Guotai Junan: Prices entering an upward trend, optimistic about the upward catalyst for photovoltaics.

Guotai Junan released a research report stating that the current photovoltaic industry chain is likely to enter a phase of price increases, with the sector already at an anticipated bottom position. The industry's fundamental outlook is stabilizing at the bottom, and positive catalysts from the supply and demand sides are expected to gradually emerge. The continued improvement in industry sentiment and expectations for supply-demand balance are expected to boost sector opportunities, maintaining a positive industry rating. Key focus areas include: 1) Sectors such as batteries, silicon wafers, and photovoltaic glass, where inventory is decreasing and profits are expected to improve first, as well as leading companies in various sectors. 2) Continual breakthroughs in new technologies, with BC battery module efficiency advantages leading, and technologies such as copper paste and screen printing being gradually applied. Guotai Junan's main points are as follows: Industry self-discipline combined with economic recovery, leading to price recovery in the industry chain With the continuous promotion of industry self-discipline, prices in the photovoltaic industry chain are starting to show a comprehensive upward trend. According to reports from financial news media First Financial Daily, several domestic first-tier photovoltaic module companies have collectively raised module prices, with price increases ranging from 3-5 cents/w, and 2-3 cents/w for channel customers. The first quarter is currently in the off-season for the photovoltaic industry, but with the continuous promotion of industry self-discipline, current industry inventories are at a healthy level or even at a bottom stage. Prices began to stabilize before the Spring Festival, and with the continuous recovery of demand after the Spring Festival, the domestic market price adjustment mechanism is gradually returning. The European market is basically completed in terms of inventory reduction, and the entire industry chain is expected to enter a phase of price increases. Expected bottom combined with marginal catalysts for upward movement, focus on optimizing supply-demand structure and progress in new technologies The photovoltaic sector is currently at an anticipated bottom position, with the industry's fundamental outlook stabilizing at the bottom. Positive catalysts from the supply and demand sides are expected to gradually emerge. With future improvements in industry sentiment and gradual recovery in prices and profits, as well as continuous expectations for supply-demand balance improvements, sector opportunities are expected to emerge. Investors are advised to focus on optimizing supply-demand structures and breakthroughs in new technologies: 1) Sectors such as batteries, silicon wafers, and glass where inventory is decreasing and profits are expected to improve first, as well as leading companies in various sectors. 2) Continual breakthroughs in new technologies, with BC battery module efficiency advantages leading, and technologies such as copper paste and screen printing being gradually applied. Risk warning: Demand falling short of expectations; deteriorating structure leading to continued price reductions; trade barriers.