China Galaxy Securities has issued a research report, highlighting that the momentum behind anti-involution policies remains steady, with only specific adjustments being made to their implementation. Thanks to the declining costs of commercial space launches and the remarkable progress in battery technology, the space photovoltaic sector is poised to gradually transition into commercialization over the next 10 to 15 years.

The report advises investors to focus on four distinct categories of companies: Firstly, those with a robust technical foundation in space photovoltaics; Secondly, leading firms that excel in emerging technology domains such as Back Contact (BC) and copper paste; Thirdly, companies operating within the silicon material segment, which stand to gain the most from anti-involution policies; Fourthly, entities that maintain a degree of independence from the main industry chain and prioritize the integration of photovoltaic and energy storage systems.

In early 2026, the State Administration for Market Regulation (SAMR) intervened in the photovoltaic industry, suspending self-regulatory measures related to a silicon material integration platform out of concerns over potential monopolistic practices. The involved parties were required to submit rectification plans. However, this intervention did not completely undermine the concept of compliant self-regulation. Practices such as maintaining prices above cost levels and safeguarding intellectual property rights remain permissible.

Across the industrial chain, prices are on an upward trajectory, signaling a definitive trend towards industry recovery. It is anticipated that once terminal demand picks up in the first quarter of 2026, profits will gradually rebound throughout the industrial chain, paving the way for the industry to achieve profitability for the entire year.