Â
>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<
Â
Â
HSBC Global Research lifted the 2022-25E global solar installation forecasts to 254-375GW per year, up 15% – 38% compared to the original forecasts.
Forecast of solar installation in China was raised by 23% – 50% to 98 – 150 GW per year. Prices of polysilicon and solar modules are expected to drop in 2023, which will boost solar investment, and mainland China’s solar power equipments are expected to see strong exports due to cost advantages, though potential tariffs and US subsidies to local companies will likely pose challenges in the medium term, the bank said.
Overall, HSBC preferred solar equipment makers over renewable utilities, given the lack of policies to stimulate solar tariffs in the near term and the lingering uncertainty over the Chinese government’s settlement of outstanding renewable energy subsidies, according to a note.
Xinyi Solar (00968.HK) was maintained at Hold, with its target price chopped from $13.6 to $8.6. Compared with that of pure solar glass companies, Xinyi Solar’s earnings were anticipated to be more resilient. However, the broker remained cautious towards the uncertainties over the firm’s short-term earnings, given the trend of costs and product ASPs.
In addition, HSBC lowered the forecast of solar glass’ gross profit margin in 2022 – 2024 to 25.8%, 24.5% and 26%, respectively, from previously 26.9%, 28.4% and 29.8%, according to the note.