gcl tech estimated a loss of 2.97 billion RMB in the first three quarters.
GCL Tech (03800.HK) issued a profit warning, expecting a loss of approximately 2.971 billion yuan for the first nine months ending September, compared to a profit of 2.51 billion yuan in the same period last year, mainly due to a significant decrease in the average market selling price of polysilicon and silicon wafer products. By quarter, losses for the second quarter and third quarter were recorded at 1.512 billion yuan and 1.492 billion yuan, respectively. In the third quarter, the company's granular silicon production volume was 0.062 million tons, a 12.4% decrease from the previous quarter; the shipment volume increased by 32.2% to 0.0809 million tons. The tax-inclusive selling price decreased from 35.52 yuan per kilogram in the second quarter to 32.75 yuan per catty.
Illustration: Funds heading south increase positions in Alibaba, Xiaomi, GCL Tech, and Innovent Bio
Southbound capital bought a net of 6.282 billion Hong Kong dollars in Hong Kong stocks today. Among them: a net purchase of 1.711 billion for Alibaba, 0.662 billion for Xiaomi, 0.343 billion for GCL Tech, 0.319 billion for Innovent Bio, 0.12 billion for Tencent; a net sale of 0.582 billion for China Mobile, 0.191 billion for Sunac. According to statistics, Southbound capital has been net buying Xiaomi for 4 consecutive days, totaling 2.51677 billion Hong Kong dollars; net buying GCL Tech for 4 consecutive days, totaling 0.79892 billion Hong Kong dollars; net selling China Mobile for 4 consecutive days, totaling 1.20585 billion Hong Kong dollars. It is also worth noting that in the 26 trading days since being included in the Hong Kong Stock Connect
Express News | Southbound funds saw a significant net buy of 6.282 billion yuan today. As for the Stock Connect (Shanghai) segment, Alibaba-W and Xiaomi-W received net buys of 0.815 billion Hong Kong dollars and 0.327 billion Hong Kong dollars respectively; China Mobile
GCL Tech (3800.HK) profit and business update commentary for the first three quarters of 2024: The cash cost of granular silicon is steadily decreasing, while the carbon footprint level of polycrystalline silicon remains globally leading.
Event: The company released the profit and business update for the first three quarters of 2024. In the first three quarters of 2024, the company achieved a net income attributable to the parent company of -2.971 billion yuan, with silicon granule production/shipping volume of 0.1983/0.2073 million tons.
How far is the photovoltaic industry from the new cycle?
In the context where the photovoltaic sector has already experienced a deep round of pullback, the short-term rebound in stock prices mainly reflects the capital game and the adjustment of future expectations. However, the short-term excess production capacity is difficult to be effectively consumed, and leading companies pursuing integrated development will also prolong the industry's bottoming time.
HTSC raised the target price of GCL Tech (03800.HK) to 2.29 yuan. The third-quarter loss narrowed on a quarterly basis.
HTSC's report stated that GCL Tech (03800.HK) incurred a first three quarters loss of 2.971 billion RMB (below), with the photovoltaic material business suffering a loss of 1.8 billion RMB, mainly due to sharp declines in polysilicon and silicon wafer prices. The third quarter loss was 1.492 billion RMB, primarily due to the company's progress in optimizing production lines and continuously reducing cash costs. The report indicated that GCL Tech's third-quarter performance fell short of the bank's expected loss of 1.23 billion RMB, speculated to be mainly due to a larger-than-expected decline in product prices. Considering the mismatch of supply and demand in the silicon material segment, energy-intensive and low-efficiency production capacities may be restricted. Bullish on the company's advantage in polysilicon costs and leading production capacity.