<ET Net News Agency, 11 March 2011> Daiwa Research initiated coverage of GCL Poly
Energy (03800) with "buy" rating and a target price of HK$4.88.
The house said the rating reflects its view of high earnings growth potential. It
forecast 2011 net profit growth for GCL of 100% YoY through market-share gains, and high
entry barriers to becoming a low-cost polysilicon maker with decent quality products.
Daiwa expects year-on-year ROE improvements likely for GCL in 2011.
It believes the solar industry is undergoing a transition, with demand likely to shift
from being policy-driven to economics-driven, and that low-cost producers are the
transition enablers.
Daiwa said low-cost polysilicon makers should gain market share fast when the
polysilicon price drops, but it expects the real contest to start from 2013, when low-cost
polysilicon supply to meet demand worldwide.
WoW WoW星期三：健康網購產品低至$99 (只限今天)► 火速行動
