JPMorgan initiates GCL Technology stock with Overweight rating on cost leadership

Published 12/09/2025, 14:18
JPMorgan initiates GCL Technology stock with Overweight rating on cost leadership

Investing.com - JPMorgan has initiated coverage on GCL Technology Holdings (HK:3800) (OTC:GCPEF) with an Overweight rating and a price target of HK$1.80, representing a potential 42% upside.

The investment bank identifies GCL Tech as a technology disruptor in the polysilicon industry, noting that its proprietary fluidized bed reactor (FBR) technology has positioned the company as the world’s lowest-cost producer.

GCL Tech has significantly expanded its market share from approximately 4% in 2021 to around 20% in 2025, despite currently trading below book value due to the industry down-cycle.

JPMorgan forecasts a substantial financial turnaround for the company, projecting EBITDA to improve from a loss of 1.4 billion yuan in fiscal year 2024 to 9 billion yuan by fiscal year 2027, with a free cash flow to firm yield exceeding 15%.

The bank also highlights GCL Tech’s low carbon footprint and energy-efficient production process as potential long-term value drivers, suggesting the company may benefit from carbon trading opportunities and higher production quotas compared to competitors.

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