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Daqo New Energy: Navigating the Polysilicon Market Downturn

By Strive Masiyiwa

Daqo New Energy (DQ) faces ongoing challenges from polysilicon overcapacity and delayed price recovery, leading to a downgrade to 'Hold'. The company reported a significant Q1 revenue drop and net loss, pausing sales to avoid losses. Despite this, DQ maintains a strong balance sheet with substantial liquidity and no debt, positioning it for long-term survival through the downturn. The industry's slow consolidation requires patience, with the stock currently around $15/share.

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