Guotai Haitong: Photovoltaics are at the bottom range, and the price increase trend has begun to emerge.

Guotai Haitong published a research report stating that the price increase trend in the photovoltaic industry chain has begun to manifest. According to the Silicon Industry Association, last week the price of polysilicon remained unchanged, while 2.0 glass increased by 0.5 yuan to 9.75 yuan/square meter, and 3.2 glass rose by 0.75 yuan to 17 yuan/square meter; according to Infolink, 182 silicon wafers increased by 0.03 yuan to 0.83 yuan/piece, 182 battery cells rose by 0.02 yuan to 0.29 yuan/W, 201R battery cells increased by 0.02 yuan to 0.28 yuan/W, and 210 battery cells rose by 0.02 yuan to 0.285 yuan/W. The industry price increase trend is beginning to emerge, and companies with cost and technological advantages are expected to reach a profitability inflection point ahead of others. Guotai Haitongs main views are as follows: Silicon material is in a price reconstruction phase Last week, the price of silicon material remained unchanged, and there were no transactions in the market. According to the Silicon Industry Association, the observation status in the domestic polysilicon market continued last week, as all parties were monitoring the effectiveness of industry regulations and the operation of the supply chain, waiting for a new consensus for transactions to gradually form. The organization believes that the current price is far below the cost range of high-quality production capacity, which is not conducive to achieving survival of the fittest in the industry. Irrational competition cannot be sustained in the long term, and subsequent regulatory enforcement will drive price improvements, indicating a clear upward trend from the bottom. Battery cell prices generally increased Last week, battery cell prices generally rose. The market atmosphere for maintaining prices was quite strong, with the central price for transactions rising. According to SMM, the overall production plan for August slightly contracted compared to July, and inventory is also decreasing, with rising silver prices being an important influencing factor. The organization believes that domestic demand is expected to marginally improve in the fourth quarter, and overseas demand also has strong support. Following improvements in module demand, prices are expected to further transmit. The photovoltaic sector is at a historical low and deserves attention The organization believes that the photovoltaic sector has undergone considerable adjustment and is overall at a historical low. Current prices have shown signs of increase, and both supply and demand sides are continuing to improve marginally. As policy and performance inflection points approach, the valuation of the photovoltaic industry is also expected to see improvements. The current position is at a historical bottom and is worth close attention. Risk warning Risks of industry policy fluctuations; risks of intensified competition; risks of new technology substitution; risks of product price fluctuations.