Daqo is a distressed, cash-rich polysilicon survivor trading at a deep liquidation-style discount, offering highly asymmetric upside if China’s solar supply glut normalizes.
Overview
Daqo New Energy is a major Chinese polysilicon producer supplying upstream solar PV manufacturers, with virtually all revenue tied to high-purity polysilicon sales. Its competitive strength is ultra-low-cost production and a growing mix of premium N-type polysilicon, now over 70% of output. The company is strategically important to solar supply chains but deeply cyclical, highly exposed to Chinese domestic demand, and currently pressured by severe industry overcapacity, collapsing selling prices, and geopolitical restrictions tied to its Xinjiang operations.