[SMM PV] Policies continue to strengthen, and capacity rationalization standards may be implemented at an accelerated pace

The PV industry is currently facing the cyclical bottom characteristics of difficult surplus supply exit and slowing demand growth. However, it is worth noting that the PV sector has significantly underperformed other new energy sub-sectors. While stocks in energy storage, cells, and many other areas have repeatedly hit record highs, PV stock prices remain near the bottom, similar to year-end 2023. This means that once the industry passes the inflection point of market exit, stock prices will have significant upside potential. From the perspective of the industry chain, all four major segments—polysilicon, wafers, solar cells, and modules—are at low price levels, and valuation suppression across the entire industry chain has been quite sufficient, providing ample room for expectation gaps for a subsequent reversal.