JA Solar Technology Co Ltd

The solar equipment sector has recently bottomed out and rebounded, with leaders such as LONGi Green Energy, JinkoSolar, and Tongwei shares bouncing back. However, five giants together project combined net profit attributable to the parent company for the first half of 2026 at a loss of 13.78 billion to 15.76 billion yuan. Since July, three mandatory national standards for the solar sector have been released, covering key links across the entire industrial chain including polysilicon, wafers, modules, and inverters. Set to take effect on January 1, 2027, they will accelerate the elimination of outdated capacity. Subsequently, the group standard General Principles for Cost Accounting Models in the Solar Industry was introduced, and the State Administration for Market Regulation went to Yancheng to conduct price compliance guidance, steering the industry from competing on price to competing on value. Tian Lihui, a finance professor at Nankai University, believes that administrative force correcting cutthroat competition combined with spot prices bottoming out creates a resonance between a policy bottom and a market bottom, but digesting the supply-demand gap still requires patience in market clearing. A research report from Soochow Securities projects global new solar installations at 547 gigawatts in 2026, down 11 percent year-on-year, with a return to growth expected in 2027, and notes that the overcapacity situation persists while strong energy efficiency standards will accelerate the exit of backward capacity. Leading companies are actively expanding their second curve. Trina Solar's energy storage and distributed systems business is contributing positive profits, and LONGi Green Energy is advancing its BC technology and integrated solar-storage layout. Experts advise investors to focus on leaders with technological barriers and solid cash flow, while being wary of the risk that capacity clearing falls short of expectations.