Junda Shares (002865.SZ): Navigating the Trough – Overseas Expansion and Technological Moat Drive Long-Term Value

Date: October 28, 2025
Analyst: Institutional Research Team
Rating: BUY (Maintained)
Current Price: CNY 40.25
Target Price: Implied Upside based on 2026/2027 Recovery Trajectory

Executive Summary

Junda Shares (002865.SZ), a leading global supplier of high-efficiency solar cells, reported its third-quarter financial results for 2025 amidst a challenging industry backdrop characterized by intense price competition and margin compression. While the company continues to face short-term profitability headwinds, with a net loss attributable to shareholders of CNY 420 million in the first nine months of 2025, several structural positives are emerging that warrant a maintained "Buy" rating.

The core investment thesis rests on three pillars:
1. Strategic Geographic Diversification: A significant pivot towards overseas markets, where sales占比 (proportion) surged from ~24% in 2024 to 51% in 1Q-3Q 2025, capturing higher margins in regions like India and Turkey.
2. Technological Leadership: Continued R&D investment in next-generation xBC and perovskite tandem technologies, positioning Junda at the forefront of the industry’s efficiency race.
3. Balance Sheet Resilience: Despite operational cash flow pressures, the company maintains a robust liquidity position bolstered by a recent HKD 1.3 billion financing initiative, which is expected to significantly deleverage the balance sheet.

We acknowledge the near-term pain in the photovoltaic (PV) cell sector, where "involution" (excessive internal competition) has driven prices below cost for many players. However, we anticipate an inflection point in 2026 as industry consolidation accelerates and supply-demand dynamics rebalance. Junda’s proactive capacity layout in non-China markets and its technological edge provide a defensive moat and an offensive growth engine for the subsequent recovery cycle.

We have adjusted our earnings forecasts to reflect the prolonged period of margin pressure in 2025 but maintain confidence in the company’s ability to return to robust profitability in 2026 and 2027. We project a turnaround to net profits of CNY 652 million in 2026 and CNY 1.28 billion in 2027. The current valuation, trading at a P/B of approximately 1.64x (2025E) and implying a forward P/E of 9.23x by 2027, offers an attractive entry point for long-term institutional investors willing to look through the cyclical trough.

Key Takeaways

1. Financial Performance: Short-Term Pressure Amidst Volume Growth

Revenue and Profitability Trends
In the first three quarters of 2025 (1Q-3Q 2025), Junda Shares reported total operating revenue of CNY 5.68 billion, representing a year-over-year (YoY) decline of 30.7%. This contraction is primarily attributed to the sharp decline in average selling prices (ASPs) across the PV industry, rather than a collapse in demand volume. The net profit attributable to parent company shareholders stood at a loss of CNY 420 million, a slight YoY decrease of 0.5% in terms of loss magnitude, while the deducted non-recurring net profit was a loss of CNY 720 million, showing a marginal improvement of 2.7% YoY.

The gross margin for 1Q-3Q 2025 was 1.5%, an improvement of 1.2 percentage points (pct) YoY. This indicates that while the company is still operating near the break-even point or at a slight gross loss on a net basis due to expenses, the direct cost structure relative to revenue is stabilizing. The net profit margin attributable to shareholders was -7.4%, a deterioration of 2.3 pct YoY, reflecting the burden of fixed costs and financial expenses against a shrinking revenue base.

Third Quarter (3Q 2025) Specifics
The third quarter showed signs of sequential stabilization in operations, despite continued YoY challenges:
* Revenue: CNY 2.02 billion, up 10.4% YoY and 12.9% quarter-over-quarter (QoQ). This sequential growth is a positive signal, suggesting that shipment volumes are increasing even as prices remain depressed.
* Net Profit: A loss of CNY 160 million, which represents a 38% narrower loss YoY but a slight 1.6% widening QoQ.
* Deducted Non-Recurring Profit: A loss of CNY 250 million, narrowing by 27.5% YoY and improving slightly by 0.8% QoQ.
* Gross Margin: 0.7% in 3Q, improving by 2.9 pct YoY and 2.8 pct QoQ. This sequential improvement in gross margin is critical, indicating that the company is managing its production costs effectively or achieving a better product mix, even if absolute profitability remains elusive.
* Net Margin: -7.7%, improving by 6 pct YoY and 1.1 pct QoQ.

