CICC: JA Solar (03800.HK) benefits the most from the new national standard on energy consumption of polycrystalline silicon, reiterating a "buy" rating.

According to the report, the new national standard for energy consumption of polysilicon has been officially released. The energy consumption limit has been further tightened compared to the draft for public comment in September last year, which will significantly increase the difficulty for enterprises to meet the energy consumption standards. The new national standard will be officially implemented on January 1, 2027. The bank expects that this will help reduce China's mainland polysilicon production capacity from 3.5 million tons to below 2 million tons, significantly reducing overcapacity. The bank believes that the unexpectedly tightened new national standard for energy consumption of polysilicon reflects the government's firm determination to prevent the overcapacity of the photovoltaic industry, and a reversal in the polysilicon sector can be expected. The bank recommends buying shares of the leading polysilicon company with the lowest energy consumption, Daqo New Energy (03800.HK).