HK Stock Market Move | XINYI SOLAR (00968) rebounds by more than 4% with asset impairment dragging down performance in the second half of the year. Institutions say the inflection point for photovoltaic glass prices can be expected.

XINYI SOLAR (00968) rebounded more than 4%, as of the time of writing, up 3.34% to HK$3.09, with a turnover of HK$73.6032 million. On the news front, XINYI SOLAR recently issued a profit warning, expecting a 70-80% year-on-year decrease in net profit to RMB 769-1.15 billion in 2024. Goldman Sachs pointed out that this was mainly due to more production lines entering intensive maintenance last year, leading to increased impairment of fixed assets, dragging down the financial reports in the second half of last year, with an expected net loss of between RMB 600 million and RMB 1 billion in the second half of last year. Zhongtai International pointed out that since 2024, a total of 27,500 tonnes per day of silicon photovoltaic glass production lines have undergone maintenance, accounting for over 20% of the existing production capacity. Taking into account some production capacity being maintained, the actual reduction in production capacity in the industry is even greater, and industry inventory has continued to decline after peaking in early November. January is the traditional off-season for component demand, with a decrease in component production, and it is expected that there will be maintenance on glass production lines in the future. Considering that the reduction in glass supply is quite sufficient and it takes time for maintenance capacity to be brought back online, it is expected that the supply of silicon photovoltaic glass will remain at a low level in the short term. After the Spring Festival, with demand recovery and downstream stocking, it is expected that silicon photovoltaic glass will continue to destock, with a potentially turning point in prices.