Core Viewpoint - The photovoltaic glass industry is facing significant challenges due to oversupply and declining prices, prompting major manufacturers to collectively reduce production by 30% to address supply-demand imbalances [1][2]. Industry Overview - The photovoltaic glass sector is experiencing a continuous increase in production capacity, but demand is weak due to reduced component orders, leading to inventory accumulation [2]. - The average net profit for the photovoltaic glass industry has dropped to a historical low of negative 362 yuan per ton, indicating severe profitability issues [1]. Production Adjustments - Major photovoltaic glass manufacturers have decided to implement a collective production cut of 30% to improve the supply-demand balance, with expectations that this adjustment will take time to stabilize the industry [1][2]. - Some companies, such as 福莱特 and 旗滨集团, have indicated that they are currently operating normally and have not yet received formal reduction notices, suggesting variability in production responses among firms [2]. Future Projections - Analysts predict that the photovoltaic industry may see a significant reduction in production in the second half of the year, with potential cuts of 10% to 15% expected, and daily melting capacity could decrease to around 90,000 tons by year-end [3]. - The industry is anticipated to improve by 2025, driven by supportive policies from both supply and demand sides [3]. Related Companies - 凯盛新能 is investing approximately 1.399 billion yuan in a new project to build a 2000t/d photovoltaic component ultra-thin packaging material production line [4]. - 信义光能 is expected to benefit from potential supply-side reforms in the solar energy sector, particularly regarding polysilicon pricing [4]. - 福莱特玻璃 has had its earnings forecasts downgraded by 15%, 10%, and 9% for 2025-2027 due to unexpected production from second and third-tier companies, but is still expected to see significant quarterly earnings increases due to rising product prices [5][6].

Core Viewpoint - The photovoltaic glass industry is undergoing a significant reduction in production, with major companies planning to cut output by approximately 30% to address supply-demand imbalances and improve market conditions [2][6]. Industry Overview - The photovoltaic glass industry is facing challenges, with a total reduction of 31,091 tons per day since July, achieving a reduction rate of about 26%, nearing the target of 30% [3]. - As of June, domestic supply of photovoltaic glass was approximately 54GW, with demand around 49-50GW, resulting in a monthly surplus of about 8-9GW, equating to a glass surplus of 350,000-400,000 tons [3]. - Current inventory levels are high, with stock estimated at 31-32 days, indicating a significant oversupply in the market [3]. Price Dynamics - The price of photovoltaic glass has dropped over 70% from its peak of 40 yuan per square meter in 2020, leading to financial strain on many companies [4]. - The market has seen continuous price declines since June, with some prices falling below 11 yuan per square meter, causing many companies to struggle to cover costs [3][4]. Company Responses - Major companies are adapting to the market conditions by either reducing production or focusing on long-term customer relationships rather than engaging in price wars [4][7]. - Companies like 福莱特 and 信义光能 hold over 50% of the market share, with 福莱特 reporting a revenue of 18.683 billion yuan in 2024, down 13.2% year-on-year, and a net profit decline of 63.52% [4]. - 亚玛顿 is planning to invest in a new production line in the UAE to leverage local resources and enhance its competitive edge in the photovoltaic glass sector [6][7]. Future Outlook - The anticipated production cuts are expected to stabilize prices and improve the supply-demand balance in the photovoltaic glass market [7]. - The industry is projected to gradually move towards a healthier and more sustainable development trajectory as supply conditions improve and relevant policies are implemented [7].

