Jiao Yin International Maintains "Buy" Rating for GCL TECH (03800) as Price Surge in Polysilicon Drives Turnaround

Stock News
Oct 21

According to a report from Jiao Yin International, GCL TECH (03800) achieved a profit of 960 million RMB in the photovoltaic materials business segment for the third quarter of 2025, returning to profitability (including a post-tax profit of 640 million RMB from the sale of its joint venture, Xinhua Semiconductor). This turnaround was supported by a significant increase in polysilicon prices, which have risen sharply since late July due to a policy that prevents selling below cost. Specifically, the price of granular silicon has increased from a low of 34,000 RMB per ton to the current 50,000 RMB per ton, including tax. Furthermore, Jiao Yin International anticipates that rising utilization rates will notably dilute unit depreciation and expenses, further supporting the profitability of the granular silicon business. Consequently, Jiao Yin International has revised its net profit forecast for GCL TECH, adjusting the target price slightly to HKD 1.54 based on a price-to-earnings ratio of 16 times for 2026, while maintaining a "buy" rating.

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