Shipment Analysis
Junda’s shipment volumes remain resilient, defying the revenue contraction caused by price drops.
* 1Q-3Q 2025 Shipments: Approximately 22 GW, a 6% YoY increase.
* 3Q 2025 Shipments: Estimated at 8.1 GW, representing an 11% YoY increase and a 16% QoQ increase.
* Unit Economics: We estimate the loss per watt in 3Q 2025 to be approximately CNY 0.018/watt. This figure is flat to slightly improved compared to the previous quarter, suggesting that the bottom of the unit profitability curve may have been reached. The company guides for full-year 2025 shipments of approximately 30 GW.

(Note: 1Q-3Q 2024 figures are derived/implied based on YoY % changes provided in the report for context.)

The divergence between rising shipments and falling revenue underscores the severity of the price war in the PV cell sector. However, the ability to grow volume by double digits in such an environment demonstrates Junda’s strong market share retention and customer stickiness.

2. Strategic Pivot: Overseas Markets as a Profitability Anchor

One of the most significant developments in Junda’s 2025 performance is the dramatic shift in its geographic revenue mix. In response to domestic saturation and margin erosion, the company has successfully accelerated its overseas expansion strategy.

Surge in Overseas Revenue Contribution
* 2024 Baseline: Overseas sales accounted for approximately 24% of total revenue.
* 1Q-3Q 2025 Reality: Overseas sales占比 jumped to 51%.

This structural shift is not merely a statistical anomaly but a strategic imperative. Overseas markets, particularly in emerging economies with growing energy demands and less entrenched manufacturing bases, offer higher price premiums and better margins compared to the hyper-competitive Chinese domestic market.

Key Regional Drivers: India and Turkey
* India & Turkey Demand: The report highlights robust demand in India and Turkey. These markets are experiencing rapid solar adoption driven by government renewable energy targets and energy security concerns.
* Price Premium: Junda is able to maintain a price differential (spread) of approximately CNY 0.02/watt in these regions compared to domestic prices. While seemingly small on a per-unit basis, at a scale of multiple gigawatts, this spread translates into hundreds of millions of RMB in additional gross profit, which is crucial for covering fixed costs and moving towards net profitability.
* Market Access: By establishing a strong foothold in these regions, Junda is diversifying its revenue streams away from the single-point failure risk of the Chinese domestic market.

Global Capacity Layout and Risk Management
Junda’s overseas strategy involves not just sales but also localized production and partnership structures to mitigate trade barriers and logistics costs.

• Oman Project (5GW): The company is currently navigating equity structure discussions with partners for its 5GW project in Oman. The report notes a "prudent" approach, fully evaluating yield risks and benefits. This caution is warranted given the complex geopolitical and regulatory environments in the Middle East. The delay or restructuring of this project reflects a mature risk management framework rather than a lack of commitment. The goal is to ensure that any capital deployed yields sustainable returns without exposing the company to undue sovereign or partner risks.
• Turkey Joint Venture: Progress is smooth on the high-efficiency cell project co-built with Turkish customers. Junda has already formed a long-term equity investment (noted as 9kw in the text, likely a typo for 9MW or a specific initial tranche, but the key is the establishment of the entity).
  • Timeline: Expected to start shipments by late 2025 or early 2026.
  • Strategic Value: This project will fill a regional capacity gap in Europe’s neighboring market, allowing Junda to serve the European and Turkish markets with locally produced goods, potentially bypassing certain trade restrictions or tariffs applicable to Chinese imports. It strengthens global supply chain synergy and enhances customer relationships through local presence.

The shift to a >50% overseas revenue mix fundamentally alters Junda’s risk profile. It reduces exposure to domestic policy shifts and price wars while tapping into higher-margin growth pockets. This diversification is a key differentiator compared to peers who remain heavily reliant on the domestic market.

3. Technological Moat: Leading the Next-Generation Efficiency Race

In the PV industry, technology is the ultimate deflator of cost and driver of premium pricing. Junda continues to invest heavily in R&D, focusing on two key next-generation technologies: xBC (Back Contact) and Perovskite Tandem cells.

xBC Technology: Commercialization Ready
* Efficiency Gain: Junda’s pilot line xBC cells demonstrate an efficiency advantage of 1-1.5 percentage points (pct) over mainstream N-type TOPCon cells. In the solar industry, a 1% efficiency gain is substantial, translating directly to lower Levelized Cost of Energy (LCOE) for downstream customers.
* Parameter Consistency: The parameters of Junda’s xBC cells are consistent with industry leaders, indicating that the company has solved key manufacturing yield and consistency challenges.
* Mass Production Preparation: The company is actively pushing towards mass production readiness. As the industry gradually transitions from PERC to TOPCon and eventually to BC technologies, being an early mover in xBC positions Junda to capture the next wave of premium product demand. BC technology is particularly valued in distributed generation and high-end markets due to its aesthetic appeal and higher power density.

Perovskite Tandem Cells: Future-Proofing
* Record Efficiency: Junda, in collaboration with external research institutions, has achieved a laboratory efficiency of 32.08% for perovskite-silicon tandem cells.
* Industry Leadership: This efficiency level is at the forefront of the global industry. While commercialization of tandem cells is still a few years away, achieving such high efficiencies in the lab validates Junda’s R&D capabilities and partnerships. It signals to the market that Junda is not just a manufacturer but a technology innovator capable of competing in the post-silicon-limit era.
* Strategic Implication: Ownership of IP and know-how in tandem technologies provides a long-term optionality value. As the theoretical efficiency limit of single-junction silicon cells is approached, tandem structures are the only viable path to significant further gains. Junda’s early lead here could translate into licensing opportunities or first-mover advantage in the 2030 timeframe.

R&D Expense Discipline
Despite the financial losses, Junda has maintained its R&D spend. In 1Q-3Q 2025, R&D expenses were part of the overall period expenses which remained stable. The commitment to R&D during a downturn is a hallmark of companies intending to lead the subsequent upcycle. It ensures that when demand recovers and customers prioritize efficiency over mere low cost, Junda will have superior products to offer.

4. Financial Health: Liquidity Strength Amidst Operational Cash Flow Pressure

A critical concern for loss-making growth companies is liquidity. Junda’s balance sheet shows a mixed picture: operational cash flow is under severe pressure, but overall liquidity remains robust due to successful financing activities.

Cash Flow Analysis
* Operating Cash Flow (OCF):
* 1Q-3Q 2025: Net OCF was -CNY 850 million, a drastic YoY decline of 222.3%.
* 3Q 2025: Net OCF was -CNY 1.02 billion, worsening by 783% YoY and 316.5% QoQ.
* Drivers: The negative OCF is driven by the combination of net losses, potential increases in working capital requirements (receivables/inventory) to support higher shipment volumes, and possibly slower collection cycles in a stressed market. The sharp deterioration in Q3 suggests that the cash conversion cycle has lengthened, putting pressure on immediate liquidity.
* Investing Cash Flow: Significant outflows continue as the company invests in new capacity (Turkey, Oman preparations, and domestic upgrades). Capex for 2025E is projected at CNY 3.64 billion.
* Financing Cash Flow: This is the lifeline. The company successfully raised HKD 1.3 billion via Hong Kong stock market financing. This inflow is crucial in offsetting the operational cash burn.

Balance Sheet Resilience
* Cash Reserves: As of the end of 3Q 2025, Junda holds:
* Monetary Funds: CNY 3.5 billion.
* Structured Deposits/Wealth Management Products: CNY 1.9 billion.
* Total Liquid Assets: ~CNY 5.4 billion.
* Debt Structure: The company has a mix of short-term and long-term debt. The recent financing is expected to reduce the asset-liability ratio by approximately 74% (Note: The report states "asset-liability ratio will be reduced by about 74%", which is likely a translation nuance meaning the level will be reduced significantly, or the financing amount covers a large portion of immediate liabilities. Given the 2024A liability ratio was 74.39%, a reduction by 74% would imply a near-zero debt level, which is unlikely. It more likely means the financing strengthens the equity base, thereby lowering the leverage ratio materially, perhaps to the 60s or 50s range. The 2025E forecast shows a liability ratio of 76.38%, which seems contradictory to the "reduction" narrative unless the financing occurs late in the year or the forecast includes new debt for capex. However, the text explicitly says "benefiting from HK financing... liability ratio will drop". We interpret this as a strong de-leveraging event that improves solvency metrics significantly post-transaction).
* Solvency: With CNY 5.4 billion in liquid assets against a backdrop of manageable short-term debt obligations (Short-term borrowings 2024A: CNY 2.59 billion; 2025E: CNY 539 million - a significant projected drop), the company is well-positioned to weather the cash burn phase. The projected drop in short-term borrowings in 2025E suggests active debt repayment or refinancing into longer-term instruments/equity.

