(Yicai Global) June 9 -- After Morgan Stanley slashed Longi Green Energy Technology’s share price target, the world’s largest supplier of solar wafers and panels reportedly said that blowing out of proportion the research results of foreign-funded institutions is unnecessary.

“We shouldn’t hype this content, as there are many excellent analysts in China,” the person in charge of Longi’s board of director’s office said, according to China Securities News.

Morgan Stanley yesterday cut its target price for Longi’s stock [SHA: 601012] to CNY38 (USD5.33) from CNY58. Longi is a technical leader, but its shipments in the high-margin US market are low, and its earnings growth is expected to be slower than that of rival JA Solar Technology, the US financial services giant said.

Longi’s shares closed up 1 percent at CNY27.60 each today. The stock has plunged 35 percent since the start of the year amid falling polysilicon prices and has remained under CNY38 since April 20.

The industry believes that some links of the photovoltaic supply chain have reached overcapacity. Nonetheless, Longi announced a CNY12.5 billion (USD1.8 billion) expansion plan in the middle and lower streams of the supply chain on June 6.

The plan will improve the scale of Longi’s silicon rod and high-efficiency battery production capacity, optimize its capacity layout in the PV energy supply chain, make full use of its integrated competitive advantage, and improve profitability, it noted.

Some market participants see Longi’s expansion plan as focused on upstream products, where production capacity is limited.

Morgan Stanley also recently downgraded its outlook for Contemporary Amperex Technology and cut its share price target for the Chinese car battery giant on concerns that CATL will likely lose ground in a highly competitive market and its margins will be squeezed.

Editor: Futura Costaglione