DQ Stock Recent News

DQ is currently trading at a large discount to its intrinsic value. Relative to its peers DQ is severely underpriced. DQ's revenue growth has been impressive since 2018 and even if profits fall DQ will be severely undervalued.

Daqo New Energy stock has been under pressure due to falling polysilicon prices, but the company's strong balance sheet and high-profit margins suggest it is well-positioned for recovery. Despite a drop in polysilicon prices, the Company's Q2 earnings are expected to remain highly profitable, with the potential for significant revenue and earnings growth. DQ's strong balance sheet, high free cash flow yield, and ongoing share buyback program make it a strong buy despite current market conditions.

Daqo New Energy's market cap is $1 billion lower than its outstanding net cash position, despite strong profitability and expansion plans. Despite a 45% YoY decrease in revenue in Q1 2022 due to soft demand and limited supply, the company expects Q2 revenue to bounce back and remain flat YoY, with an increase in polysilicon production. Despite high concentration and political risks, the company's strong financial performance and low valuation, together with favorable secular shifts, make it a compelling investment opportunity.

Polysilicon prices are on a downward trend due to a shortage in quartz supply to manufacture silicon wafers. Daqo New Energy's business remains strong, with solid EBITDA margins of 69% in Q1.

Shares of Daqo New Energy NYSE: DQ closed Thursday's trading session by 3.75% after reporting its first quarterly earnings for 2023, along with filing its official annual report for 2022 via form 20-F with the SEC. Now that more institutional money managers and investors like Fidelity and Templeton are increasing their positions in Daqo, investors are beginning to take notice and deep dive into the business fundamentals and the massive growth it has displayed over the years.

Warren Buffet said, "The market is a system of transferring money from the impatient to the patient." This saying and the underlying implications could not go better with what is going on with this latest quarterly announcement.

Daqo New Energy (DQ) is likely to have gained from healthy demand for polysilicon, higher prices and actions to improve efficiency in Q4.

Daqo New Energy has neared 52 week lows in January admit falling polysilicon prices, yet all of this was to be expected and momentum is building up for a rally. Higher polysilicon prices sustainable till at least Q3 2023, before more production comes online.

SHANGHAI , Feb. 21, 2023 /PRNewswire/ -- Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy" or the "Company"), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced it plans to release its unaudited financial results for the fourth quarter and fiscal year of 2022 ended December 31, 2022 before U.S. markets open on Tuesday, February 28, 2023. The Company has scheduled a conference call to discuss the results at 8:00 AM U.S. Eastern Time on February 28, 2023 (9:00 PM Beijing / Hong Kong time on the same day).

Daqo New Energy Corp. is a Chinese manufacturing company that produces polysilicon on behalf of clients in the photovoltaic solar power industry. Daqo is in the process of expanding its annual production capacity to 305,000 metric tons of polysilicon by the end of 2023, a nearly 50% increase from current levels.