Investors seeking opportunities should monitor analyst research reports for authoritative, professional, timely, and comprehensive insights to uncover potential thematic trends! On February 4th, the A-share market continued its volatile trend, with concepts like coal and space solar experiencing a collective surge. However, similar to the previous liquor stock rally, the coal sector's significant rise is considered a technical rebound from oversold conditions, and the sustainability of this recovery remains uncertain, especially as current performance previews indicate widespread declines in coal company earnings. In contrast, the space solar concept may demonstrate greater staying power, supported not only by an earnings reversal but also by a continuous stream of positive developments within the sector.
Against this backdrop, stocks related to space solar led the gains in the A-share market. For instance, Junda Co., Ltd. has already doubled its value this year, and it is noteworthy that this company was a core case study identified by veteran market analyst Bian Huizong.
The space solar concept experienced another surge. By the midday close, indices such as Central State-Owned Coal Enterprises and Coal Mining Select occupied the top two spots on the list of hottest gaining concepts, with constituents like China Coal Energy, Yankuang Energy, and JinKong Coal Industry hitting the 10% daily limit-up. Meanwhile, the latest fundamental data reveals that among the 27 companies in the Shenwan coal industry that have released their 2025 performance previews, 19 anticipate a decline in earnings. This suggests the coal sector's rebound lacks solid fundamental support, and specific investment strategies should be further adjusted based on tracking the Q1 2026 earnings reports.
From a fundamental perspective, photovoltaic-related concepts showed relatively stronger performance. Nearly half of the companies in the Shenwan photovoltaic equipment industry are projected to achieve earnings growth in 2025, a significant increase compared to previous periods. Photovoltaic-related concepts dominated today's list of top-gaining themes. Among individual stocks, Zhonglai Co., Ltd. and Zerun New Energy hit the 20% daily limit-up, while Yamaton and Topray New Energy reached the 10% limit-up; companies like Jinko Solar and Jingsheng Mechanical & Electrical also posted substantial gains.
On the news front, on February 2nd local time, SpaceX, led by Elon Musk, issued a statement announcing the acquisition of xAI, another artificial intelligence company under Musk's umbrella. xAI also released a statement confirming it had "joined SpaceX." Previously, Musk publicly stated that SpaceX and Tesla Motors would collaborate to advance solar capacity expansion, targeting an annual solar manufacturing capability of 100GW within the next three years.
Additionally, reports suggest that a team from Musk's companies recently conducted discreet visits to several Chinese photovoltaic enterprises, inspecting projects involving equipment, silicon wafers, and cell modules, with a particular focus on companies specializing in heterojunction (HJT) and perovskite technological pathways. Subsequently, a representative from Jinko Solar confirmed that the company had indeed been in contact with a delegation related to Musk's team, which learned about the company's technological reserves and production equipment. Jinko Solar's intraday surge of over 10% today is likely connected to this news.
Space-based solar cells primarily focus on three key directions. Since 2020, the global commercial space industry has experienced rapid growth. Space data centers offer significant advantages over terrestrial ones, and with the explosive growth in AI computing demand, space data centers are expected to drive commercial space requirements. Musk recently proposed launching satellites for AI data centers with a capacity of up to 100GW annually via Starship. Concurrently, photovoltaics currently represent the most cost-effective power solution for space activities. Space-based solar power holds clear advantages over ground-based systems, including significantly enhanced light exposure, transition from an intermittent to a stable energy source, and no consumption of land resources. The annual electricity generation of the same photovoltaic cell in a dawn-dusk orbit can be 5 to 12 times that of a ground-based installation, and it largely eliminates the need for expensive accompanying energy storage systems.
Currently, space solar cells are mainly categorized into three types: gallium arsenide (GaAs), crystalline silicon, and perovskite. GaAs offers the best efficiency and performance but comes with extremely high costs; perovskite boasts the highest specific power and best flexibility, with theoretically very low costs, but its stability requires further validation, and single-junction perovskite efficiency is currently relatively low. Crystalline silicon has poorer performance across various metrics but currently offers the lowest cost. Low Earth Orbit (LEO) satellites represent the mainstream of commercial space due to lower launch costs, lower value, shorter design lifespans, and weaker environmental radiation, making them most suitable for low-cost batteries. Currently, crystalline silicon is gradually replacing GaAs. Industry insiders anticipate that ultra-thin HJT crystalline silicon batteries will become the preferred choice in the short term. Following sufficient validation, perovskite and perovskite/crystalline silicon tandem cells, which offer higher specific power, are expected to soon replace crystalline silicon as the top choice.
Based on analysis, several companies within the industrial chain are currently making strategic moves focused on these areas.
For example, Canadian Solar has conducted long-term technological development and reserves in areas related to space solar, including crystalline silicon cells (HJT technology), and perovskite/HJT tandem cells and modules. In 2020, the company established a leading HJT pilot line within the industry and was a pioneer in developing and introducing half-cell technology, possessing R&D and pilot capabilities for HJT cells as thin as 80 microns or less. After years of R&D, Canadian Solar's HJT technology has been upgraded to version 4.0, breaking through eight key industry technologies such as high-crystallization double-sided microcrystalline silicon, ultra-fine grid lines, busbar-free design, and ultra-thin silicon wafers. Its R&D efficiency has exceeded 27.6%, mass production efficiency has surpassed 27.30%, and yield has reached 99.2%, placing it at an advanced industry level. Since 2023, Canadian Solar has partnered with the Ningbo Institute of Materials Technology and Engineering, Chinese Academy of Sciences, to jointly develop high-efficiency two-terminal perovskite/HJT tandem cells, achieving a breakthrough conversion efficiency of 33.1%.
Furthermore, several other companies, including Botai Alloy, GCL System Integration Technology, and Guangxin Materials, are also making strategic investments in related fields.
Five stocks are projected to see earnings double. From a fundamental viewpoint, major related indices such as those for perovskite cells, HJT cells, and TOPCon cells include multiple constituent stocks that have released their 2025 performance forecasts. Among these, five stocks are anticipated to potentially double their earnings growth. Dingjide is expected to show the fastest growth, with forecasted net profit increasing by 171.15% to 206.73% year-over-year.
Reportedly, the company's main business involves polypropylene catalysts, polyethylene catalysts, electron donors, antioxidants, compound antioxidants, and other polyolefin additives. It is the sole national high-tech enterprise in China that integrates R&D, production, and sales of polyolefin catalysts and downstream additives. Crucially, the company's polyolefin elastomer (POE) can be used as an encapsulant film for photovoltaic cells, helping to mitigate potential-induced degradation (PID) and extend the lifespan of solar modules.
Additionally, other companies like JPT Electronics are among those with leading projected earnings growth.
(Mentioned stocks are for illustrative analysis only and do not constitute investment recommendations.)
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