The analyst rating for XINYI SOLAR was downgraded to Neutral by BOCOMI due to several factors. The company's 2025 revenue and earnings are projected to drop by 5% and 16% year-over-year, respectively, with 2H25 earnings falling below expectations. This underperformance is largely attributed to a significant fixed asset impairment provision of RMB2.32 billion, which includes substantial amounts for photovoltaic glass and a polysilicon project. Additionally, BOCOMI noted that most of XINYI SOLAR's production capacity is low-cost with a shorter operating time, and there is limited willingness for further repairs. The company has only seen a slight decrease in production capacity since October, indicating that it may take more time to address the existing production capacity issues. Consequently, BOCOMI adjusted its target price downwards from HKD3.7 to HKD3.67, reflecting a more cautious outlook on the company's performance.
