Hong Kong stock market concept tracking | Photovoltaic industry strives to cross industry cycles Institutional optimism on improved supply and demand expectations continue to rise (with concept stocks)

At the Photovoltaic Industry Development Review for 2024 and Outlook for 2025 held today, Xing Yiteng, Director of the New Energy Department of the New Energy Division of the National Energy Administration, stated that after the newly added photovoltaic installed capacity exceeded 200 million kilowatts for the first time in 2023, it exceeded expectations again in 2024, reaching 278 million kilowatts, a year-on-year increase of 28%, accounting for around 65% of the country's newly added installed capacity; among them, the cumulative installed capacity of distributed photovoltaics reached 375 million kilowatts, accounting for 42%, with the structure continuously optimized; the photovoltaic power generation in 2024 exceeded 700 billion kilowatt-hours, accounting for 8.6% of the total electricity consumption, an increase of 1.2 percentage points from 2023, further enhancing the capacity of green electricity supply; the production capacity, output, and technological level of silicon materials, silicon wafers, batteries, and components in all aspects continue to maintain a leading position globally, with continuous technological innovation and iteration. He suggested that the photovoltaic industry should maintain confidence, perseverance, enhance internal strength, and strive to overcome the industry cycle. The National Energy Administration will also research policy measures to promote the integrated development of new energy, vigorously promote the construction of large-scale wind and photovoltaic bases, organize industry associations to research and compile the "Question and Answer on the Development and Construction Management Measures of Distributed Photovoltaic Power Generation" and related contract templates, further optimize the distributed power access grid carrying capacity evaluation methods, research and formulate "Measures for the Upgrade, Transformation, and Retirement Management of Photovoltaic Power Stations", fully utilize the national "Two New" policy, encourage and guide existing photovoltaic power generation projects to increase their renovation and transformation efforts; and will also guide and promote local areas to quickly research and issue detailed rules for the implementation of power market suitable for local new energy characteristics, promote the industry to clarify development expectations; promote policies and measures to promote the development of distributed photovoltaics for nearby use, and expand the application scenarios of distributed photovoltaic power generation. Guotai Junan released a research report stating that it is expected that the current photovoltaic industry chain may enter a price increase cycle, the sector is at the expected bottom position, the industry fundamentals have stabilized at the bottom, and positive catalytic factors from the supply and demand sides are expected to gradually emerge. The subsequent improvement in industry prosperity and the expectation of supply and demand improvement will continue to increase, and opportunities in the sector are expected to emerge, maintaining a recommended industry increase rating. Key points to focus on: 1) Continuous decrease in inventory, with the battery, silicon wafer, and photovoltaic glass sectors expected to have improved profitability, as well as leading enterprises with better overall layout in each sector. 2) Continuous breakthrough in new technologies, leading in BC battery component efficiency, gradual application of technological innovations such as copper paste and grid stacking. Hong Kong stocks related to the photovoltaic industry: GCL TECH (03800), XINYI SOLAR (00968), FLAT GLASS (06865), XINTE ENERGY (01799), etc.