Junda Shares (002865.SZ): 3Q25 Review – Overseas Expansion Accelerates Amidst Cyclical Bottoming

Date: October 31, 2025
Ticker: 002865.SZ
Rating: Recommend (Maintained)
Current Price: CNY 41.51
Target Valuation Context: 2026E P/E of 19x; 2027E P/E of 11x

Executive Summary

Junda Shares (002865.SZ), a leading specialized manufacturer of high-efficiency photovoltaic (PV) cells, released its third-quarter financial results for 2025 on October 27, 2025. The company’s performance largely aligned with market expectations, characterized by a significant structural shift in its revenue composition towards overseas markets and a narrowing of losses in the third quarter compared to the previous year. While the cumulative net profit for the first three quarters of 2025 remained negative due to industry-wide pricing pressures and intense competition, the sequential improvement in Q3 revenue and the robust expansion of its international footprint signal a pivotal turning point in the company’s strategic execution.

In 3Q25, Junda reported quarterly revenue of CNY 2.018 billion, representing a year-over-year (YoY) increase of 10.42% and a quarter-over-quarter (QoQ) rise of 12.86%. Although the company recorded a net loss attributable to shareholders of CNY 155 million in Q3, this marks a notable contraction in losses compared to the same period last year. Crucially, the proportion of overseas sales surged to 51% in the first nine months of 2025, up from 24% in full-year 2024, underscoring the success of its globalization strategy. This geographic diversification has not only mitigated the impact of domestic price wars but also positioned Junda as a primary supplier in high-margin markets such as India, Turkey, and Europe.

From a technological standpoint, Junda continues to solidify its leadership in N-type TOPCon technology while aggressively laying the groundwork for next-generation solutions. The company’s pilot xBC battery cells have demonstrated conversion efficiency improvements of 1-1.5 percentage points over mainstream N-type cells, and its perovskite tandem cell research has achieved a laboratory efficiency of 32.08%, placing it at the forefront of the industry. These advancements are critical for maintaining competitive moats in a sector where technological iteration is the primary driver of profitability.

Financially, the company maintains a strong liquidity position, with cash reserves of CNY 3.505 billion and a cash ratio of 87% as of the end of 3Q25. This robust balance sheet provides the necessary flexibility to navigate the current industry downturn, fund capacity expansions in strategic overseas locations (notably Turkey), and invest in R&D for future technology nodes.

We maintain our "Recommend" rating on Junda Shares. Our investment thesis is predicated on three core pillars: (1) the successful pivot to high-margin overseas markets which will drive margin recovery as global supply-demand dynamics rebalance; (2) the company’s status as a pure-play leader in efficient PV cells with superior cost control and technological agility; and (3) the anticipated industry-wide supply clearance that should catalyze a return to profitability in 2026. We project the company to return to net profitability in 2026 with an estimated net profit of CNY 631 million, growing to CNY 1.171 billion in 2027. At current valuation levels, the stock offers an attractive risk-reward profile for long-term institutional investors seeking exposure to the consolidation phase of the global PV supply chain.

Key Takeaways

1. Financial Performance: Revenue Resilience and Loss Narrowing in Q3

The third quarter of 2025 served as a critical inflection point for Junda Shares, demonstrating resilience in top-line growth and early signs of bottoming out in profitability metrics despite the challenging macroeconomic environment for the solar sector.

Quarterly Dynamics:
* Revenue Growth: In 3Q25, Junda generated revenue of CNY 2.018 billion. This represents a 10.42% YoY increase and a 12.86% QoQ increase. The sequential growth is particularly noteworthy given the seasonal fluctuations and persistent price pressure in the PV cell market. It indicates that the company’s sales volume is expanding, likely driven by the ramp-up of overseas shipments and the fulfillment of strategic contracts in emerging markets.
* Profitability Trajectory: The company reported a net loss attributable to shareholders of CNY 155 million in 3Q25, with a deducted non-recurring net loss of CNY 250 million. While still in negative territory, the loss has narrowed significantly compared to the same period in 2024. This improvement reflects the combined effects of higher-value overseas sales mix, ongoing cost reduction initiatives, and operational efficiency gains.
* Cumulative Performance: For the first nine months of 2025 (1Q-3Q), total revenue stood at CNY 5.682 billion, a decline of 30.72% YoY. The cumulative net loss was CNY 419 million, with a deducted non-recurring net loss of CNY 715 million. The disparity between the quarterly recovery and the cumulative decline highlights the severity of the H1 2025 market conditions, where domestic prices hit historic lows. However, the Q3 momentum suggests that the worst of the earnings compression may be behind the company.

