[ET Net News Agency, 5 August 2020] Daiwa Research lifted its target price for Xinyi
Solar Holdings (XYS)(00968) to HK$10.2 from HK$8.6 and upgraded its rating to "outperform"
from "hold".
The research house said the PV (photovoltaic) glass ASP fell by 17% in 2Q on sluggish
overseas demand but rose 8% in the past week for the first time this year on domestic
demand. Daiwa expects improving demand to continue to support the ASP in 2H, which,
coupled with cost reduction, should benefit XYS' GPM.
Also, Daiwa thinks the subsidy delay issue for its solar farms may be relieved with a
potential bond issuance by State Grid to pay subsidies. It raised its 2020-22 EPS
forecasts by 10-15% to reflect our new ASP and GPM assumptions. (KL)