BOCI has issued a research report increasing its target price for XINYI SOLAR (00968) by 40%, from HK$3 to HK$4.2, and upgrading its rating from "Hold" to "Buy," while maintaining a "Neutral" view on the industry. The bank raised its profit forecasts for the company for 2026 and 2027 by 53% and 28%, respectively, primarily due to higher average selling prices and lower cost projections. The revision also factors in the planned shutdown of two production lines starting in July 2025. XINYI SOLAR reported core net profit of RMB 2.6 billion for 2025, excluding impairment losses of RMB 2.3 billion related to its photovoltaic glass and polysilicon assets. However, weaker demand is expected to suppress average selling prices, likely leading to another decline in gross margin in the first half of 2026. This could accelerate the closure of inefficient furnaces and help the company regain market share. Additionally, the company's new production line in Indonesia may benefit from further premiums in overseas markets, especially given potential expansions in U.S. solar manufacturing capacity.