Table 1: Junda Shares Financial Highlights (3Q25 & 9M25)

Source: Company Reports, Minsheng Securities Institute

The divergence between revenue growth and profit margins remains a key characteristic of the current industry cycle. However, Junda’s ability to grow revenue double-digits sequentially in Q3, while peers struggle with inventory write-downs and capacity utilization issues, underscores its competitive advantage in order acquisition and customer retention, particularly in international markets.

2. Strategic Pivot: Overseas Sales Surge to 51%

The most significant structural change in Junda’s business model is the rapid acceleration of its overseas expansion. This strategic pivot is not merely a response to domestic saturation but a proactive move to capture higher-margin opportunities in regions with structural supply deficits.

Shift in Revenue Mix:
* Overseas Contribution: The proportion of overseas sales in Junda’s total revenue has more than doubled, rising from 24% in full-year 2024 to 51% in 1Q-3Q 2025. This milestone indicates that the company has successfully transitioned from a domestically focused manufacturer to a globally integrated supplier.
* Market Leadership: Junda has established itself as a primary supplier of PV cells in several key international markets, including India, Turkey, and Europe. In these regions, the company holds a leading market share, benefiting from its reputation for high-quality, high-efficiency N-type TOPCon products. The premium pricing available in these markets, driven by local content requirements, trade barriers against Chinese modules, and urgent decarbonization targets, has been instrumental in supporting Junda’s margins during the domestic price war.

Capacity Expansion in Turkey:
* Strategic Partnership: Junda has formally signed a strategic cooperation agreement with a local module customer in Turkey. This partnership is designed to secure long-term off-take agreements and facilitate the localization of production.
* Addressing Structural Deficits: The Turkish market, along with broader European and Middle Eastern regions, faces a structural shortage of high-performance PV cell capacity. By establishing local production capabilities, Junda aims to bypass potential trade barriers, reduce logistics costs, and respond more agilely to regional demand fluctuations. This move aligns with the global trend of "friend-shoring" and supply chain regionalization.
* Project Status: Capacity construction is actively progressing. The initiative is expected to fill the regional gap in battery capacity, providing Junda with a first-mover advantage in a high-barrier entry market.

Prudent Approach to Oman Project:
* Risk Assessment: Regarding the previously announced 5GW high-efficiency battery production base in Oman, Junda is adopting a cautious and prudent approach. The company is conducting a comprehensive evaluation of the project’s returns and risks, taking into account evolving international trade dynamics, tariff policies, and market conditions in both domestic and overseas sectors.
* Capital Discipline: This deliberative stance reflects management’s commitment to capital discipline. Rather than rushing into large-scale CAPEX commitments amidst geopolitical uncertainty, Junda is prioritizing projects with clearer visibility on returns (such as Turkey) while keeping the Oman option open for future deployment when conditions are more favorable. This flexibility is a key strength in managing downside risk.

Table 2: Evolution of Overseas Sales Contribution

Source: Company Reports, Minsheng Securities Institute

The shift to a majority-overseas revenue base fundamentally alters Junda’s risk profile. It reduces dependence on the hyper-competitive Chinese domestic market and exposes the company to diverse demand drivers. Furthermore, overseas markets typically exhibit less price volatility and higher willingness to pay for premium efficiency, which should support margin stabilization and expansion in the coming quarters.

3. Technological Moat: Leading N-Type TOPCon and Next-Gen R&D

In the PV industry, technological leadership is the primary determinant of long-term competitiveness. Junda Shares has consistently demonstrated its ability to lead in process innovation and product efficiency, maintaining its status as a specialized battery cell leader.

N-Type TOPCon Optimization:
* Continuous Iteration: The company continues to invest heavily in the optimization of N-type TOPCon (Tunnel Oxide Passivated Contact) technology, which is currently the mainstream high-efficiency solution. Junda’s focus is on enhancing yield rates, reducing non-silicon costs, and improving cell consistency.
* Advanced Process Integration: Junda is actively researching and introducing advanced manufacturing techniques such as Laser Edge Passivation (LEP) and Multi-Slicing technologies.
* Laser Edge Passivation: This technique improves the passivation quality of the cell edges, reducing recombination losses and boosting open-circuit voltage (Voc), thereby enhancing overall conversion efficiency.
* Multi-Slicing: This approach allows for thinner wafers and reduced silicon consumption, directly lowering material costs without compromising mechanical strength or electrical performance.
* Holistic Innovation: Beyond cell-level improvements, Junda is exploring synergies in battery structure, electrode compounding, and module technology integration. This holistic approach ensures that cell innovations are compatible with downstream module assembly requirements, creating value across the entire supply chain.

