Morgan Stanley: Views on the photovoltaic industry have turned increasingly selectively optimistic, upgrading the ratings of Xinyi Solar and Flat Glass to "Overweight."

J.P. Morgan's research report indicates that China's photovoltaic sector has averaged a decline of approximately 30% year-to-date, with some stocks' valuations nearing historical lows. The current outlook for the industry is becoming selectively optimistic, with expectations that photovoltaic demand will recover in the second half of the year driven by seasonal factors. Additionally, due to production suspension arrangements, the supply-demand outlook for photovoltaic glass is expected to improve. The firm has upgraded the ratings of Xinyi Solar and Fuyao Glass from "Neutral" to "Overweight," anticipating that if the industry consolidates, Xinyi Solar and Fuyao Glass are likely to gain more market share. At the same time, it maintains an "Overweight" rating on GCL-Poly Energy.