Expense Control
* Period Expenses: 1Q-3Q 2025 period expenses totaled CNY 520 million, a YoY decrease of 6.5%.
* Expense Ratio: 9.2%, up 2.4 pct YoY due to the denominator effect (lower revenue). However, in Q3, the expense ratio was 9%, down 4.1 pct YoY and up 0.7 pct QoQ. This indicates that management is actively controlling SG&A and other overheads, preventing them from spiraling out of control despite the revenue decline.

5. Earnings Forecast and Valuation Adjustment

Given the persistent intensity of industry competition and the weaker-than-expected operational cash flow in Q3, we have revised our earnings estimates downwards for the near term. However, we maintain our long-term outlook for a strong recovery.

Revised Profit Forecast

Rationale for Adjustments:
* 2025: The deeper loss reflects the prolonged period of sub-margin pricing in Q3 and the expectation that Q4 may not see a dramatic price recovery. The "anti-involution" policies are taking time to impact actual transaction prices.
* 2026: The downgrade reflects a more conservative assumption on the speed of margin recovery. However, we still project a strong return to profitability (CNY 652 million) driven by:
1. Full contribution from higher-margin overseas capacities (Turkey).
2. Industry supply clearing leading to price stabilization.
3. Operating leverage as volumes grow.
* 2027: The forecast remains robust, assuming Junda captures a significant share of the high-efficiency xBC market and benefits from a normalized industry landscape.

Valuation Metrics

• P/B Analysis: The stock is trading at 1.64x 2025E Book Value. For a technology manufacturing leader with a strong balance sheet and clear path to profitability, this is a reasonable valuation during a cyclical trough. The projected drop to 1.26x P/B by 2027 suggests that as earnings recover, the multiple will compress, offering upside potential if the market re-rates the stock based on earnings (P/E) rather than just book value.
• P/E Analysis: The 2027E P/E of 9.23x is attractive for a growth company in the renewable energy sector, typically commanding higher multiples. This implies significant undervaluation if the 2027 profit target is met.

Risks / Headwinds

While the long-term thesis is compelling, investors must be aware of the following risks that could derail the recovery trajectory or exacerbate short-term losses.

1. Intensified Industry Competition ("Involution")

• Risk: The PV industry is notorious for cyclical overcapacity. If new capacity additions (both domestic and international) exceed demand growth, price wars could persist longer than anticipated.
• Impact: Extended periods of negative gross margins would erode cash reserves faster than projected, potentially forcing further equity dilution or debt restructuring. The "anti-involution" efforts by industry associations and government bodies may fail to curb irrational pricing behavior if individual players prioritize market share over survival.

2. Raw Material Price Volatility

• Risk: The cost of silicon wafers, silver paste, and other key inputs can fluctuate. While silicon prices have dropped, any supply shock or geopolitical disruption could spike costs.
• Impact: Since Junda operates on thin/negative margins currently, even a small increase in input costs without a corresponding increase in selling price would widen losses. The ability to pass on costs is limited in a buyer’s market.

3. Geopolitical and Trade Policy Risks

• Risk: Junda’s strategy relies heavily on overseas expansion (India, Turkey, Oman, Europe). Changes in trade policies, tariffs, or local content requirements in these regions pose a significant risk.
  • India: Potential imposition of higher tariffs on imported cells/modules to protect domestic manufacturers (ALMM list changes).
  • Europe/Turkey: Anti-subsidy investigations or carbon border adjustment mechanisms (CBAM) could increase compliance costs or restrict access.
  • Oman/Middle East: Political instability or changes in foreign investment regulations could delay or cancel the 5GW project.
• Impact: Delays in overseas projects would defer the expected margin benefits from geographic diversification, keeping Junda exposed to the lower-margin domestic market for longer.

4. Technology Iteration and Obsolescence Risk

• Risk: The PV industry undergoes rapid technological shifts. While Junda is betting on xBC and Perovskite, if another technology (e.g., HJT improvements, or a different tandem architecture) achieves commercial breakthroughs faster or at lower cost, Junda’s R&D investments could become stranded assets.
• Impact: Loss of technological leadership would erode the premium pricing power and market share, forcing Junda to compete solely on cost, where it may have less advantage against integrated giants.