Next-Generation Technology Layout:
* xBC Battery Breakthroughs: Junda is making significant strides in xBC (Back Contact) technology, widely regarded as the next major evolutionary step after TOPCon.
* Efficiency Gain: The company’s pilot line xBC cells have achieved a conversion efficiency that is 1-1.5 percentage points higher than mainstream N-type TOPCon cells. This substantial gain translates directly into higher power output per unit area, a critical metric for space-constrained installations (e.g., residential rooftops).
* Parity with Industry Leaders: All key parameters of Junda’s xBC cells are consistent with industry-leading standards. The company is currently advancing preparations for mass production, positioning itself to capitalize on the anticipated shift towards BC technology in premium market segments.
* Perovskite Tandem Cells: Looking further ahead, Junda is collaborating with external research institutions to develop perovskite-silicon tandem cells.
* Record Efficiency: The laboratory efficiency of these tandem cells has reached 32.08%, a figure that places Junda at the forefront of global R&D in this field.
* Strategic Significance: Perovskite tandem technology represents the theoretical upper limit of single-junction silicon cells. By securing early leadership in this domain, Junda is future-proofing its business against potential disruptive technologies and ensuring it remains relevant in the post-TOPCon/BC era.

Table 3: Technological Milestones and R&D Progress

Source: Company Reports, Minsheng Securities Institute

The dual strategy of optimizing current cash cows (TOPCon) while aggressively developing future stars (xBC, Perovskite) ensures that Junda can generate profits today while securing its competitive position for tomorrow. In an industry where technology obsolescence can occur rapidly, this R&D intensity is a critical defensive and offensive moat.

4. Financial Health: Robust Liquidity and Balance Sheet Strength

Despite the cyclical downturn in the PV sector, Junda Shares has maintained a remarkably strong balance sheet. This financial resilience is a key differentiator, allowing the company to withstand prolonged periods of low profitability and invest counter-cyclically in capacity and technology.

Cash Position:
* Monetary Funds: As of the end of 3Q25, Junda held monetary funds totaling CNY 3.505 billion.
* Cash Ratio: The company’s cash ratio stood at an impressive 87%. This high level of liquidity provides a substantial buffer against operational shocks, enables timely payment of suppliers (securing better terms), and funds ongoing CAPEX without excessive reliance on external debt.

Implications for Investors:
* Survivability: In a consolidation phase where weaker players face liquidity crises and bankruptcy risks, Junda’s cash-rich position ensures its survival and ability to gain market share as competitors exit.
* Strategic Flexibility: The strong cash position allows Junda to pursue opportunistic investments, such as the Turkey capacity expansion, and to continue R&D spending even when earnings are under pressure.
* Debt Management: While the company does carry debt (short-term borrowings of CNY 1.511 billion and long-term borrowings of CNY 2.642 billion as per the forecast table), the high cash coverage ratio indicates manageable leverage. The company’s ability to service debt and fund operations internally reduces refinancing risks in a potentially tight credit environment.

Risks / Headwinds

While the outlook for Junda Shares is positive, institutional investors must remain cognizant of the inherent risks associated with the photovoltaic industry and the company’s specific operational context.

1. Downstream Demand Uncertainty

• Global Macro Factors: The growth of the PV industry is heavily dependent on government subsidies, feed-in tariffs, and corporate ESG commitments. Economic slowdowns in key markets (Europe, US, China) could lead to reduced capital expenditure on renewable energy projects.
• Grid Integration Issues: As PV penetration increases, grid congestion and curtailment issues in major markets could slow down new installations, impacting demand for cells and modules. If downstream demand grows slower than anticipated, Junda’s revenue projections may face downward pressure.

2. Intensifying Market Competition

• Price Wars: The PV cell industry is characterized by high fixed costs and homogeneous products, leading to fierce price competition. Despite Junda’s technological edge, if competitors engage in aggressive price cutting to clear inventory or gain market share, gross margins could remain compressed for longer than expected.
• Capacity Oversupply: Although supply clearance is underway, the industry still faces significant overcapacity in certain segments. A slower-than-expected exit of inefficient capacity could prolong the period of low profitability.

