Daiwa Research lifted its target price for Xinyi Solar Holdings (XYS) (00968) to HK$15.3 from HK$13.5 and upgraded its rating to "outperform" from "hold", given a likely sustainable generous GPM and potential positive profit alerts ahead.
The research house expects that the PV (photovoltaic) glass ASP is likely to stay at the record high level of >CNY40/m2 with XYS's glass gross margin approaching 60%. Daiwa expects a similar FY2020 profit alert to be announced in mid-December.
Due to the tight supply, XYS has hiked its November PV glass price by 20% to CNY42/m2 (3.2mm, including tax) for large contracts, and that for small contracts to CNY43-45/m2 depending on the scale. As 4Q is likely to be the peak season for domestic installations, the tight supply for PV glass is getting worse with no meaningful supply ramp-up on the horizon, Daiwa noted.
It lifted its 2020-22 EPS forecasts by 3-20% to reflect its new ASP assumptions.
WoW WoW星期三：健康網購產品低至$99 (只限今天)► 立即行動