经历抢装潮短期提振后，光伏玻璃再次进入价格下行区间，头部企业或将发起新一轮联合减产 以稳定市场价格。财联社记者从业内人士获悉，由于目前需求低迷及持续亏损情况下，部分光 伏玻璃企业采取减产或者冷修工作，整体产能呈现下降趋势。 多家光伏玻璃生产企业人士今日对财联社记者表示， 尚不能确定具体减产比例安排。 福莱特 证券部工作人员称， 目前公司生产经营正常。 每家企业生产经营情况不同，去年下半年起已 经开始对一些老旧窑炉进行检修，会持续调整公司在生产端的情况。 据市场消息称， 多数玻璃企业计划7月开始减产改善供应端，减产规模预计将达到30％。 不 过，也有企业人士对财联社记者称， 当前产能持续出清趋势不变，但量值难以达到30%水 平，预计在15%～20%之间。 该分析同时强调，供应端其实6月已经开始进行减产操作，统计6月国内共有3850吨/天产能 开始放水或焖炉，此外新增3020吨/天产能堵口，近日国内再度新增一座650吨/天窑炉减 产，供应量下降速度较快。 不过，对于具体减产比例，多家企业未作正式回应， 因此实际减产情况还需观望。隆众资讯 分析师高玲对财联社记者表示，目前光伏玻璃的行业总产能是13万吨左右，但市场对 ...

Investment Rating - The report assigns a "Hold" rating to the company with a target price of HKD 3.06 per share, indicating a potential upside of 19% from the current price of HKD 2.57 [5][10]. Core Insights - Weak terminal demand is putting pressure on photovoltaic glass prices, which have declined significantly in recent weeks. The average price for 2.0mm photovoltaic glass fell from HKD 13-13.5 per square meter to below HKD 12, while 3.2mm glass prices dropped from HKD 22-22.5 to below HKD 21. As of early June, inventory days reached 29.72, indicating substantial inventory pressure. The industry's gross margin has hit a record low of approximately -9.47% due to multiple factors including the end of the 430/531 rush, declining demand, and inventory pressure [2][7][8]. - The company plans to increase its nominal capacity to 32,200 tons per day by the end of 2024, with actual production capacity at 23,200 tons per day. However, the planned addition of 4,000 tons in 2025 may be delayed due to current market conditions, which could pressure profitability in 2025. The expectation is for supply-demand improvement and a return to rational pricing in 2025 [3][8]. - The company intends to issue a REIT for its solar power plants, which will help improve cash flow by locking in returns from high-subsidy projects. This REIT model will also mitigate future risks associated with electricity price fluctuations [4][9]. Summary by Sections Financial Performance - Revenue is projected to decline from RMB 24,164 million in FY2023 to RMB 21,921 million in FY2024, before recovering to RMB 22,702 million in FY2025. The net profit attributable to shareholders is expected to drop sharply from RMB 3,843 million in FY2023 to RMB 1,008 million in FY2024, before rebounding to RMB 2,101 million in FY2025 [6][14]. - The basic earnings per share are forecasted to decrease from 43.17 cents in FY2023 to 11.27 cents in FY2024, then increase to 23.15 cents in FY2025. The price-to-earnings ratio at the current price of HKD 2.57 is estimated at 20.9 for FY2024 and 10.2 for FY2025 [6][14]. Market Position - The company is positioned as a leading player in the photovoltaic glass industry, benefiting from supply chain management, economies of scale, and technological advantages. This positions the company to further differentiate its profitability from second and third-tier competitors [7][8].