3. Overseas Policy and Trade Risks

• Trade Barriers: Junda’s increasing reliance on overseas markets (51% of sales) exposes it to geopolitical risks. Changes in trade policies, such as the imposition of new tariffs, anti-dumping duties, or local content requirements in India, Turkey, or Europe, could adversely affect its export volumes and margins.
• Regulatory Changes: Shifts in energy policies in key export destinations (e.g., changes in net metering rules in Europe or subsidy reductions in India) could dampen demand.
• Execution Risk in Overseas Projects: The success of the Turkey capacity expansion depends on effective execution, local regulatory compliance, and integration with local partners. Delays or operational challenges in setting up overseas facilities could impact expected returns.

4. Technological Iteration Risks

• R&D Failure: The development of next-generation technologies like xBC and perovskite tandem cells involves significant technical uncertainty. If Junda fails to achieve mass production yields or if competing technologies (e.g., HJT or alternative tandem structures) prove superior, the company’s R&D investments may not yield the expected competitive advantage.
• Obsolescence: The rapid pace of technological change in the PV industry means that current TOPCon assets could become stranded if a superior technology achieves commercial viability faster than anticipated.

5. Capacity Construction Delays

• Project Timelines: Any delays in the construction and ramp-up of the Turkey facility or other planned capacities could defer revenue recognition and margin improvement. Supply chain disruptions for equipment or raw materials could also impact timelines.

Rating / Sector Outlook

Sector Outlook: Consolidation and Rebalancing

The global photovoltaic industry is currently undergoing a painful but necessary phase of consolidation. After years of rapid expansion, the sector is grappling with significant overcapacity, particularly in the Chinese domestic market. This has led to plummeting prices across the supply chain, from polysilicon to modules, eroding profitability for many manufacturers.

However, we view this period as a precursor to a healthier market structure.
1. Supply Clearance: High-cost, inefficient producers are being forced to exit the market or reduce production. This supply-side contraction is essential for restoring price stability and healthy margins.
2. Demand Resilience: Despite short-term fluctuations, the long-term global demand for renewable energy remains robust, driven by climate change mandates, energy security concerns, and the declining levelized cost of electricity (LCOE) for solar power.
3. Technological Premium: The market is increasingly rewarding high-efficiency products. As land and installation costs remain significant, the premium for high-efficiency cells (like N-type TOPCon and xBC) is expected to persist, benefiting technologically advanced players like Junda.

We anticipate that the industry will begin to see a meaningful rebalancing of supply and demand in late 2025 and throughout 2026. This should lead to a stabilization of prices and a gradual recovery in profitability for leading manufacturers.

Company Rating: Recommend (Maintained)

We maintain our "Recommend" rating for Junda Shares (002865.SZ).

Rationale:
* Valuation Attractiveness: Based on the closing price of CNY 41.51 on October 29, 2025, the stock trades at a forward P/E of 19x for 2026E and 11x for 2027E. Given the company’s projected earnings growth trajectory (returning to profit in 2026 and nearly doubling profits in 2027), these multiples appear reasonable, especially considering its leadership position and overseas growth potential.
* Earnings Inflection: Our financial models predict a sharp turnaround in profitability, with net profit moving from a loss of CNY 542 million in 2025E to a profit of CNY 631 million in 2026E and CNY 1.171 billion in 2027E. This represents a compound annual growth rate (CAGR) of over 100% from 2026 to 2027, reflecting the operating leverage inherent in the business as margins recover.
* Strategic Execution: The successful shift to overseas markets and the prudent management of capacity expansion demonstrate strong executive capability. The company is well-positioned to capture the upside of the industry recovery.

Table 4: Valuation Metrics and Peer Comparison Context

Source: Wind, Minsheng Securities Institute Estimates. Note: Share price as of Oct 29, 2025.

The projected Return on Equity (ROE) improvement from negative territory in 2025 to 12.08% in 2026 and 18.67% in 2027 further validates the investment case, indicating a return to efficient capital utilization and value creation for shareholders.

Investment View

Core Investment Logic

Our bullish stance on Junda Shares is built upon a convergence of cyclical recovery, structural transformation, and technological leadership.

