BOC International: Price hikes in the industrial chain are becoming a trend, with the end terminals beginning to accept higher-priced components.

BOC International released a research report stating that the photovoltaic industry's "anti-overlapping" movement is divided into two specific paths: "promoting the orderly exit of outdated capacity" and "smoothly continuing to add high-quality capacity." The industry chain is actively supporting pricing at the apparent level, and central state-owned enterprises have also responded positively. The report is optimistic about the premium of high-efficiency battery modules and maintains a rating of the industry stronger than the overall market. Key points from BOC International: Central state-owned enterprises respond positively to the increase in prices of photovoltaic modules On August 19, 2025, the Ministry of Industry and Information Technology, the Central Social Work Department, the National Development and Reform Commission, the State-owned Assets Supervision and Administration Commission of the State Council, the State Administration for Market Regulation, and the National Energy Administration jointly held a symposium on the photovoltaic industry, attended by relevant photovoltaic manufacturing enterprises and power generation enterprises. The meeting proposed four measures to promote the healthy and sustainable development of the industry in China. These measures include strengthening industry regulation, curbing low-price disorderly competition, regulating product quality, and supporting industry self-regulation. Following the appeal from the ministries, central state-owned enterprises' bidding and winning prices have shown an upward trend. On December 16, 2025, China Three Gorges Corporation announced the results of the first batch of centralized procurement of photovoltaic module frameworks for 2026, with the winning price exceeding 0.75 yuan/W. "Anti-overlapping" is the main theme of the development of the photovoltaic industry, and it is optimistic about the premium of high-efficiency battery modules In December 2025, the Central Economic Work Conference was held in Beijing, where "deepening the reform of 'overlapping' competition" was listed as one of the key tasks of reform for 2026. Meanwhile, during the 2025 China Photovoltaic Industry Annual Conference, an article titled "Deepening the Reform of 'Overlapping' Competition" was published by Qiushi Net, proposing that industries like photovoltaics actively strengthen self-discipline, promote the stabilization of product prices, and effectively combat "overlapping" competition. The article also mentioned that China will continue to deepen structural reforms on the supply side, vigorously promote the governance of key industry capacity, and deliver high-quality supply to meet the evolving demand. The main policy directions for "anti-overlapping" include two main points: "promoting the orderly exit of outdated capacity" and "smoothly continuing to add high-quality capacity." Concrete measures have been taken for the "exit of outdated capacity," such as the establishment of the polysilicon storage platform Guanghe Qiancheng in December 2025 to eliminate some outdated capacity within the industry. As for "smoothly continuing to add high-quality capacity," the report believes that the industry needs to improve efficiency through battery modules and central state-owned enterprises need to increase the purchase of high-efficiency modules and offer premiums, allowing leading companies in the industry to have room for premium pricing for 650+W modules. Positive changes have already occurred in the industry chain pricing, optimistic about the increase in module prices The increase in terminal module prices has become a trend. According to Infolink Consulting, after the CPIA conference, China's leading module companies have responded by raising prices by 0.02-0.04 yuan/W, and high-priced module transactions have appeared in distributed channels. Furthermore, there is a strong willingness to support prices in intermediate links such as silicon wafers and battery cells, further promoting the increase in terminal module prices. The report believes that there is a high probability that the increase in terminal module prices will be implemented, leading to a more positive expectation for the improvement of profits from battery cells and modules in 2026. Investment recommendations: Recommended stocks include Hainan Drinda New Energy Technology, Trina Solar Co., Ltd., JA Solar Technology, Jinko Solar, and LONGi Green Energy Technology. It is suggested to keep an eye on Tongwei Co., Ltd., GCL TECH, Xinjiang Daqo New Energy, Shuangliang Eco-Energy Systems, and Hongyuan Green Energy. Key risks: Adverse fluctuations in raw material prices; risks of international trade friction; technological progress falling short of expectations; risks of new energy policies; and risks related to absorption.