694 billion yuan compared with the same period last year, and its net profit increased by 76.75% to about 82.0114 million yuan.