In-depth Analysis of Arctech Solar (688408) Strong Performance: Driven by Order Support and Industry Inflection Point

Arctech Solar (688408), a leading PV tracking system company on the STAR Market, recently entered the strong stock pool [0]. Its main business covers R&D and sales of products such as PV tracking systems, fixed mounting systems, and flexible mounting systems [0]. In 2025, it won the Saudi PIF6 AFIF 4.2GW project, setting a new record for the largest single cooperation globally [0]. Overseas market expansion has achieved remarkable results (ranked first in tracking system market share in the Asia-Pacific region [0]). The in-hand orders reach 7.3 billion yuan [3], and contract liabilities increased month-on-month [0], providing strong support for future performance. Financially, in the first half of 2025, revenue was 4.037 billion yuan (YoY +19.55%), but net profit attributable to parent company was 158 million yuan (YoY -31.79%) [0]; net profit in the first three quarters increased by 45% [0], showing signs of profit inflection point. At the industry level, in Q3 2025, the PV industry showed anti-involution signals, with narrowed losses [5], continuous policy support for new energy development [7], strong demand for energy storage lithium batteries [4], driving the industry to bottom out and recover [0].

1. Order and Industry Resonance
   : 7.3 billion yuan in-hand orders [3] combined with the industry inflection point driven by PV anti-involution [5], providing dual support for the company’s valuation repair.
2. Overseas Market Breakthrough
   : Saudi large order and doubled overseas revenue [0], first in Asia-Pacific market share, opening up long-term growth space.
3. Profit Inflection Point Emerging
   : Net profit in the first three quarters increased by 45% [0]; although short-term profit is under pressure, institutions predict a significant CAGR of net profit over the next three years.

• Short-term profit pressure: Net profit in H1 2025 decreased by 31.79% YoY [0], which may affect short-term stock price performance.
• Industry competition: The PV mounting system field is highly competitive; continuous technological innovation is needed to maintain a leading position [0].

• Industry recovery: The PV anti-involution drives the industry inflection point [5]; policies continue to support the increase of new energy installation ratio to 40% [0], and demand is expected to grow sustainably.
• Overseas expansion: The Saudi large order and remarkable results in overseas market expansion [0] diversify domestic market risks.
• Energy storage boom: Strong demand for energy storage lithium batteries, with strong expectations of supply-demand tension and price increases [4], related businesses may benefit.

Arctech Solar (688408), as a leading PV mounting system company, has performed strongly relying on sufficient orders, overseas breakthroughs, and industry recovery trends. Although short-term net profit is under pressure, the long-term growth logic is clear. Investors need to pay attention to the progress of industry recovery and order implementation, balancing short-term fluctuations and long-term value.