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The REITs market is expected to continue to provide good investment opportunities due to the downward pressure on bond market interest rates and the expectation of increased market participation from social security and pension funds [3][5] - The market performance of various REITs sectors, including affordable housing, environmental protection, highways, industrial parks, warehousing logistics, energy, and consumer sectors, shows positive growth [3][36] Market Overview - As of the 23rd week of 2025, the CSI REITs (closing) index is at 881.85, up 10.7% year-on-year and 1.55% month-on-month; the CSI REITs total return index is at 1107.26, up 18.05% year-on-year and 1.58% month-on-month [3][14][18] - The trading volume of the REITs market reached 465 million shares, a year-on-year increase of 18.93%, with a transaction value of 2.093 billion yuan, up 29.28% year-on-year [3][25][29] Sector Performance - Weekly and monthly performance of various REITs sectors shows the following changes: - Affordable housing: +0.12% weekly, +4.05% monthly - Environmental protection: +0.84% weekly, +0.17% monthly - Highways: +2.72% weekly, +5.37% monthly - Industrial parks: +0.88% weekly, +1.92% monthly - Warehousing logistics: +0.85% weekly, +5.21% monthly - Energy: +2.24% weekly, +3.96% monthly - Consumer: +1.41% weekly, +7.67% monthly [3][36] Upcoming Developments - Xinyi Energy plans to issue public REITs based on solar power plants, aiming to enhance the quality and expansion of infrastructure REITs [4][12] - There are currently 16 REITs funds awaiting listing, indicating a sustained active issuance market [6][31]

Financial Performance - In 2024, the company's revenue was RMB 21,921.4 million, a decrease of 9.3% compared to 2023[9]. - Profit attributable to equity holders dropped by 73.8% to RMB 1,008.2 million in 2024[9]. - Basic earnings per share for 2024 were RMB 0.1127, down from RMB 0.4317 in 2023[9]. - The gross profit decreased from RMB 6,466.2 million in 2023 to RMB 3,473.1 million in 2024, a decline of 46.3%, with the overall gross margin dropping to 15.8%[40]. - The net profit attributable to equity holders decreased by 73.8% from RMB 3,842.8 million in 2023 to RMB 1,008.2 million in 2024[51]. - EBITDA decreased by 38.2% from RMB 7,107.5 million in 2023 to RMB 4,392.8 million in 2024, with an EBITDA margin of 20.0%[51]. - Cash generated from operating activities decreased significantly from RMB 5,305.0 million in 2023 to RMB 1,235.1 million in 2024[53]. - Other income decreased from RMB 336.4 million in 2023 to RMB 273.9 million in 2024, a reduction of RMB 62.5 million[43]. - Administrative and other operating expenses decreased by 6.6% from RMB 1,091.5 million in 2023 to RMB 1,019.3 million in 2024[46]. - Financial costs increased from RMB 348.7 million in 2023 to RMB 432.1 million in 2024, primarily due to higher average bank borrowings[48]. Market and Industry Trends - China's newly installed photovoltaic capacity grew by 28.3% to 277.57 GW in 2024, with large-scale ground-mounted projects accounting for 159.39 GW[11]. - The global photovoltaic installation growth rate slowed down in 2024 compared to 2023, with major markets like the EU showing signs of contraction[10]. - The solar industry is undergoing a significant cyclical adjustment, leading to a wave of consolidation and mergers due to financial difficulties among less efficient companies[13]. - The solar industry faces challenges with declining product prices across the supply chain, necessitating capacity reductions to stabilize market prices and improve overall profitability[23]. - The average selling price of solar glass products significantly declined due to supply-demand imbalance and intense competition[9][13]. Business Operations - The company experienced a sales volume increase in its solar glass business, despite a decrease in gross margin[9]. - In 2024, the solar glass business achieved a sales volume increase of 9.6% year-on-year, despite a significant decline in revenue and gross profit by 11.9% and 60.5% respectively due to falling average selling prices[17]. - The actual number of new production lines for solar glass was reduced from six (daily melting capacity of 6,400 tons) to four (daily melting capacity of 4,400 tons) in 2024, with total production capacity decreasing from 27,000 tons/day to 23,200 tons/day by December 31, 2024[16]. - The cumulative approved grid-connected capacity of solar power projects reached 6,244 MW by December 31, 2024, with 5,841 MW from large ground-mounted projects[19]. - The company completed the sale of solar power projects with a total capacity of 860 MW to Xinyi Energy in 2024, enhancing operational funding for project development[18]. - The company is actively seeking potential solar power projects and conducting feasibility studies, despite