GCL-Poly Energy Holdings, the biggest maker of polysilicon and solar wafers, tumbled to a three-year low in Hong Kong trading following a ratings cut by an analyst.
The stock fell as much as 6.9 percent and closed at HK$1.23, down 6.1 percent to its lowest since May 2009. The benchmark Hang Seng Index dropped 0.8 percent in comparison.
The rating was cut to reduce from neutral by Zhang Yi, a Shanghai-based analyst at Phillip Securities (Hong Kong) Ltd. “The rebound in price is difficult in the short term so its revenue from major business may have been declining,” the analyst said in a note today.
Every part of the solar supply chain is suffering from oversupply and falling prices. The average spot price of polysilicon sank to a decade low of $21.92 a kilogram as of July 9, a 56 percent decline from a year ago, according to Bloomberg New Energy Finance data.
GCL-Poly, along with LDK Solar, Daqo New Energy and China Silicon, filed complaints that led the Ministry of Commerce to open an investigation last week on whether polysilicon imports from the US and South Korea were sold at a loss.
The result of the probe is “uncertain and can’t reverse investors’ negative speculation on the company’s earnings,” Peter Sheng, an analyst of Guotai Junan Securities HK, said by phone today.
