HK Stock Market Move | Solar stocks extend losses; institutions say industry demand is weak and the profit inflection point remains unclear, with overall recovery still expected to be gradual.

Solar stocks extend losses. As of press time, Lens Technology (06613) fell 8.08% to HK$16.04; Hainan Drinda New Energy Technology (02865) dropped 3.38% to HK$10.3; FLAT GLASS (06865) declined 2.54% to HK$4.995; XINTE ENERGY (01799) fell 2.17% to HK$3.385. Soochow believes that the photovoltaic industry is currently at the bottom of its cycle, with weak demand and an unclear profit inflection point, but the logic of supply-side reform is strengthening, and production cuts by leading players will help clear out outdated capacity. Technological iteration and emerging application scenarios have become important incremental drivers; BC module delivery prices remain firm, and new directions such as space photovoltaics may provide additional growth momentum. Shenwan Hongyuan Group pointed out that in the first half of 2026, the photovoltaic sector remains at a multiple bottom in terms of "performance, valuation and attention." From January to August, domestic newly installed capacity was 97.19GW, a sharp year-on-year decline. Industry consolidation and the implementation of new technology standards will bring improvements, and the profit elasticity of leading module manufacturers is emerging. With the start of the overseas peak season and the transmission of price increases along the domestic industrial chain, the performance of photovoltaic companies in the third quarter is expected to improve quarter-on-quarter, opening a window for a sector rebound, but the overall recovery is still expected to be gradual.