CLSA tweaked its target price for Xinyi Solar Holdings (00968) to HK$24.4 from HK$24.5 and retained its "buy" rating.
The research house said Xinyi Solar's 2020 core profit (up 89.3%) was a 3.9% beat on solar glass ASP and thus GPM. It believes that GPM will likely stay at a relatively high level in 2021 despite price normalisation in the medium term on more supply.
CLSA said long-term decent demand growth and aggressive capacity expansion (245% from now) should support growth with increased market share. The solar farm, despite lower priority, should also show further expansion.