Daqo New Energy Corp. (NYSE: DQ) has revealed on Tuesday that it has entered into a three-year agreement with Zhonghuan Semiconductor. The agreement is a supply agreement of three years. As per the agreement, Daqo New Energy will supply Zhonghuan with high-purity mono-grade polysilicon in a total amount of 41,000 MT over three years from 2021 to 2023.
Both the parties have disclosed that the actual prices will be confirmed monthly with mutual talks and by considering the market conditions. Under the terms of the supply agreement, Zhonghuan will be liable to give the advance payment to Daqo Energy.
Daqo New Energy Corp. (NYSE: DQ) last closed at $110.75, in a 52-week range of $8.32 to $130.33. Daqo New Energy Corp. stock declined 5.71% as it lost -6.71 at the time of writing on Tuesday. The most recent rating by Goldman, on December 8, 2020, is at a Buy with a price target of $62. DQ has a current ratio of 0.50 and it has a Gross Margin of 29.20. The ROA, ROI, and ROE of DQ are 6.50%, 4.00%, and 12.60%, respectively.
CEO of Daqo stated that the firm is excited to join with Zhonghuan through the supply agreement of the firm. CEO disclosed that the firm is striving to grow its capability to fulfill the future demands of high-purity polysilicon. On the other hand, the CEO of Zhonghuan stated that the firm has the same values as Daqo and is excited the join the firm which has the same vision as us.