1. Cyclical Recovery Play:
The PV industry is cyclical, and we are currently near the bottom of the cycle. Junda’s financials in 3Q25 show early signs of stabilization. As industry supply clears and demand continues to grow globally, we expect a V-shaped recovery in profitability. Junda, with its low-cost structure and high-efficiency products, is poised to be a primary beneficiary of this upturn. The transition from loss-making in 2025 to significant profitability in 2026-2027 offers a compelling earnings growth story.

2. Structural Alpha from Globalization:
Junda’s shift to a 51% overseas revenue mix is a game-changer. Unlike peers who remain heavily exposed to the brutal domestic price war, Junda has diversified its revenue base into higher-margin markets. The strategic expansion into Turkey and the strong presence in India and Europe provide a hedge against domestic volatility. This structural change should result in a sustained premium in gross margins compared to purely domestic-focused competitors. The overseas strategy is not just a temporary fix but a long-term competitive advantage that enhances revenue visibility and stability.

3. Technological Moat and Future-Proofing:
In the technology-driven PV sector, Junda’s R&D prowess is a critical asset. Its leadership in N-type TOPCon ensures current competitiveness, while its advancements in xBC and perovskite tandem cells secure its future relevance. The 1-1.5% efficiency advantage in xBC pilot lines is significant and could command a substantial price premium in mass production. This technological depth allows Junda to dictate product mix and maintain pricing power, even in competitive environments.

4. Financial Resilience and Capital Discipline:
With CNY 3.5 billion in cash and a prudent approach to CAPEX (e.g., the careful evaluation of the Oman project), Junda has the financial fortitude to survive the downturn and invest in growth. This balance sheet strength reduces bankruptcy risk and allows the company to act opportunistically, such as acquiring distressed assets or accelerating high-return projects like the Turkey plant.

Key Drivers for Future Performance

• Margin Expansion: As the proportion of high-margin overseas sales continues to rise and domestic prices stabilize, we expect gross margins to expand from the current low levels (estimated ~1.93% in 2025E) to healthier levels (11.74% in 2026E and 13.25% in 2027E). This margin expansion is the primary driver of the projected profit surge.
• Volume Growth: The commissioning of new overseas capacity (Turkey) and the continued ramp-up of existing facilities will drive volume growth. We forecast revenue to rebound by 48.4% in 2026, reflecting both volume increases and potential price stabilization.
• Cost Reduction: Ongoing efforts in non-silicon cost reduction, yield improvement, and supply chain optimization will further enhance profitability. The introduction of multi-slicing and other advanced processes will lower material costs, supporting margin resilience.

Important Financial and Operational Changes

• Revenue Composition: The most notable operational change is the flip in revenue geography, with overseas now dominating domestic sales. This requires investors to monitor global trade policies and currency fluctuations more closely.
• Profitability Turnaround: The shift from net losses to net profits in 2026 is a critical financial milestone. Investors should track quarterly gross margins and net income trends to confirm the sustainability of this turnaround.
• CAPEX Cycle: The company is in a phase of strategic CAPEX for overseas expansion. Monitoring the progress of the Turkey project and any updates on the Oman project will be key indicators of future growth capacity.

Conclusion

Junda Shares represents a high-quality investment opportunity in the photovoltaic sector, offering exposure to the industry’s inevitable recovery and the company’s unique strategic advantages. Its successful pivot to overseas markets, combined with technological leadership and financial strength, positions it to outperform peers in the coming years.

While short-term volatility and industry risks persist, the long-term fundamentals are strong. The current valuation, reflecting the trough of the cycle, provides an attractive entry point for institutional investors with a medium-to-long-term horizon. We believe that as the industry clears supply and Junda’s overseas capacities come online, the market will re-rate the stock to reflect its improved earnings potential and reduced risk profile.

We recommend investors accumulate positions in Junda Shares, anticipating a significant appreciation in value as the company executes its growth strategy and the PV industry enters a new phase of sustainable profitability.

Appendix: Detailed Financial Forecasts and Analysis

To provide a comprehensive view of our investment thesis, we delve deeper into the financial projections and underlying assumptions used in our model.

