HK Stock Market Move | GCL TECH (03800) rose more than 4% in early trading. The energy consumption limit for silicon materials is expected to be lowered, and high-cost production capacity is expected to be quickly eliminated.

GCL TECH (03800) rose more than 4% in early trading, rising 4.39% to 1.19 Hong Kong dollars by the time of publication, with a turnover of 4.11 billion Hong Kong dollars. On the news front, on August 1st, the Ministry of Industry and Information Technology issued a notice on the list of special energy-saving inspection tasks for the polysilicon industry in 2025, involving a total of 41 companies. The comprehensive energy consumption limit for polysilicon unit products may be lowered, which is expected to accelerate capacity clearing. BOCOM INTL believes that if this requirement can be strictly enforced, high-cost capacity is expected to be quickly cleared. In addition, there is a significant tightening of polysilicon energy consumption standards and a requirement for increased consumption of green electricity, which is favorable for silicon granules. Furthermore, Shenwan Hongyuan Group stated that with the continuous promotion of anti-"involution" and industry self-discipline, the price of silicon materials continues to rise. It is estimated that the complete cost of top-notch silicon material companies in the industry is between 42,000-51,000 yuan per ton. Based on the current spot price of 45,000 yuan per ton, the profit per ton of top companies has reached 3,000 yuan. This round of anti-"involution" is being implemented from top to bottom, and with strong constraints, it is expected that price hikes will not increase the startup rate of silicon materials. Therefore, with expectations of industry self-discipline and anti-"involution," the price of silicon materials is expected to stabilize at the level of 45,000 yuan per ton.