: The demand for photovoltaics throughout the year varies, and attention should be paid to short-term price increases and opportunities for new technologies.

CICC released a research report stating that, driven by seasonal improvements and rush to install, the production forecast for modules in March is positive. Leading companies have confirmed price increases, and there is also a certain expectation of price increases for glass and film. At the same time, the market is nearing the implementation of supply-side reforms in industries such as photovoltaics and steel, leading to a shift from high to low sectors. It is recommended to continue to be bullish on the performance of the photovoltaic sector. CICC's main points are as follows: Focus on supply and demand and technology at the CPIA conference: Last week, the "Review of the Development of the Photovoltaic Industry in 2024 and Outlook for 2025" was held in Beijing, and the roadmap for the development of the Chinese photovoltaic industry (2024-2025) was released, with healthy industry development and technological changes being core discussion points. The PV industry association predicts negative growth in domestic installations by 2025 due to market entry and other factors, but some media believe that ground projects and the end of the 14th Five-Year Plan will drive domestic growth to maintain a 10% growth rate this year, showing some disagreement on overall demand, with a relatively optimistic view. In addition, changes in new technologies are still the source of alpha under the betas repair, with a core focus on changes in silicon particles, BC, paste, tungsten wire, and other links. Photovoltaic primary industry chain: Component prices have seen significant increases, with fast-rising demand coming from distributed installations. The installed capacity is expected to remain high in the coming months, and upstream destocking will further drive up prices along the entire industry chain. Market trends are expected to continue. Recommended focus areas: silicon particle technology with leading energy consumption; Shanghai Aiko Solar Energy (600732.SH) with enhanced certainty in BC. Photovoltaic auxiliary material industry chain: Price increases for auxiliary materials in March, bullish on profit recovery for glass and film. Glass inventory days dropped by 9% to 33.83 days last week. With the increase in component production in March, glass prices are expected to rise by 2 yuan. Film benefits from improved industry demand sentiment, with a 20% increase in production in March for leading manufacturers and a price increase in upstream EVA particles, driving profit recovery for film manufacturers. Demand for PV inverters remains stable, with incremental demand concentrated in storage inverters. It is expected that production of household storage inverters will increase in March, with the sector sentiment expected to rise. It is recommended to focus on leading film companies and XINYI SOLAR (00968) for glass. Risk Factors: Photovoltaic demand falls short of expectations, supply-side reforms fall short of expectations, and trade policy risks.