Citigroup released a report stating that Xinyi Solar (00968.HK) is expected to underperform in the first half of the year due to solar glass prices falling by 2-3% in mid-May and an additional 4-6% in early June, as well as falling behind in new capacity. The bank predicts that due to a low base in the first half of last year, the company's net profit in the first half of this year will increase by 37% year-on-year to 1.912 billion yuan.

According to Citigroup forecast, Xinyi Solar's net profit is expected to decline by 9-11% from 2024 to 2026, mainly due to a decrease in sales and power generation of solar glass. Target price has been lowered from 5.8 yuan to 5.3 yuan. Despite recent weak demand, due to cost advantages and a stable market structure, there is resilient profitability, as well as a consideration of 8.2 times the 2024 price-to-earnings ratio, 1.1 times the price-to-book ratio, and a 5.8% yield, maintaining the 'buy' rating.