Revenue Forecast Assumptions

• 2025E (CNY 8.18 Billion): We project a 17.8% decline in revenue for full-year 2025 compared to 2024. This reflects the continued pressure from low domestic prices in H1 2025 and the transitional nature of the year as overseas capacity ramps up. However, the strong Q3 performance suggests that the decline is moderating, with H2 2025 expected to show sequential growth.
• 2026E (CNY 12.135 Billion): We forecast a robust 48.4% revenue growth in 2026. This is driven by:
  1. Full-Year Contribution of Overseas Sales: The Turkey facility and expanded exports to India/Europe will contribute fully to the year’s revenue.
  2. Industry Recovery: Stabilization of PV cell prices as supply-demand balances.
  3. Volume Growth: Increased production capacity and higher utilization rates.
• 2027E (CNY 13.75 Billion): Revenue growth slows to 13.3% as the base effect diminishes and the market matures. Growth will be driven by incremental capacity additions and potential new market entries.

Profitability Forecast Assumptions

• Gross Margin Recovery:
  • 2025E (1.93%): Margins remain thin due to the lag effect of low-priced contracts and ongoing competition. However, this is a significant improvement from the near-zero margins seen in some quarters of 2024.
  • 2026E (11.74%): A dramatic expansion in gross margin is expected as the high-margin overseas mix becomes dominant and domestic prices recover. This assumption is conservative compared to historical peaks but realistic given the increased competition.
  • 2027E (13.25%): Further margin improvement driven by economies of scale, technological efficiencies (xBC adoption), and optimized supply chain management.
• Operating Expenses:
  • R&D: We assume continued high R&D spending (CNY 164M in 2025E, rising to CNY 220M in 2027E) to maintain technological leadership. This is a necessary investment to sustain the competitive moat.
  • Selling & Administrative: These expenses are expected to grow in line with revenue but benefit from operating leverage as scale increases.
• Net Profit:
  • 2025E (-CNY 542 Million): The company remains in loss due to the cumulative impact of H1 weakness and ongoing investment costs.
  • 2026E (CNY 631 Million): The turnaround year, driven by margin expansion and revenue growth.
  • 2027E (CNY 1.171 Billion): Strong profit growth as the company operates at optimal efficiency and captures the full benefit of its strategic initiatives.

Cash Flow and Balance Sheet Projections

• Operating Cash Flow: We project positive operating cash flow of CNY 453 million in 2025E, improving significantly to CNY 2.097 billion in 2026E and CNY 2.053 billion in 2027E. This reflects the conversion of profits into cash as working capital dynamics normalize.
• Capital Expenditure: CAPEX remains elevated in 2025E (CNY 958 million) and 2026E (CNY 1.187 billion) to fund overseas expansion and technology upgrades. This is a strategic use of cash to drive future growth.
• Financing: The company is expected to rely on a mix of internal cash generation and moderate debt financing to fund CAPEX. The strong cash position reduces the need for equity dilution.

Sensitivity Analysis

Our investment thesis is sensitive to several key variables:
1. PV Cell Prices: A 10% deviation in average selling prices (ASP) could significantly impact gross margins and net profit. Our base case assumes a gradual stabilization and modest recovery in ASPs.
2. Overseas Sales Mix: If the overseas sales proportion falls below 40%, margin recovery would be slower. Conversely, if it exceeds 60%, profitability could exceed our forecasts.
3. Technology Yield: The successful mass production of xBC cells with high yields is critical for the 2027 profit outlook. Delays or yield issues could dampen the premium pricing assumption.

Final Thoughts for Institutional Investors

Junda Shares offers a compelling narrative of transformation and recovery. It is no longer just a cyclical play on PV demand but a structural story of globalization and technological innovation. For institutional investors, the key is to recognize that the current losses are transient and part of a strategic investment phase. The company’s strong balance sheet provides a safety net, while its overseas expansion and R&D pipeline provide the upside potential.

We advise investors to monitor the following catalysts:
* Quarterly Margin Trends: Confirmation of gross margin expansion in Q4 2025 and Q1 2026.
* Turkey Project Milestones: Updates on construction progress and initial production runs.
* xBC Mass Production Announcements: Formal launch and customer adoption of xBC products.
* Industry Supply Data: Evidence of capacity exits among smaller competitors, signaling the end of the oversupply phase.

In conclusion, Junda Shares is well-positioned to emerge from the current industry downturn as a stronger, more globally diversified, and technologically advanced leader. We maintain our Recommend rating and believe the stock offers significant upside potential for patient capital.

Disclaimer: This report is based on information available as of October 31, 2025. The views expressed are those of the analysts and do not constitute investment advice. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions. The financial forecasts are subject to uncertainties and actual results may differ materially.