Daqo down after Q2 loss, production forecast cut

Daqo New Energy

26/08/2024 15:21

** Shares of polysilicon manufacturer Daqo New Energy  DQ.N 
down 7.89% at $14
    ** Company posts loss in second quarter as market price for
polysilicon falls below production cost
    ** Q2 net loss attributable to the company at $119.8 mln vs
a profit of $103.7 mln a year ago
    **"We believe the current low prices and market downturn
will eventually result in a healthier market, as poor
profitability, losses and cash burn will lead to many industry
players exiting the business, with some possible bankruptcies,"
says CEO Xiang Xu
    ** Company also cuts forecast for full-year polysilicon
production to the range of 210,000 MT - 220,000 MT from 280,000
MT - 300,000 MT projected earlier
    ** DQ manufactures and sells high-purity polysilicon to
photovoltaic product makers
    ** Seven of 12 analysts rate the stock "buy" or higher, 3
"hold" and 2 "sell"; median PT is $19.30 - LSEG data
    ** As of last close, stock down nearly 43% YTD



 (Reporting by Prakhar Srivastava in Bengaluru)
 ((Prakhar.Srivastava2@thomsonreuters.com;))