Photovoltaic Equipment Sector Update: Policy Tailwinds Accelerate Perovskite Commercialization; Equipment Suppliers Poised for Early Gains

Rating: Overweight (Maintained)
Date: November 12, 2025
Source: Dongwu Securities Research Institute

Executive Summary

The Chinese Ministry of Industry and Information Technology (MIIT) has issued new directives to accelerate the systematic layout and high-level construction of manufacturing pilot platforms, explicitly highlighting perovskite solar cells and tandem photovoltaic technologies as key focus areas within the energy electronics sector. This policy intervention coincides with significant milestones in industrial scaling, marking a pivotal transition from laboratory R&D to gigawatt (GW)-scale commercial production.

We maintain an Overweight rating on the photovoltaic equipment sector. The industry is currently in the critical "0-to-1" phase of perovskite industrialization. Given the high capital intensity of initial production lines—where equipment value accounts for a substantial portion of total investment—equipment manufacturers are positioned to be the primary beneficiaries of this early-stage capex cycle. We recommend focusing on leading equipment providers with integrated line capabilities and core process technologies.

Key Takeaways

1. Policy Catalyst: MIIT Prioritizes Perovskite Pilot Platforms

On November 11, the MIIT released the "Notice on Further Accelerating the Systematic Layout and High-Level Construction of Manufacturing Pilot Platforms" and the "Key Points for the Construction of Manufacturing Pilot Platforms (2025 Edition)."
* Strategic Focus: The documents explicitly identify advanced PV technologies, specifically perovskite and tandem cells, as priority directions for pilot platform construction.
* Implication: This top-down support reduces regulatory uncertainty and likely facilitates faster approval processes, funding access, and standardization for perovskite projects, thereby de-risking the scale-up phase for manufacturers.

2. Industrialization Acceleration: GW-Scale Lines Coming Online

The sector is witnessing a rapid convergence of technical breakthroughs and capacity expansion, moving decisively beyond the pilot stage.

• Technical Validation: The certification of large-area modules by Microquanta and the cost/efficiency breakthroughs by GCL demonstrate that perovskite technology is resolving key hurdles related to stability and manufacturability at scale.

3. Economic Logic: Equipment Makers Capture Early Value

In the nascent stage of perovskite industrialization, the value chain is heavily skewed towards equipment suppliers due to the lack of standardized, off-the-shelf solutions and the need for customized, high-precision manufacturing tools.

• High Equipment Value Density:
  • Single GW Line Value: Exceeds RMB 1 billion.
  • 100MW Pilot Line Cost: Quoted between RMB 300–400 million.
• Technological Complexity: Perovskite production requires a complex mix of vacuum deposition, coating, laser scribing, and encapsulation technologies. This creates high barriers to entry and strengthens the pricing power of established equipment vendors.

4. Competitive Landscape: Integrated Solutions Lead

Leading equipment manufacturers are evolving from single-process providers to full-line integrators.

• Leading Pan-Semiconductor Equipment Player: Has proposed a comprehensive solution for perovskite/HJT tandem cell lines. Key innovations include:
  • Customizable capacity design.
  • Core vacuum technology integration.
  • Advanced processes: Pre-printing, inkjet printing, EAP INLINE layout, and photon sintering.
• JieJia WeiChuang (SC Solar): Recently won a bid for a complete perovskite battery line dedicated to R&D and production of $300mm \times 300mm$ cells. The scope includes:
  • Glass cleaning.
  • Laser scribing (P1-P4) and edge isolation.
  • Perovskite coating, VCD drying/crystallization, and annealing.
  • Vacuum deposition (PVD, low/high-temperature evaporation) and Atomic Layer Deposition (ALD).

Investment View

Core Investment Logic

1. First-Mover Advantage in Capex Cycle: As the industry transitions from MW-scale pilots to GW-scale factories, the immediate demand is for capital equipment. Unlike downstream module makers who face yield and market acceptance risks, equipment suppliers recognize revenue upon delivery and installation, offering earlier visibility into earnings growth.
2. Technology Moat: The complexity of perovskite manufacturing (especially tandem structures) favors companies with deep expertise in vacuum equipment, laser processing, and coating technologies. Companies that can offer "turnkey" whole-line solutions will capture larger order books and higher margins.
3. Policy-Driven Visibility: The MIIT’s explicit endorsement provides a clearer roadmap for industry standards, encouraging traditional PV giants and cross-industry entrants (like BOE and CATL) to commit capital with greater confidence.

Recommended Targets

We recommend a barbell strategy focusing on proven leaders and specialized niche players:

• Top Picks:

  • Leading Pan-Semiconductor Equipment Company: Beneficiary of high-value tandem line orders; strong technological integration capabilities.
  • JieJia WeiChuang (SC Solar): Demonstrated ability to secure whole-line bids; comprehensive portfolio covering coating, vacuum, and laser processes.

• Watch List (Specialized Process Equipment):

  • Manst (Mannstein): Coating/slurry equipment.
  • Jingshan Light Machine: Module assembly and automation.
  • Han’s Laser, DR Laser, Delong Laser, JPT: Laser scribing and patterning equipment (critical for cell interconnection).
  • OLED Material Providers (e.g., Aolaidi): Potential overlap in organic material supply chains.

Risks / Headwinds

While the outlook is positive, investors should monitor the following risks:

1. R&D and Technical Risks: Perovskite technology, particularly regarding long-term stability and efficiency retention in large-area modules, still faces technical challenges. Any significant setbacks in conversion efficiency or degradation rates could delay mass adoption.
2. Downstream Expansion Delays: The transition from pilot to GW-scale is capital-intensive. If downstream manufacturers face financing constraints or if the return on investment (ROI) calculations become less favorable due to falling silicon prices, capex plans may be postponed.
3. Equipment Yield Rates: Early-stage equipment may suffer from lower-than-expected yield rates during ramp-up, potentially impacting the recognition of revenue and customer satisfaction.
4. Competition Intensification: As the market potential becomes clear, new entrants from the semiconductor and display equipment sectors may intensify competition, potentially compressing margins for existing PV equipment suppliers.

Rating / Sector Outlook

Sector Rating: Overweight (Maintained)

The photovoltaic equipment sector is entering a new growth cycle driven by technological iteration rather than just capacity expansion. The specific niche of perovskite and tandem cell equipment offers superior growth potential compared to traditional crystalline silicon equipment in the near term.

• Short-Term (6-12 Months): Driven by the commissioning of pilot lines and the first wave of GW-scale orders. Equipment revenue recognition will lead financial performance.
• Medium-Term (1-3 Years): As yields stabilize and costs decrease, the focus will shift to efficiency gains and cost reduction. Companies with strong R&D pipelines for next-gen processes (e.g., all-perovskite tandems) will maintain leadership.

Conclusion: The convergence of policy support from the MIIT and tangible industrial progress from key players like GCL and Microquanta validates the acceleration of the perovskite timeline. We advise institutional investors to overweight equipment suppliers with proven whole-line integration capabilities and strong exposure to the perovskite/tandem value chain.

Disclaimer: This report is based on information available as of November 12, 2025. It does not constitute an offer to sell or a solicitation of an offer to buy any securities. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions.