Hong Kong Stock Concept Tracking | New energy projects' online electricity volume is generally fully entered into the electricity market. Institutions are optimistic about the upward trend of photovoltaic bottoming (including concept stocks).

On February 9th, the National Development and Reform Commission and the National Energy Administration issued a notice on deepening the market-oriented reform of new energy grid electricity prices to promote the high-quality development of new energy. The notice proposes promoting the participation of new energy grid electricity in market transactions. New energy projects (wind power, CECEP Solar Energy generation) are generally required to enter the electricity market, and grid electricity prices are formed through market transactions. New energy projects can participate in trading by reporting quantities and prices, or accept prices formed by the market. For new energy electricity traded across provinces or regions, grid electricity prices and transaction mechanisms are implemented according to relevant policies for inter-provincial and inter-regional power transmission. It is mentioned that a sustainable development price settlement mechanism for Xingjiang Lixin Energy has been established. After participating in electricity market transactions, a price difference settlement mechanism is established outside the market, with the price level, amount of electricity, and execution period of the new energy included in the mechanism clearly defined by the provincial price regulatory authorities in coordination with the provincial energy regulatory authorities and electricity operation authorities. According to the National Energy Administration's statistics on the national power industry in 2024, there was an increase of 277.17GW in newly installed photovoltaic capacity from January to December 2024, a 28% year-on-year growth. Sinolink states that domestic and foreign demand for photovoltaics is active, with positive price signals, and there is a possibility for a strong start after the Spring Festival holiday; the first wave of policy impacts from the Trump administration has passed, sector performance forecasts have been disclosed, and sentiment and performance are solidifying. For the electricity volume included in the mechanism, if the market transaction average price is lower or higher than the mechanism electricity price, the grid enterprises will carry out price difference settlement according to regulations, and the settlement costs will be included in the local system operation costs. According to Guotai Junan's research report, the photovoltaic sector is currently at an expected bottom position, with the industry fundamentals stabilizing at the bottom, positive changes on the supply side are happening actively, and the outlook for the industry's prosperity and supply-demand improvement expectations is continuing to improve. The sector opportunities are likely to be evident, so the industry's rating remains at a buy level. The report suggests focusing on: 1) Continuous decrease in inventory, profitability could improve first in the battery, silicon wafer, and photovoltaic glass segments, as well as leading companies with advantageous positioning in each segment. 2) Continuous breakthroughs in new technologies, BC battery component efficiency is leading, and technological innovations such as copper paste and grid stacking are gradually being applied. Power plant series: HUANENG POWER (00902), China Longyuan Power Group Corporation (00916) Hong Kong-listed companies related to the photovoltaic industry: GCL TECH (03800), XINYI SOLAR (00968), FLAT GLASS (06865), XINTE ENERGY (01799) and others.