BOCOM INTL: GCL TECH(03800) to benefit most from new national standard on energy consumption of polycrystalline silicon, reiterates "buy" rating.

BOCOM INTL has released a report stating that the new national standard for energy consumption of polycrystalline silicon has been officially announced. The energy consumption limit has been further tightened compared to the draft opinion proposed in September last year, which will significantly increase the difficulty for enterprises to meet the energy consumption standards. The new national standard will be officially implemented on January 1, 2027. The bank expects that it will help reduce the polycrystalline silicon production capacity in mainland China from 3.5 million tons to below 2 million tons, thereby significantly reducing the overcapacity. The bank believes that the unexpected tightening of the energy consumption standard for polycrystalline silicon reflects the government's firm determination to prevent the excessive competition within the photovoltaic industry, and a turnaround in the polycrystalline silicon sector can be expected. The industry leader in granular silicon with the lowest energy consumption and the most beneficial from the new national standard is GCL TECH (03800), and the bank has reiterated its "buy" rating.