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| HSCEI1 | 8,858.63 | -17.75 | 113.18B |
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2026-05-14 10:21:09 Citi issued a report expecting GCL TECH (03800.HK) to remain loss-making in 2026, compared with its previous forecast of a net profit. The revision is mainly due to weak polysilicon demand since 1Q26, leading to declines in both selling prices and sales volume, coupled with increased impairment losses. Reflecting the downward revision in earnings forecasts, the broker lowered its TP from HKD1.72 to HKD1.3. Despite cutting its earnings forecasts, Citi maintained its Buy rating on GCL TECH, as polysilicon prices appear to have bottomed out and have fallen below the average cash cost for most enterprises. If regulators tighten energy consumption requirements and price supervision in 2H26, prices are expected to rebound. The company is a leading player with the lowest polysilicon production costs, and its inventory pressure is the smallest among peers. Its estimated 2026 price-to-book ratio is only 0.6x, which Citi considers attractive at the trough of the cycle.(ha/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |