The Zhitong Finance App learned that Everbright Securities released a research report and gave GCL Poly (03800) a “buy” rating for the first time, with a target price of HK$4.1. Based on the tight balance of future silicon supply and the company's breakthroughs in granular silicon technology, it is optimistic that its 2021 performance is expected to reverse the past decline and enter a new growth cycle.
According to the report, the photovoltaic market experienced a new wave of expansion in production in the second half of 2020, and production capacity of downstream silicon wafers, batteries, and modules expanded dramatically. Due to the characteristics of heavy assets, long expansion cycles (about 1-2 years), and low production capacity elasticity, the expansion of silicon material production is seriously lagging behind. According to Solarzoom data, the total production capacity of silicon wafers, batteries, and modules in China is expected to reach a scale of 370-400 GW by the end of 2021, while the corresponding silicon production capacity is only 250 GW.
The bank said that at present, photovoltaic silicon materials have entered a price increase cycle, and the tight balance trend is expected to continue in the future. The implementation of the company's silicon dual base strategy has now become a benchmark project for high-quality, low-cost polysilicon manufacturing in the world. The company is expected to significantly benefit from the tight balance between supply and demand in the industry in 2021.
The report mentioned that FBR granular silicon technology compared to the current mainstream market improvement Siemens method has the advantages of low energy consumption and continuous production, and is expected to become the next generation of photovoltaic silicon technology. Beginning in 2010, the company spent many years independently developing granular silicon technology, and finally achieved stable mass production through the acquisition of overseas assets. The company's granulated silicon products are an effective complement to mainstream rod-shaped silicon in the market. Quality verification has been achieved for downstream customers. Currently, the Xuzhou 10,000 ton granular silicon project has been officially put into operation, and future development is worth looking forward to.