Daqo New Energy Invests RMB 6 Billion in Kunshan Manufacturing Base
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Newsfilter
- Strategic Expansion: Daqo New Energy has signed an investment agreement with the Kunshan Economic and Technological Development Zone to establish a new manufacturing base focused on next-generation energy solutions, with a total expected investment of approximately RMB 6 billion, indicating the company's strategic positioning in the rapidly growing AI data center market.
- Phased Investment: The project will be executed in two phases, with Phase 1 involving an investment of about RMB 2.1 billion, while Phase 2 will commence later upon meeting relevant industrial policy and investment requirements, reflecting the company's forward-looking planning for future market demands.
- Technical Expertise: Daqo New Energy plans to leverage its deep expertise in transformer and circuit breaker technologies to meet the increasing demand for sophisticated energy solutions in AI data centers, thereby enhancing its competitive edge in the market.
- Product Diversification: This investment represents a cornerstone of the company's strategy to diversify its product portfolio and cultivate new growth engines, aiming to capitalize on the massive market opportunities presented by the global energy transition and further solidify its leadership position in the photovoltaic industry.
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Analyst Views on DQ
Wall Street analysts forecast DQ stock price to rise
2 Analyst Rating
1 Buy
0 Hold
1 Sell
Hold
Current: 16.880
Low
18.13
Averages
28.07
High
38.00
Current: 16.880
Low
18.13
Averages
28.07
High
38.00
About DQ
Daqo New Energy Corp is a holding company primarily engaged in the manufacturing of polysilicon. The Company utilizes the chemical vapor deposition process, or the modified Siemens process, to produce polysilicon. The Company manufactures and sells polysilicon to photovoltaic product manufacturers, whereby the polysilicon is processed into ingots, wafers, cells and modules for solar power solutions. The Company offers ready-to-use polysilicon, packaged to meet crucible stacking, pulling and solidification needs. The Company also offers wafers through its downstream photovoltaic product manufacturing business. The Company mainly conducts its businesses within domestic market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Forecast Upgrades: Analysts have significantly raised their earnings forecasts for Marathon over the past two months, with expectations for 2026 earnings per share to exceed $23.53, reflecting the company's enhanced profitability in a high oil price environment.
- DAQO Energy's Worsening Dilemma: Despite strong global solar demand, DAQO Energy faces declining profitability due to oversupply in the polysilicon market, with projections indicating substantial net losses over the next two years, highlighting increasingly challenging fundamentals.
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Daqo New Energy Signs Investment Agreement with Kunshan
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- Phased Project Implementation: The project will be developed in two phases, with Phase 1 carrying an investment of about RMB 2.1 billion, aimed at rapidly ramping up production capacity to meet the growing demand for energy infrastructure in AI data centers.
- Product Development Focus: The new facility will concentrate on the research, development, manufacturing, and sale of products designed for AI data center power infrastructure, including energy storage systems, solid-state transformers, solid-state circuit breakers, and solid-state batteries, which is expected to enhance the company's market share in high-tech sectors.
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- Phased Project Implementation: The project will be executed in two phases, with Phase 1 involving an investment of around RMB 2.1 billion, while Phase 2 will commence later upon meeting relevant industrial policy and investment requirements, indicating the company's proactive approach to future market demands.
- Market Demand Surge: The rapid growth of Artificial Intelligence Data Centers (AIDCs) is creating substantial demand for sophisticated energy solutions, and the company plans to leverage its deep expertise in transformer and circuit breaker technologies to seize this significant growth opportunity.
- Strategic Expansion Goals: This investment is viewed as a cornerstone of the company's strategy to diversify its product portfolio and cultivate new growth engines, aiming to address the market opportunities presented by the global energy transition through vertically integrated energy solutions.
See More
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- Strategic Expansion: Daqo New Energy has signed an investment agreement with the Kunshan Economic and Technological Development Zone to establish a new manufacturing base focused on next-generation energy solutions, with a total expected investment of approximately RMB 6 billion, indicating the company's strategic positioning in the rapidly growing AI data center market.
- Phased Investment: The project will be executed in two phases, with Phase 1 involving an investment of about RMB 2.1 billion, while Phase 2 will commence later upon meeting relevant industrial policy and investment requirements, reflecting the company's forward-looking planning for future market demands.
- Technical Expertise: Daqo New Energy plans to leverage its deep expertise in transformer and circuit breaker technologies to meet the increasing demand for sophisticated energy solutions in AI data centers, thereby enhancing its competitive edge in the market.
- Product Diversification: This investment represents a cornerstone of the company's strategy to diversify its product portfolio and cultivate new growth engines, aiming to capitalize on the massive market opportunities presented by the global energy transition and further solidify its leadership position in the photovoltaic industry.
See More
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- Strong Financial Position: As of March 31, 2026, the company held a cash balance of $559.4 million and total liquid assets of $2 billion, indicating ample liquidity in a challenging environment with high inventory and low sales prices, while maintaining a zero-debt status.
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- Earnings Forecast Upgrades: Analysts have significantly raised their earnings forecasts for Marathon over the past two months, with expectations for 2026 earnings per share to exceed $23.53, reflecting the company's enhanced profitability in a high oil price environment.
