Zhongyou Securities: Supporting policies support the demand for photovoltaic installations in 2026, suggest focusing on integrated components.

Zhongyou Securities released a research report stating that there is a gap between supply and demand in the photovoltaic industry. The "anti-inner-loop" action on the supply side continues to advance. On the other hand, China officially submitted its nationally determined contributions for 2035 on November 3, 2025. China is an active player in energy transition. The securities firm expects that related supporting measures will be intensively released domestically and the integration of large base capacity is expected to accelerate, so they believe that the improvement in demand may come earlier. They recommend focusing on integrated components, LONGi Green Energy Technology (601012.SH), Jinko Solar (688223.SH), among others. According to the report, from January to September 2025, the cumulative new installed capacity in the photovoltaic industry reached 240.3GW, an increase of 49.3% year-on-year, with a utilization rate of 95%. In April and May 2025, there was a rush to install 9.7GW, a decrease of 53.8% year-on-year, due to the rush caused by policy changes. With the gradual adaptation and optimization of the electricity price mechanism, the securities firm expects the annual photovoltaic installed capacity to reach 300GW in 2025. The proportion of solar power generation continues to increase, with a chance of exceeding 20% for the whole year. The "anti-inner-loop" policy on the supply side continues to drive, combined with China's submission of NDC 3.0. The securities firm expects related supporting measures to be intensively released domestically, and the integration of large base capacity is expected to accelerate, based on this, they believe that the overall demand will be supported in 2026, and the overall expectation gap will increase.