On July 29, GCL TECH rose 5.08% in regular trading, trading at HK$0.62/share, with turnover of approximately HK$65.07 million. The rally was driven by the official release of new mandatory national standards for polysilicon energy consumption, coupled with multiple broker endorsements.
The newly published national standard tightens the Level 3 comprehensive energy consumption limits for rod-shaped silicon and granular silicon to 6.3 and 4.6 kgce/kg respectively, stricter than the earlier consultation draft. Notably, the standard closes a loophole that previously allowed producers to externally purchase silicon cores to artificially reduce reported energy consumption figures. BOCOM International reiterated a Buy rating on GCL TECH, stating the new standard could drive mainland polysilicon capacity down from 3.5 million tons to below 2 million tons, with GCL TECH positioned as the primary beneficiary given its status as the granular silicon leader with the industry's lowest energy consumption.
Additionally, Western Securities recently initiated coverage with an Overweight rating, projecting the company's net losses to narrow to RMB -671 million this year before turning profitable the following year. The company has also conducted frequent share buybacks throughout July, repurchasing over 300 million shares in the month.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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