[ET Net News Agency, 11 January 2018] Credit Suisse lifted its target price for Xinyi
Solar Holdings (XYS)(00968) to HK$4.2 from HK$2.7, and upgraded its rating to "outperform"
from "neutral".
The research house said the upgrade reflects potential gross margin recovery in 1H 2018
driven by improved solar glass demand-supply dynamics (evidenced by recent spot price
hikes). XYS is among its top picks for China solar sector, after GCL Poly Energy (03800).
Credit Suisse calculated that latest spot solar glass prices has recovered by Rmb4.5/sqm
(or 15%) since August 2017, more than offsetting the cost hikes in winter gas
(+Rmb1.5/sqm) and soda ash (+Rmb1/sqm). This should support a margin recovery to 35% in
1H 2018 from 30% in FY 2017 for XYS.
Unlike its peers in solar farms, the research house believes XYS is relatively less
affected by renewables subsidy delay, given its robust balance sheet and low finance cost.
(KL).
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00968 XINYI SOLAR
Nominal 
5.130 -0.130 (-2.471%) Others
11/01/2018 15:00
[I-bank focus]Credit Suisse lifts Xinyi Solar to HK$4.2
| Remark: | Real time quote last updated: 23/04/2024 15:16 |
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