Daqo New Energy: A Chinese Solar Monopoly Launches $100M Buyback Plan

Daqo New Energy, a Chinese polysilicon producer and world's largest exporter, is launching a $100m stock buyback program, signaling confidence in its value. The company dominates the supply of polysilicon, a crucial raw material for solar panels, and its market capitalization of $1.7bn does not accurately reflect its position in the market. Insiders are buying the stock, and the buyback program is a vote of confidence in the company's future.

Daqo New Energy, a leading Chinese polysilicon producer and the world's largest exporter, has initiated a $100 million stock buyback program, indicating a vote of confidence in the company's future prospects. This strategic move, announced on August 30, 2025, comes at a time when the stock market is closely monitoring the company's market capitalization and valuation.

The buyback program, which represents approximately 10% of the company's market capitalization, is a significant signal from the management that they believe the stock is undervalued. The current market capitalization of $1.7 billion does not accurately reflect Daqo New Energy's dominance in the polysilicon market, where it holds a near-monopoly position [1]. The company's market share is substantial, and its influence on the global solar energy supply chain is considerable.

Insiders have taken notice of the undervalued stock, with institutional investors such as American Century Companies Inc. increasing their stakes. American Century Companies Inc. recently increased its holding by 4.7%, owning approximately 220,623 shares valued at about $3.995 million [2]. This institutional support underscores the belief that the stock is trading below its true value.

The company's stock price has been volatile, trading in a range between $12.40 and $30.85 over the past year. However, analysts are optimistic about the stock's potential. A consensus rating of "Buy" from analysts, with price targets ranging from $26.10 to $31.00, indicates a positive outlook for the stock [2].

The buyback program is also seen as a strategic move to boost the stock's price and attract more institutional investors. The company's management believes that the current low price of oil, which has been historically cheap, is keeping the attention and capital away from renewable energy sources like solar. However, with the potential for oil prices to rise and the cyclical nature of energy markets, the demand for renewable energy could increase, providing a catalyst for Daqo New Energy's stock to perform better.

In conclusion, Daqo New Energy's $100 million stock buyback program signals a strong vote of confidence from the management and insiders. The company's dominance in the polysilicon market, coupled with the potential for increased demand in renewable energy, makes it an attractive investment opportunity for those looking for undervalued stocks in the energy sector.

References:
[1] https://www.marketbeat.com/originals/daqo-new-energy-solar-monopoly-launches-100m-buyback/
[2] https://www.marketbeat.com/instant-alerts/filing-american-century-companies-inc-has-4-million-stock-position-in-daqo-new-energy-corp-dq-2025-08-30/