Daqo New Energy Corp’s share price declined. (DQ) by -4.80% and were trading at a price of $ 53.78 in the current market. DQ’s share volume remained the same at 1.14 million shares, however, this was lower than the average daily volume for the past 50 days of 3 million shares. Over the past 12 months, there has been a huge increase in DQ shares of 160.16%, and last week they have fallen by -12.22%. DQ shares have fallen -38.60% in the past three months and over the past six months the share’s value has fallen by -41.25%. Daqo Energy’s outstanding shares are $ 71.02 million and their current market value is $ 4.76 billion.
Brief introduction to Daqo New Energy Corp.
With its subsidiaries, Daqo New Energy Corp., formerly known as Mega Stand International Limited, sells and produces polysilicon to PV manufacturers across China. Polysilicon goes through manufacturing processing. The conversion turns it into wafers, modules, ingots and cells for solar power solutions. Daqo Energy also offers ready-to-use, packaged polysilicon that responds to stacking of draft crucibles and solidification of products. Based in Shanghai, China, Daqo Energy is the world’s leading producer of high purity polysilicon in the solar photovoltaic industry. Daqo Energy was established in 2008 and is currently one of the cheapest high purity polysilicon producers in the world. Its manufacturing facility in Xinjiang, China has a huge production capacity of 70,000 metric tons of polysilicon.
Polysilicon industry trends may potentially portend growth in DQ stock
During the period 2021-2026, the the polysilicon market is expected grow to an annual growth of over 5% globally. This is mainly due to an increase in the installation of solar photovoltaic installations. During this expected period of time, the solar PV industry is likely to dominate the market. An increase in consumption for countries like India and China will make Asia Pacific likely to dominate the market. Asia-Pacific is expected to become the fastest growing market during this forecast period.
According to the International Energy Agency (IEA), the polysilicon industry is one of the fastest growing industries in the world. It represents two-thirds of the world’s net electricity capacity.
By 2030, the share of global renewable energies is expected to reach 30% according to the IEA. These statistics show a potential for growth of DQ stock in the long term future. Even until the end of the first quarter of 2020, Daqo has shown promise growth in income and cash. Installation costs have fallen all over the world. This in turn improves the economic competitiveness of solar PV. In addition, it will stimulate the overall demand for polysilicon in the years to come.