HK Stock Market Move | XINYI SOLAR (00968) falls by over 5% again, the photovoltaic glass industry returns to a state of losses, and the company's capacity reduction is slower than expected.

XINYI SOLAR (00968) fell more than 5% again, with a 5.42% drop as of the time of writing, at 3.14 Hong Kong dollars, with a trading volume of 2.92 billion Hong Kong dollars. On the news side, XINYI SOLAR recently released its 2025 performance. BOCOM INTL pointed out that the company's profit in 2025 was 844 million yuan, a 16% decrease compared to the previous year, with only 99 million yuan in the second half of the year, mainly due to a provision for impairment of fixed assets of 2.32 billion yuan (7.2 billion yuan for photovoltaic glass and 16.0 billion yuan for the 52% stake in the polycrystalline silicon project). The bank stated that starting in November, photovoltaic glass prices have once again started to decline, with the entire industry returning to a state of losses. However, most of the current production capacity is low-cost capacity with short operating times, and there is not much willingness for further production cuts. Additionally, newly completed production capacities are still being put into operation gradually, and it will take time for production capacity to be cleared. The bank has lowered the company's profit for 2026/27 by 14%/20% due to the slower-than-expected production capacity clearance, and has adjusted the valuation benchmark from 1.0 times the 2026 P/B ratio to 0.95 times.