Global solar: COVID-19 disruption less severe than feared, HSBC says

Xinyi Solar Holdings

23/09/2020 13:00

** In a note on global solar cell suppliers, HSBC says
demand is bouncing back robustly as countries have exited
lockdowns and delayed auctions have resumed
    ** "Potential new lockdowns risk introducing some volume
spillage into 2021 but consumer and investor appetite for solar
appears strong," the broker says
    ** HSBC adds it still believes that increasingly low costs
should cement solar's place as a core renewable power technology
to 2030
    ** The broker upgrades Wacker Chemie  WCHG.DE  to "buy" from
"hold", saying the company now has higher 2021 EBITDA estimates
in Polysilicon thanks to higher price and volume assumptions,
and Polymers driven by low raw material costs and cost cutting 
    ** "Wacker is gaining share supplying high quality n-type
mono grade poly into China and should benefit from pricing and
demand strength," it adds
    ** HSBC says it likes low-cost China upstream and solar
glass, preferring market share growth stories such as Xinyi
Solar  0968.HK  and upstream cost leaders like Tongwei
 600438.SS  over wafer original equipment manufacturer Longi
 601012.SS 
    ** Wacker Chemie's shares are up 5.9%

 ((bartosz.dabrowski@tr.com))