(Yicai Global) June 24 -- Downstream suppliers to China’s photovoltaic industry, such as furnace, glass and adhesive film makers, are becoming investment hotspots as the sector experiences great growth, according to Yicai Global research.

Chinese solar industry leaders have big capacity expansion plans as the country’s PV capacity expands by leaps and bounds. And this in turn is providing huge opportunities for companies such as Gaoce Technology, Jing Sheng Electrical, Risen Energy, Hengdian Group DMEGC Magnetics and HIUV New Materials that make the core equipment and essential components needed to make PV modules.

"PV glass and adhesive films are indispensable auxiliary materials of solar panels, and demand will certainly increase as the market share of Chinese solar panel makers grows,” a new energy industry analyst told Yicai Global. Adhesive film suppliers, for example, are expecting a big boost in their performance.

As solar wafers become bigger and thinner, manufacturers also have to upgrade their production lines, providing additional opportunities for equipment makers. "The making of large-size wafers requires larger furnaces,” the analyst said. With 210-millimeter wafers becoming increasingly popular in the market, wafer producers need to purchase bigger furnaces to replace their existing small-size equipment, he added.

For instance, Hangzhou-based Jing Sheng, a leading supplier of monocrystalline furnaces, received CNY22.2 billion (USD3.3 billion) worth of orders in the first quarter, of which 94 percent were from PV companies.

The country’s newly-added solar capacity more than doubled in May by 139.2 percent from the same period last year to 6.83 gigawatts, according to the latest data from the National Energy Administration. Over the five months ended May 31, it jumped 141.3 percent to 23.7 GW.

Editors: Tang Shihua, Kim Taylor