Citigroup: Amendment of price law benefits the solar industry. We are optimistic about companies in the segmented market with cost advantages.

Citi believes that the revision of the pricing law will help to more effectively implement the pricing law, curb dumping behavior, and benefit the solar energy industry. Analysts like Air Ma stated in their report that according to the revised draft, not only should companies not sell products below their own costs, but the new provisions also require companies with cost advantages not to use this to force other companies to sell at prices below cost. Since the second half of 2024, the selling prices of most photovoltaic products have been below cost. Enterprises in the polycrystalline silicon plate sector such as Longi Green Energy Technology, Tongwei Co., Ltd., and Daqo New Energy are expected to benefit from the rebound in average prices and capacity integration. Downstream industries such as solar glass, silicon wafers, and solar cell manufacturers may also benefit, with potential for leading cost companies in various submarkets.