Junda Co. Becomes First A+H Listed Solar Company, Seizing Historic Opportunity for Growth and Valuation Reassessment

Junda Co., Ltd has become the first A+H solar company, marking a historic opportunity for accelerated development and value reassessment! This article discusses the implications of this milestone and the future prospects for Junda as it embarks on a dual listing journey.

It is generally considered that H-shares (Hong Kong capital market) have less liquidity compared to A-shares. However, with the ongoing enhancement of connectivity between Hong Kong and mainland capital markets, H-share liquidity has significantly improved. Coupled with Hong Kong’s unique position, H-shares remain a crucial bridge for mainland companies seeking an international capital operation platform. The recent policy introduced by the China Securities Regulatory Commission in 2024, which supports leading mainland enterprises to list in Hong Kong, along with new regulations from the Hong Kong Stock Exchange that lower the A+H share threshold (with a minimum market capitalization requirement of HKD 3 billion), has prompted many ambitious companies to pursue dual listings.

The most notable example is CATL, which submitted its prospectus to the Hong Kong Stock Exchange in February this year and is set to become the first lithium battery company listed on both A and H shares. Similarly, Junda Co., Ltd. submitted its IPO application even earlier than CATL, and has also received approval to become the first A+H dual listed solar company.

The solar industry continues to grapple with a phase of overcapacity, leading to a mix of pessimism and optimism among stakeholders. However, there are also determined individuals who believe in the industry’s potential and possess the conviction, insight, and execution power to navigate through these challenging times. They demonstrate unique survival wisdom at the bottom of the industry cycle, proving their capability to thrive despite the fluctuations in the solar market.

What Does It Mean to Be the First A+H Solar Company?

On April 28, 2025, Junda Co., Ltd. announced that it expects to be listed on the Hong Kong Stock Exchange on May 8, 2025, officially becoming the first A+H listed solar company. This milestone signifies a major breakthrough in the company’s strategy to establish an international capital operation platform and represents a historic opportunity for enhanced operational efficiency and quality.

In the context of declining prices across the solar industry, with the entire sector facing cash flow challenges and tightening financing conditions in mainland China, competition has increasingly shifted to capital strength. For both integrated giants and specialized manufacturers, financing channels are not only a determinant of competitive success but also critical for survival. The importance of H-shares to the current solar industry cannot be overstated. By being the first A+H dual listed solar company, Junda Co., Ltd. can access capital support from both markets, further optimize its capital structure, enhance its financial strength, and improve its competitive edge, thereby securing a ticket to navigate this solar cycle successfully.

Moreover, as an international financial center, Hong Kong’s capital market offers more objective valuations for companies, reflecting their true value more accurately. Listing in Hong Kong not only provides direct capital support but also enhances the company’s valuation and market influence, attracting more strategic investors and partners, which is vital for long-term growth. This is particularly relevant for solar companies today, as many mainland investors view the sector as a poor investment following significant market declines. However, this perspective overlooks the global necessity for energy transition and the fact that solar power currently accounts for just over 6% of global energy production, indicating that solar remains a high-quality asset with substantial long-term growth potential.

A New Opportunity Amid Tariff Challenges

The recent tariff war initiated by the United States has posed considerable challenges and uncertainties for the global trade system, significantly impacting the solar industry. However, the effects vary greatly among companies depending on their position in the supply chain, scale, and overseas capacity layout. The current tariffs target nearly all non-U.S. solar cell production regions, particularly affecting the Southeast Asian countries that previously served as hubs for Chinese solar products.

Recent analyses by Guojin Securities have shown that under equal tariffs, the cost curve for solar cell production will shift significantly. For instance, battery production in Indonesia and Laos, which are not subject to double anti-dumping tariffs, will benefit, while capacities in Malaysia and other Southeast Asian countries will face heightened costs. Notably, U.S. domestic components combined with battery production in Oman will emerge as one of the lowest-cost options for supplying the U.S. market, with profit margins exceeding 7 cents/W.

This new tariff landscape highlights the rarity of Junda’s Omani production capacity as a low-tax option for the U.S. market, enhancing its global competitive advantage and overall profitability. As the first phase of the 5GW Oman project is set to commence commercial production in 2026, Junda has already signed a memorandum of understanding with a leading North American solar component company to explore potential cooperation, with plans for the latter to purchase 1 to 2GW of solar cells from Junda’s Omani facility by 2025.

Value Reassessment for Specialized Battery Manufacturers

In recent years, the solar industry’s growth has seen major players leaning towards integrated development, leading to a perception that independent battery manufacturers hold a marginal position. However, the reality is that specialization is likely to be the long-term foundation of the solar sector. As financing conditions tighten, many integrated giants have halted their integration processes, creating a historical opportunity for market revaluation of specialized solar battery manufacturers.

This trend is already emerging, with significant capacity developments in countries such as the U.S., Turkey, and India. Data indicates that the export growth rate of solar cells from China has outpaced that of components, highlighting a rapid globalization of component packaging capacity. Therefore, in the context of solar re-globalization, the importance of the solar cell segment continues to rise, potentially reshaping industry dynamics and the value of leading suppliers.

Junda Co., Ltd: A Comparison to CATL in the Lithium Battery Sector

When comparing the performance of Junda Co., Ltd. in the solar industry to that of CATL in the lithium battery sector, it becomes clear that the debate over specialization versus integration in solar mirrors misconceptions in other sectors. Prior to the recent tariff battles, CATL, as a specialized lithium battery leader, consistently enjoyed higher market valuations than its integrated counterpart, BYD. The potential for normalized trade relations signals that CATL’s valuation could further exceed BYD’s in the future.

In the solar sector, Junda Co., Ltd. is akin to CATL, holding a similar position in the industry chain and mastering core technological segments. Both companies demonstrate foresight and strategic vision, with Junda leading in the N-type TOPCon technology. The innovative MoNo2 series N-type TOPCon battery is set to enhance production efficiency significantly by 2024, further distinguishing Junda from its competitors.

Why Junda Co., Ltd. Deserves Attention

Having closely followed Junda Co., Ltd. for several years, it is evident that this company excels in technology, strategic insight, and execution. During the P-type era, Junda maintained a strong global presence, and with its commitment to TOPCon technology in the N-type era, it has established a first-mover advantage.

Notably, Junda’s execution capabilities have been remarkable, particularly regarding its international expansion. Following a period of minimal overseas income, the company significantly increased its overseas sales from 4.69% in 2023 to 23.85% in 2024, and by the first quarter of 2025, this figure surged to 58%. The company has established a strong foothold in major overseas markets, including India, Turkey, and Europe, positioning itself favorably for future growth, especially with its developments in Oman.

In a rapidly evolving solar industry, where technological iterations occur frequently, Junda’s robust execution and commitment to innovation will likely enable the company to navigate through cycles effectively and continue to thrive.