slowing down new project construction due to increased uncertainty in investment returns[18]. Financial Strategy and Capital Structure - The company applied for the issuance of up to RMB 3 billion in Panda bonds to optimize its capital structure and enhance financial liquidity, with approval received on March 12, 2025[20]. - The proportion of RMB bank loans increased from 33.8% at the end of 2023 to 84.3% by the end of 2024, improving financial liquidity[22]. - The net debt ratio rose to 31.0% in 2024 from 17.5% in 2023, attributed to increased borrowings and reduced cash[53]. Corporate Governance - The company has adopted the Corporate Governance Code as per the Hong Kong Stock Exchange Listing Rules for the year ending December 31, 2024[74]. - The board consists of four executive directors, two non-executive directors, and three independent non-executive directors, ensuring a diverse governance structure[75]. - The company emphasizes the importance of good corporate governance to ensure compliance with applicable laws and regulations[74]. - The board is responsible for preventing fraud and safeguarding the company's assets while formulating overall business strategies[75]. - The company has a strong focus on risk management and internal control systems to align corporate values with its culture[74]. Environmental and Social Responsibility - The group has invested in various solar power projects to reduce fossil fuel consumption and carbon dioxide emissions, improving air quality and the environment[130]. - Environmental measures include using natural gas as the primary energy source for glass furnaces and recycling waste glass in the production process[129]. - The environmental, social, and governance (ESG) report for the year ending December 31, 2024, will be published simultaneously with the annual report[131]. Employee and Compensation - The group has approximately 9,645 full-time employees as of December 31, 2024, with 8,211 in mainland China and 1,434 in other regions[62]. - Total employee costs, including director remuneration, amounted to RMB 1,279.8 million for the fiscal year ending December 31, 2024[62]. - The company maintains competitive compensation and benefits for employees, with regular reviews based on performance and overall company performance[62]. Share Options and Incentives - A total of 18,700,000 stock options were granted during the year ending December 31, 2024[157]. - The fair value of stock options granted under the 2014 stock option plan is estimated at approximately HKD 39,622,000[157]. - The exercise price of the stock options granted on March 28, 2024, is HKD 6.15, with a share price of HKD 5.99 at the time of grant[158]. - The stock options granted are subject to performance targets set by the board of directors[159]. - The company has established a standard employee performance assessment system to evaluate contributions to the group[159].

Investment Rating - The report gives a "Buy" rating for the company with a target price of HKD 3.66 [1][8][11] Core Views - The company is a global leader in photovoltaic glass manufacturing, with signs of a recovery in performance as the industry approaches a turning point [1][7][10] - The photovoltaic glass segment is a significant part of the non-silicon costs in solar modules, accounting for approximately 16.4% of the total module cost [1][51] - The company has a leading production capacity in the industry, with a nominal capacity of 32,200 t/d and an actual production capacity of 23,200 t/d as of the end of 2024 [8][16] Summary by Sections Company Overview - The company is one of the largest photovoltaic glass manufacturers globally, with a focus on both photovoltaic glass production and solar power station development [7][16] - As of the end of 2024, the company's revenue from photovoltaic glass and solar power generation accounted for 85.9% and 13.8% of total revenue, respectively [30] Industry Analysis - The photovoltaic glass segment has a more favorable supply-demand dynamic compared to other segments, with a significant price increase in new orders observed in March 2025 [2][10] - The industry has faced short-term profit pressures leading to production adjustments, but long-term policy controls are expected to tighten new capacity additions [1][52] Financial Performance - The company is projected to achieve total revenue of HKD 21.92 billion in 2024, with a year-on-year decline of 9.5% [3] - The net profit attributable to shareholders is expected to be HKD 1.008 billion in 2024, reflecting a significant year-on-year decrease of 73.4% [3][25] - The company's price-to-earnings ratio is projected to be 26 times in 2024, decreasing to 7 times by 2027, indicating a potential recovery in profitability [3][11] Competitive Advantages - The company maintains a cost advantage due to its resource allocation, large furnace scale, and accumulated technology, leading to a gross margin that is consistently higher than that of second and third-tier competitors by approximately 10-15 percentage points [8][10][14] - The company has established long-term partnerships with gas suppliers to enhance cost control and has been actively pursuing furnace large-scale operations [8][14] Investment Thesis - The current valuation is at a low point, providing a compelling investment opportunity as the industry supply-demand balance improves [10][11] - The company is expected to recover from losses to profitability as the photovoltaic glass prices stabilize and improve [2][10]

