Hua Xin Securities: First Giving Tongwei Stock a "Buy" Rating, the Industry's Difficulties are Expected to be Reversed

Huaxin Securities research report pointed out that the "anti-inward spiral" policy in the photovoltaic industry has been strengthened, and the industry's difficulties may be reversed. The country is brewing strong measures to thoroughly address the issues of low-price and disorderly competition in the photovoltaic industry, with more policy benefits expected. Tongwei Group is a global leading integrated photovoltaic company, with a complete industry chain layout from upstream industrial silicon to end photovoltaic power stations. By the end of 2024, the company will have an industrial silicon production capacity of 300,000 tons, a polysilicon production capacity of over 900,000 tons, a battery production capacity of over 150GW, and a component production capacity of over 90GW. The company's high-purity polycrystalline silicon production has ranked first in the world for several years, with sales reaching 467,600 tons in 2024, accounting for about 30% of the national total and maintaining a stable market share. At the same time, the comprehensive electricity consumption and silicon consumption of the company have been reduced to below 46 degrees and 1.04kg respectively, maintaining a leading level in the industry and continuously decreasing with technological upgrades and operational efficiency improvements. Looking ahead, as a leading silicon material company, the company is expected to benefit directly from the industry chain price and profit recovery while maintaining its leading position in shipments under the background of reduced production in the photovoltaic industry. Tokio is expected to benefit from the industry chain price and profit recovery brought by the "anti-inward spiral" of photovoltaics. First coverage, "buy" investment rating.