• Daqo New Energy’s board has approved a share buyback program of up to US$100 million, to be completed by the end of 2026 and funded from existing cash reserves, following new policy developments and industry restructuring in China.
• This move, coupled with positive analyst reassessments, signals growing management confidence in the company’s financial health and the emergence of supportive industry trends.
• We will examine how the new share buyback program may influence Daqo New Energy's investment outlook and long-term positioning.

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Daqo New Energy Investment Narrative Recap

To be a shareholder in Daqo New Energy, you need confidence in both the stabilization of the global polysilicon sector and meaningful policy support from China, given the company’s exposure to industry overcapacity and recurring net losses. The board’s recent approval of a US$100 million share buyback program is a positive step, but it does not materially address the pressing risk of prolonged supply-demand imbalance, which remains the most critical short-term factor affecting performance.

Among the company’s recent announcements, the Q2 2025 earnings report stands out. With quarterly sales declining to US$75.19 million and a net loss of US$76.48 million, these results underline the strain from low utilization rates and pricing pressures, even as management signals optimism through shareholder returns and production guidance.

However, investors should also keep in mind that, despite these positive actions, the risk of persistent industry overcapacity is far from resolved and...

Daqo New Energy's narrative projects $2.4 billion revenue and $226.9 million earnings by 2028. This requires 58.5% yearly revenue growth and a $616.1 million increase in earnings from current earnings of -$389.2 million.

Uncover how Daqo New Energy's forecasts yield a $26.58 fair value, a 10% downside to its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community range from US$26.58 to US$465.05, with five contributors offering widely differing views. While some anticipate industry stabilization led by recent policy initiatives, you can see that market participants hold sharply contrasting opinions worth your attention.

Explore 5 other fair value estimates on Daqo New Energy - why the stock might be a potential multi-bagger!

Build Your Own Daqo New Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Daqo New Energy research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Daqo New Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Daqo New Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.