FLAT GLASS (06865) saw its stock price surge by 5.02% in Thursday's trading session, as part of a broader rally in Hong Kong-listed solar stocks. The significant uptick comes in the wake of news that 17 leading solar companies have signed a capacity reserve agreement, signaling a potential transformation in the industry's supply-side dynamics.

The solar sector's collective rise was notable, with peers such as XINTE ENERGY, GCL TECH, and XINYI SOLAR also posting substantial gains. This industry-wide movement was triggered by the confirmation of the capacity reserve agreement by Zhu Gongshan, Chairman of GCL Group, during a recent economic program on CCTV. The agreement, involving discussions with executives from TCL and LONGi Green Energy, is seen as a strategic move to stabilize the market and improve industry profitability.

Analysts at Shenwan Hongyuan have highlighted the importance of this development, noting that it will accelerate supply-side reforms in the solar sector. The industry has already been showing signs of recovery, with polysilicon prices climbing above comprehensive cost levels since Q3 2025, supported by "no-below-cost sales" regulations. This positive trend in prices and profitability is likely a key factor in FLAT GLASS's impressive stock performance, as investors anticipate improved financial results and a more stable market environment for solar companies.