Tech-EVA: A Technology-Adjusted Valuation Model for the Solar Photovoltaic Industry — A Comparative Case Study of LONGi Green Energy and Liansheng Technology

Abstract

This study develops a Technology-Adjusted Economic Value Added model, named Tech-EVA, to better evaluate solar photovoltaic enterprises under rapid technological iteration and industry volatility. Traditional valuation methods often fail to capture the value of R&D accumulation, technology-route uncertainty, and the financial impact of key technical parameters. To address this gap, the Tech-EVA framework integrates three mechanisms: the Technology-Economic Conversion coefficient, which links technical performance to economic profit; WACC-Tech, which adjusts capital cost for technology-specific risk; and OptionTech, which captures the strategic option value embedded in future technology pathways. Using LONGi Green Energy and Liansheng Technology as comparative cases, this study applies the model to two different enterprise types within the PV industry: a mature industry leader following the BC technology route and an early-stage innovator committed to HJT technology. The results show that LONGi’s value is mainly driven by operational value, scale advantages, and relatively mature technological competitiveness, while Liansheng’s value depends more heavily on technology option value and future breakthrough potential. Under the Tech-EVA valuation, LONGi reaches an estimated per-share value of RMB 28.95, while Liansheng reaches RMB 16.70, both higher than their year-end 2024 market prices. The comparative results suggest that the Tech-EVA model can make technology value more visible and measurable in PV enterprise valuation. For mature firms, the model highlights the role of stable technology leadership and lower technology risk. For early-stage firms, it better reflects the asymmetric payoff structure of breakthrough technologies, where downside risk is limited but upside potential can be substantial. Overall, this study provides a more transparent and industry-specific valuation framework for investors, enterprise managers, analysts, and policymakers seeking to assess PV firms in a period of technological transition and market adjustment.