There was a decline in the share price of Daqo New Energy Corp. (DQ) by -4.80% and were trading at a stock price of $53.78 in the current market. DQ stock volume stayed the same at 1.14 million shares, however, this was lower than the average daily volume of the past 50 days which was 3 million shares. Over the last 12 months, there has been a huge rise in shares of DQ by 160.16%, and the last week they have decreased by -12.22%. Shares of DQ have declined by -38.60% over the last three months and in the last six months, the stock’s value has decreased by -41.25%. The outstanding shares of Daqo Energy stand at 71.02 million and their current market value is $4.76 billion.
Brief introduction about Daqo New Energy Corp.
Along with its subsidiaries, Daqo New Energy Corp., formerly known as Mega Stand International Limited, sells and produces polysilicon to photovoltaic product manufacturers across China. The polysilicon goes through processing manufacturing. Conversion turns it into wafers, modules, ingots, and cells for solar power solutions. Daqo Energy also offers ready-to-use and packaged polysilicon that meets pulling crucible stacking, and solidification of products. Headquartered in Shanghai, China, Daqo Energy is the number one producer of high-purity polysilicon in the industry of solar PV globally. Daqo Energy originated in 2008 and is currently one of the lowest-cost producers of high-purity polysilicon in the world. Its manufacturing facility in Xinjiang, China has a huge production capacity of 70,000 metric tons of polysilicon.
Trends in the Polysilicon Industry can potentially hint at growth for DQ stock
During the time period of 2021-2026, the polysilicon market is expected to grow at an annual growth of over 5% globally. This is primarily due to an increase in the installation of solar photovoltaic installations. During this forecasted time period, the solar photovoltaic industry will expectedly dominate the market. An increase in consumption for countries like India and China will make Asia-Pacific is likely to dominate the market. Asia-pacific will expectedly become the fastest-growing market during this forecasted period.
According to the International Energy Agency (IEA), the polysilicon industry is one of the fastest-growing industries of the world. It accounts for two-thirds of the worldwide net power capacity.
By 2030, the share of global renewable energy will expectedly reach 30% as per IEA. These stats show growth potential in DQ stock in the long-term future. Even till the end of the first quarter of 2020, Daqo has been showing promising growth in revenue and liquidity. The installation costs have decreased all over the world. This in turn improves the economic competitiveness of solar photovoltaic. Furthermore, it will boost the overall demand for polysilicon in the years to come.