5. Execution Risk in Overseas Projects

• Risk: Building and operating factories in foreign jurisdictions (Turkey, Oman) involves complexities in labor, legal, cultural, and supply chain management.
• Impact: Cost overruns, delays in commissioning, or lower-than-expected yields in these new facilities could negatively impact financial performance and investor sentiment. The "prudent" approach to the Oman project highlights this risk awareness, but execution remains a hurdle.

6. Financial and Liquidity Risk

• Risk: Although current liquidity is strong, continued negative operating cash flow is unsustainable in the long term. If the turnaround in 2026 is delayed, the company may need to raise additional capital.
• Impact: Further equity issuance would dilute existing shareholders. High interest rates globally could also increase the cost of servicing any remaining debt, although the company is actively reducing short-term debt.

Rating / Sector Outlook

Sector Outlook: From Consolidation to Recovery

The global photovoltaic sector is currently in a phase of painful consolidation. The excessive capacity built during the 2022-2023 boom has led to a supply glut, driving prices below cash cost for many producers. This "clearing" phase is necessary for the long-term health of the industry but is financially destructive in the short term.

Key Sector Dynamics:
1. Supply Side Clearing: We expect smaller, less efficient players to exit the market or go bankrupt in 2025-2026. This will gradually reduce supply overhang.
2. Demand Resilience: Global solar demand remains robust, driven by energy transition goals in Europe, the US, China, and emerging markets. Demand growth is expected to outpace GDP growth, providing a solid floor for volume.
3. Technology Premium: The market is increasingly bifurcated. Standard PERC/TOPCon products are becoming commodities with razor-thin margins, while high-efficiency technologies (xBC, HJT, Tandem) command premiums. Companies with technological leadership will survive and thrive.
4. Geographic Arbitrage: The ability to sell in non-China markets with higher margins is becoming a key survival trait. Trade barriers are inadvertently creating protected high-margin zones for companies with local presence or favorable trade agreements.

Outlook for 2026-2027:
We anticipate an inflection point in late 2025 or early 2026. As supply clears and demand continues to grow, prices should stabilize and begin to rise modestly. Margins will recover, first for those with cost advantages and technological premiums, and then for the broader industry. By 2027, the industry should return to a more rational competitive landscape with healthy returns on invested capital.

Company Rating: BUY (Maintained)

We maintain our BUY rating on Junda Shares (002865.SZ) for the following reasons:

1. Resilient Business Model: Despite industry headwinds, Junda has maintained shipment growth and successfully pivoted to higher-margin overseas markets. The 51% overseas revenue mix is a testament to its strategic agility.
2. Technological Alpha: Leadership in xBC and Perovskite tandem technologies provides a clear pathway to premium pricing and market share gains in the next cycle.
3. Financial Safety Net: Strong liquidity position (CNY 5.4 billion) and successful HK financing provide the runway needed to survive the trough and invest in future growth.
4. Attractive Valuation: Trading at ~1.6x P/B with a clear path to double-digit ROE by 2027 offers a favorable risk-reward profile for long-term investors. The market is currently pricing in prolonged distress, but our analysis suggests a stronger recovery potential.

Investment Horizon: Medium to Long Term (12-24 months). Investors should be prepared for volatility in the short term as quarterly results may continue to show losses until the industry turnaround is fully realized.

Investment View

Core Investment Logic

1. The "Overseas Alpha" Strategy is Working
Junda’s most compelling narrative is its successful decoupling from the domestic Chinese price war. By shifting >50% of sales to overseas markets like India and Turkey, the company is capturing a structural margin premium. This is not a temporary fix but a long-term strategic realignment. As trade barriers rise globally, companies with localized production (Turkey) and diversified sales channels will dominate. Junda is ahead of many peers in this regard. The Turkey project, coming online in late 2025/early 2026, will further cement this advantage, allowing Junda to serve the European neighborhood with tariff-advantaged products.

2. Technology as the Ultimate Hedge
In a commodity market, technology is the only way to escape the race to the bottom. Junda’s xBC cells, with their 1-1.5% efficiency advantage, are poised to become the product of choice for high-end residential and commercial applications where space and aesthetics matter. As the industry matures, the premium for efficiency will persist. Furthermore, the 32.08% tandem cell efficiency record is a "call option" on the future. It signals to the market that Junda is a serious player in the next generation of PV tech, attracting partnerships and talent.

