BOCI International: Domestic anti-"involution" combined with Musk's space photovoltaic expansion resonance, photovoltaic equipment and materials are expected to benefit.

Bank of China International issued a research report stating that Musk once again stated that he will build a 100GW photovoltaic capacity. His capacity plan may extend upstream to silicon materials and silicon wafers, benefiting core equipment such as silicon materials, silicon wafers, batteries, and components. In the long term, material companies have the potential to expand their market space. The Ministry of Industry and Information Technology of China has clarified the main line of "anti-insularity" in the photovoltaic industry. It is expected that the industry will probably spontaneously limit production, optimizing the battery and component structure. China is accelerating the industrialization of space photovoltaics, and in the short term, various technological routes will develop concurrently, always focusing on equipment, materials, and batteries. In specific subdivisions, after the overseas manufacturers' technological directions are determined, the relevant equipment and materials are expected to stand out. The main points of Bank of China International are as follows: The Ministry of Industry and Information Technology once again clarified the main line of "anti-insularity" in photovoltaics, focusing on the price of the industrial chain. According to the report from the Ministry of Industry and Information Technology, on January 28, 2026, the Minister of the Ministry of Industry and Information Technology held a symposium with entrepreneurs in the photovoltaic industry, with the leaders of the National Development and Reform Commission, the State Administration of Market Regulation, key companies in the photovoltaic industry, and industry association representatives attending. The meeting clarified that "anti-insularity" is the main contradiction in the standardized governance of the photovoltaic industry. It proposed to comprehensively use measures such as capacity regulation, prevention of monopoly risks, protection of intellectual property rights, and promotion of technological progress in a market-oriented and legalized manner to jointly promote the return of the photovoltaic industry to a track of benign competition and rational development. Under the spirit of "preventing monopoly risks" and "capacity regulation", the industry is likely to spontaneously restrict production. Ultimately, to promote the rationalization of prices in the industrial chain and to prevent the phenomenon of excessive profits in a single link and losses in other links. Overall, this meeting serves as a year-end summary and outlook, and it is expected that "anti-insulation" will still be one of the main lines of photovoltaics in 2026. In the background of the rapid rise in silver prices, the battery structure is expected to be optimized; end component manufacturers will overcome the bottom of the cycle through the "anti-insulation price increase" + "silver reduction" plan. Musk intends to build integrated photovoltaic capacity, and equipment and materials are expected to benefit On January 28, 2026, Tesla held a conference call during which Musk once again stated that he will increase investments in ground-based photovoltaics and space-based photovoltaics, and proposed to build a 100GW photovoltaic industry chain capacity. The core marginal change is that Musk's expansion of photovoltaic capacity may not be limited to the battery and component fields. His capacity construction plan is expected to further extend upstream to silicon materials and silicon wafers, establishing a complete photovoltaic industry chain. The gradual clarification of overseas key manufacturers' expansion plans is expected to bring incremental orders to Chinese photovoltaic equipment manufacturers, and these orders are expected to extend upstream to silicon materials and silicon wafers, driving the photovoltaic equipment industry out of the bottom of the cycle. In the long term, the expansion of overseas photovoltaic capacity is expected to generate demand for auxiliary materials, benefiting leading auxiliary material companies. China is accelerating the pace of industrializing space photovoltaics, with multiple technological routes progressing concurrently China has a solid foundation in photovoltaic technology research and development, and photovoltaic equipment, battery, and component manufacturers are actively promoting the commercialization of space photovoltaics. China's space photovoltaic technology is still in the early stages of development, with various technological routes, including gallium arsenide, crystalline silicon, and perovskite, not yet converging in sub-scenes of space photovoltaics, making it difficult to predict the final outcome of the industry at this stage. In the short term, various technological routes will develop concurrently, always focusing on equipment, materials, and batteries. In specific subdivisions, after the overseas manufacturers' technological directions are determined, relevant equipment and materials are expected to stand out. Targets Recommended Hangzhou First Applied Material (603806.SH), Shenzhen S.C New Energy Technology Corporation (300724.SZ), Hainan Drinda New Energy Technology (002865.SZ), Suzhou Maxwell Technologies (300751.SZ), Jinko Solar (688223.SH), Trina Solar Co., Ltd. (688599.SH), LONGi Green Energy Technology (601012.SH), Shanghai Hiuv New Materials Co., Ltd (688680.SH). It is recommended to pay attention to Wuxi Autowell Technology Co., Ltd. (688516.SH), Shuangliang Eco-Energy Systems (600481.SH), Risen Energy (300118.SZ), Shanghai Geoharbour Construction Group Co., Ltd. (605598.SH), J.S. Corrugating Machinery (000821.SZ). Risk Factors Fluctuations in raw material prices; risks of international trade frictions; unexpected progress in new technologies; risks of new energy policies; absorption risks.