[ET Net News Agency, 19 July 2019] Goldman Sachs lifted its target price for Xinyi
Solar Holdings (00968) by 60% to HK$5.1 and upgraded its rating to "buy" from "sell".
The research house believes Xinyi Solar is best positioned to benefit from the
accelerating adoption of dual-glass solutions in solar modules given its sector-leading
cost advantage and rapid capacity expansion.
Goldman turned more positive on the stock given (1) potential China demand pick up in
2H, (2) potential acceleration of bi-facial dual glass solutions, and (3) Xinyi's moves to
actively expand capacity, which could further leverage its economies of scale to expand
gross margins.
It also raised its FY2019-21 revenue forecasts by 12%/25%/32% and its EBITDA by
6%/13%/19% to reflect Xinyi's capacity expansion and potential cost reduction from better
scale. (KL)