Tongwei Co Ltd Class A

600438: XSHG (CHN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	¥49.20	Plm	Trnrfgwft

Initiating on Three Chinese Solar Stocks: Zhonghuan Expensive; LONGi and Tongwei Are Fairly Valued

Cheng Wang

Jun 30, 2023

We initiate coverage on three Chinese solar companies, Zhonghuan Renewable Energy, the world’s largest solar wafer company by external shipments, LONGi Green Energy Technology, the world’s largest integrated solar company, and Tongwei, the world’s largest polysilicon and solar cell producer. We assign a no moat rating to all three due to overcapacity and intense competition in the solar industry. Our fair value estimates are CNY 25.70 for Zhonghuan, CNY 31.40 for LONGi, and CNY 35.90 for Tongwei.

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