Before October 1, 2013, relevant government departments issued the "Notice on PV Generation Value-Added Tax Policy," which stipulated that from October 1, 2013, to December 31, 2015, a 50% value-added tax (VAT) would be applied to the sales of self-produced solar power products by taxpayers. This policy marked a shift in the taxation approach for the photovoltaic sector, aiming to support and encourage the industry's growth.
The implementation of such tax incentives is expected to boost profits for photovoltaic manufacturing companies, creating more investment opportunities for related stocks under supportive policies. According to analysts at Cinda Securities, the recent policy on photovoltaic electricity pricing exceeded expectations, which should benefit downstream applications and improve returns for developers. Galaxy Securities also highlighted that with technological advancements and a broader range of investors, the overall revenue of the photovoltaic industry is likely to grow further. In particular, the revenue distribution between the manufacturing and system installation sides is shifting back toward the manufacturing end, a trend that has been evolving since 2008. This shift represents a significant opportunity for the industry, as it moves toward a more balanced and profitable structure.
In fact, data shows that the 36 A-share listed solar energy companies collectively achieved a net profit of RMB 5.12 billion attributable to shareholders in the first half of 2013. This marks a significant improvement compared to a loss of RMB 3.6 billion in the same period of 2012, indicating a clear turnaround in the industry’s performance. The photovoltaic sector is showing strong signs of recovery, signaling a positive outlook for the future.
With the industry entering a recovery phase, many analysts maintain a “recommended†rating for the sector. Investors are advised to focus on leading companies in the solar power and monocrystalline silicon segments, especially those benefiting from domestic demand. Additionally, enterprises involved in polysilicon production, such as TBEA, may also present attractive investment opportunities.
Shenyin Wanguo noted that the photovoltaic industry has now emerged from its downturn and is experiencing steady quarterly improvements. This signals a promising path forward for the sector as it continues to stabilize and grow.
Outdoor Wall Cladding,Building Wall Wpc Panels,Decorative Materials Wall Panel,outdoor wpc wall cladding
Linyi Dongtai Decoration Materials Co., Ltd , https://www.dongtaiwood.com