Haitian Water Group Co.,Ltd. (603759) experienced a strong limit-up surge on March 24th following a period of continuous adjustment. This sharp rise is linked to a positive announcement regarding a strategic cooperation agreement with Tongwei Solar.
Analysis suggests this partnership is expected to effectively address the capacity utilization issue of the Heraeus photovoltaic silver paste business acquired by Haitian Water Group. For the company, this development could lead to performance exceeding expectations and trigger a further revaluation of its shares.
**Positive News Drives Strong Stock Performance** After market close on March 23rd, Haitian Water Group announced the signing of a strategic cooperation framework agreement with Tongwei Solar Co., Ltd., dated March 23, 2026. Party A includes Tongwei Solar and its controlled subsidiaries, while Party B includes Haitian Water Group and its controlled subsidiaries involved in the paste business.
Public information indicates Tongwei Solar is a globally leading producer of crystalline silicon solar cells. It boasts an annual capacity exceeding 150GW and has been the top global battery shipment company for nine consecutive years.
The core of this partnership is to drive sales of Haitian Water Group's products. The announcement states that Tongwei Solar will prioritize using Haitian's pastes and related products under equal conditions. Both parties aim to deepen cooperation and increase the share of collaboration.
Notably, the cooperation extends beyond sales to include significant technical collaboration. The companies will explore product development plans and cooperate on new technologies, including pastes for HJT, TOPCon, and perovskite solar cells. Haitian Water Group commits to allocating personnel and equipment to support Tongwei Solar's R&D efforts for new products.
In the secondary market, buoyed by this news, Haitian Water Group's stock opened at the daily limit-up price on March 24th and maintained that level until the close. The low turnover rate of 1.22% indicated strong investor reluctance to sell.
**Valuation Reassessment Behind Performance Potential** "The most significant benefit of this cooperation for Haitian Water Group is undoubtedly the substantial performance flexibility it brings," stated a solar industry analyst. "The acquired Heraeus photovoltaic silver paste business had a designed annual capacity exceeding 3,000 tons but suffered operational losses in 2023 and the first half of 2024 due to severely low capacity utilization."
The analyst pointed out that based on Haitian Water Group's 2025 interim report, the acquisition was completed and achieved monthly profitability in August. This explains the sequential improvement in net profit starting in the second half of 2025. The partnership with Tongwei Solar is likely to substantially resolve the company's low capacity utilization issue.
"An increase in capacity utilization will directly boost Haitian Water Group's revenue and net profit. Against the backdrop of stable development in its traditional business, expansion into the new energy sector provides ample performance flexibility," the analyst added.
Haitian Water Group stated that the agreement is a key move in its new energy sector expansion, aligning with the national "dual carbon" strategy and its transition towards green, low-carbon development. Relevant projects are progressing in compliance with regulations, and the agreement's implementation is expected to positively impact future operating performance, benefiting the company's long-term development and shareholder interests.
While Haitian Water Group's full-year 2025 performance is projected to decline, a clear fundamental improvement is evident, with expectations for continued growth in the first quarter of 2026. Analysis suggests the consolidation of the Heraeus business will contribute to revenue and profit growth, creating significant potential for Q1 2026 performance. Successful cooperation and product shipments with Tongwei Solar could lead to results exceeding expectations.
According to the company's earnings forecast, net profit for 2025 is estimated to be between 189 million yuan and 226 million yuan, representing a year-on-year decrease of 31.57% to 42.77%. However, a quarterly breakdown shows a significant sequential increase in the third quarter, indicating an improving trend. Calculations based on the annual forecast suggest a fourth-quarter net profit between 85.05 million yuan and 122.05 million yuan, a sequential increase of approximately 99% to 186%, providing continued evidence of the company's performance recovery.
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