3. Buying the Trough
Cyclical investing requires buying when headlines are negative and fundamentals are at their worst. Junda’s Q3 results, while showing a loss, also showed sequential improvement in gross margin and shipment volume. The market has largely priced in the bad news. The downside risk is limited by the company’s strong balance sheet (cash rich), while the upside potential is significant if the 2026 recovery materializes as predicted. The projected 2027 P/E of 9.23x is cheap for a company with Junda’s growth profile and technological standing.

Strategic Recommendations for Institutional Investors

For Long-Only Funds:
* Accumulate on Weakness: Use any further market dips driven by broader sector sentiment to build positions. The fundamental story of overseas diversification and tech leadership is intact.
* Monitor Key Catalysts: Watch for the commissioning of the Turkey plant (late 2025/early 2026) and any signs of price stabilization in the domestic Chinese market. These will be the triggers for re-rating.
* Hold Through Volatility: Expect quarterly earnings to remain volatile/negative in 4Q 2025 and 1Q 2026. Do not let short-term noise distract from the long-term turnaround thesis.

For Hedge Funds/Active Traders:
* Pair Trade: Consider going long Junda and short pure-play domestic PV cell manufacturers with no overseas exposure or technological edge. This captures the relative outperformance of Junda’s "Overseas + Tech" strategy versus the "Domestic Commodity" peers.
* Event-Driven: Monitor the Oman project negotiations. Any positive resolution or announcement regarding the equity structure could be a positive catalyst. Conversely, delays might offer shorting opportunities in the very short term, though the long-term trend remains up.

Conclusion

Junda Shares is navigating one of the most difficult periods in the history of the photovoltaic industry. However, it is doing so with a clear strategy, strong technology, and a robust balance sheet. The shift to overseas markets is already yielding results, and the technological pipeline ensures relevance in the future. While the short-term financials are ugly, they mask the underlying structural improvements in the business.

We believe the market is underestimating the speed and magnitude of the recovery in 2026-2027. Junda is well-positioned to emerge from this crisis as a stronger, more diversified, and technologically superior leader. For institutional investors with a medium-to-long-term horizon, the current valuation offers an attractive entry point to participate in the next phase of the global energy transition.

Final Verdict: The risks are real but manageable given the company’s liquidity. The rewards are asymmetric, offering significant upside as the industry normalizes. Maintain BUY.

Appendix: Detailed Financial Forecasts & Assumptions

(Included for transparency and modeling purposes)

Revenue Assumptions:
* 2025E: CNY 9,318 Million. Assumes average selling price remains depressed throughout the year, but volume reaches 30 GW. Overseas mix at ~50%.
* 2026E: CNY 14,627 Million. Assumes 56.97% growth driven by:
* Volume growth to ~40-45 GW (estimated).
* Modest price recovery as industry supply clears.
* Full year contribution from Turkey project.
* 2027E: CNY 19,215 Million. Assumes 31.37% growth driven by continued volume expansion and potential new product launches (xBC mass production).

Margin Assumptions:
* Gross Margin:
* 2025E: -0.25% (Reflecting full year pressure, slightly worse than 1Q-3Q actuals due to Q4 seasonality/competition).
* 2026E: 10.47% (Recovery driven by higher ASPs and better product mix).
* 2027E: 12.10% (Normalization to healthy industry levels).
* Net Margin:
* 2025E: -5.53%
* 2026E: 4.46%
* 2027E: 6.64%

Expense Assumptions:
* R&D: Maintained at high levels to support xBC and Perovskite development. Expected to grow in absolute terms but decline as a % of revenue as sales rebound.
* SG&A: Controlled tightly. Expected to grow slowly, leveraging operating scale.

Capital Expenditure:
* Heavy capex in 2025-2026 (CNY 3.6-3.7 billion annually) to fund Turkey, Oman (if proceeds), and domestic tech upgrades. This is funded by a mix of operating cash flow (post-recovery), debt, and equity financing.

Working Capital:
* Improvement expected in 2026 as pricing power returns and inventory turnover optimizes. 2025 remains challenging due to weak pricing and high inventory values relative to sales.

Disclaimer: This report is based on information available as of October 28, 2025, and data provided by Dongwu Securities Institute. All forecasts are subject to uncertainty and should be used as a guide rather than a guarantee. Investors should conduct their own due diligence.