- DAQO Energy's Worsening Dilemma: Despite strong global solar demand, DAQO Energy faces declining profitability due to oversupply in the polysilicon market, with projections indicating substantial net losses over the next two years, highlighting increasingly challenging fundamentals.
- Energy Market Outlook: Amid geopolitical tensions, crude oil prices remain above $90, and while high prices increase input costs for refiners, companies like Marathon and Valero benefit from strong refining margins, demonstrating the resilience of the sector.
See More
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- Investment Agreement Signed: Daqo New Energy's subsidiary, Daqo Energy Technology, has signed an investment agreement with Kunshan Economic and Technological Development Zone to establish a manufacturing base focused on next-generation energy solutions, with a total expected investment of approximately RMB 6 billion, indicating strong confidence in future market opportunities.
- Phased Project Implementation: The project will be developed in two phases, with Phase 1 carrying an investment of about RMB 2.1 billion, aimed at rapidly ramping up production capacity to meet the growing demand for energy infrastructure in AI data centers.
- Product Development Focus: The new facility will concentrate on the research, development, manufacturing, and sale of products designed for AI data center power infrastructure, including energy storage systems, solid-state transformers, solid-state circuit breakers, and solid-state batteries, which is expected to enhance the company's market share in high-tech sectors.
- Positive Stock Reaction: Following the signing of the agreement, Daqo New Energy's stock price jumped approximately 9% in pre-market trading on Thursday, reflecting market optimism regarding the investment project and recognition of the company's future growth potential.
See More
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- Investment Agreement Signed: Daqo New Energy's subsidiary, Daqo Energy Technology (Shanghai) Co., Ltd., has signed an investment agreement with the Kunshan Economic and Technological Development Zone to establish a new manufacturing base focused on next-generation energy solutions, with a total expected investment of approximately RMB 6 billion.
- Phased Project Implementation: The project will be executed in two phases, with Phase 1 involving an investment of around RMB 2.1 billion, while Phase 2 will commence later upon meeting relevant industrial policy and investment requirements, indicating the company's proactive approach to future market demands.
- Market Demand Surge: The rapid growth of Artificial Intelligence Data Centers (AIDCs) is creating substantial demand for sophisticated energy solutions, and the company plans to leverage its deep expertise in transformer and circuit breaker technologies to seize this significant growth opportunity.
- Strategic Expansion Goals: This investment is viewed as a cornerstone of the company's strategy to diversify its product portfolio and cultivate new growth engines, aiming to address the market opportunities presented by the global energy transition through vertically integrated energy solutions.
See More
Daqo New Energy Invests RMB 6 Billion in Kunshan Manufacturing Base
- Strategic Expansion: Daqo New Energy has signed an investment agreement with the Kunshan Economic and Technological Development Zone to establish a new manufacturing base focused on next-generation energy solutions, with a total expected investment of approximately RMB 6 billion, indicating the company's strategic positioning in the rapidly growing AI data center market.
- Phased Investment: The project will be executed in two phases, with Phase 1 involving an investment of about RMB 2.1 billion, while Phase 2 will commence later upon meeting relevant industrial policy and investment requirements, reflecting the company's forward-looking planning for future market demands.
- Technical Expertise: Daqo New Energy plans to leverage its deep expertise in transformer and circuit breaker technologies to meet the increasing demand for sophisticated energy solutions in AI data centers, thereby enhancing its competitive edge in the market.
- Product Diversification: This investment represents a cornerstone of the company's strategy to diversify its product portfolio and cultivate new growth engines, aiming to capitalize on the massive market opportunities presented by the global energy transition and further solidify its leadership position in the photovoltaic industry.
See More
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- PGJ ETF Potential Analysis: According to ETF Channel, the implied analyst target price for the Invesco Golden Dragon China ETF (PGJ) is $33.67 per unit, while its recent trading price is $26.68, indicating a 26.20% upside potential that reflects market optimism towards the ETF.
- PONY AI Price Expectations: PONY AI's recent share price is $9.87, with an analyst target price of $22.59, suggesting a potential upside of 128.84%, indicating strong market confidence in its future growth.
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See More
Daqo New Energy Q1 2026 Earnings Call Insights
- Cautious Market Sentiment: In Q1 2026, the solar PV industry's market sentiment remained cautious due to seasonal softness and elevated inventory levels, exacerbating the slowdown in China and leading to significant quarterly operating and net losses.
- Strong Financial Position: As of March 31, 2026, the company held a cash balance of $559.4 million and total liquid assets of $2 billion, indicating ample liquidity in a challenging environment with high inventory and low sales prices, while maintaining a zero-debt status.
- Decline in Sales and Revenue: Sales volume dropped to 4,482 metric tons in Q1, with an average selling price increasing 2.3% sequentially to $5.96 per kilogram, resulting in revenues of only $26.7 million, primarily due to reduced sales volume amid low market prices.
- Production Outlook: Management expects polysilicon production volume in Q2 2026 to be between 35,000 and 40,000 metric tons, with full-year production projected at 140,000 to 170,000 metric tons, emphasizing that policy guidance and market price fluctuations will directly impact production and sales strategies.
See More