Investment Rating - The report maintains a low valuation for the company, with a 2025 PE ratio of 14.4 times, which is considered low within the photovoltaic industry chain [4][7]. Core Views - The company experienced a significant decline in performance in 2024, with revenue dropping by 9.3% to 21.9 billion RMB and net profit plummeting by 73.8% to 1.0 billion RMB due to the photovoltaic glass industry being at a cyclical low [2][4]. - The company anticipates a recovery in profitability in 2025, driven by an increase in component operating rates and rising demand for photovoltaic glass, alongside a price increase in March 2025 [1][4]. - The company plans to resume production capacity in 2025, with an expected domestic capacity of 4,000 tons per day and new production lines in Indonesia projected to commence in Q1 2026 [3][4]. Summary by Sections Financial Performance - In 2024, the company's revenue decreased by 9.3% to 21.9 billion RMB, primarily due to a decline in solar glass sales and a drop in average selling prices, which fell by 18.7% year-on-year [2][4]. - The gross margin decreased by 11 percentage points to 15.8%, and the net margin fell by 11.3 percentage points to 4.6% [2][4]. - The company did not declare a final dividend due to losses in the second half of 2024 [2]. Production Capacity and Market Demand - The company had a total daily melting capacity of 23,200 tons at the end of 2024, down from 25,800 tons at the end of 2023, as several production lines were temporarily shut down during the industry downturn [3]. - With the anticipated recovery in demand, the company plans to restart four production lines in 2025, each with a daily melting capacity of 1,000 tons [3]. - The demand for photovoltaic glass is expected to improve due to increased orders from component manufacturers and a controlled supply-demand relationship, leading to price increases in March 2025 [4]. Investment Recommendation - The report suggests that the current valuation of the company is low compared to its historical PE levels and within the Hong Kong photovoltaic industry, indicating potential for valuation improvement [4].

Investment Rating - The report maintains a low valuation for the company, with a 2025 PE ratio of 14.4 times, which is considered low within the photovoltaic industry chain [4][7]. Core Views - The company's performance in 2024 saw a significant decline, with revenue dropping by 9.3% to 21.9 billion RMB, primarily due to the photovoltaic glass industry being at a cyclical low [2][4]. - The net profit for 2024 plummeted by 73.8% to 1.0 billion RMB, leading to the decision not to distribute a final dividend [2][4]. - There is an expectation for marginal improvement in 2025, driven by an increase in the operating rate of components and rising demand for photovoltaic glass, with price increases noted in March 2025 [4][3]. Summary by Sections Financial Performance - In 2024, the company's revenue decreased by 9.3% to 21.9 billion RMB, largely due to a decline in solar glass sales and a drop in average selling prices, which fell by 18.7% year-on-year [2][4]. - The gross margin decreased by 11 percentage points to 15.8%, and the net margin fell by 11.3 percentage points to 4.6% [2][4]. - The company reported a net profit of 1.0 billion RMB for 2024, a significant decline of 73.8% [2][4]. Production Capacity and Market Outlook - The company plans to resume production capacity of 4,000 tons per day in 2025, with new production lines in Indonesia expected to be operational by Q1 2026 [3]. - As of the end of 2024, the company's photovoltaic glass capacity was 23,200 tons per day, down from 25,800 tons at the end of 2023 [3]. - The demand for photovoltaic glass is expected to improve in 2025, with a notable increase in component orders and effective capacity control within the industry [4][3]. Price Trends and Market Dynamics - In March 2025, the average price of mainstream 2.0mm photovoltaic glass increased by 15%, while 3.2mm products saw a price rise of 12.5% [4]. - The improvement in supply-demand dynamics is anticipated to help the photovoltaic glass industry recover from its cyclical low in 2025 [4].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [5]. Core Views - The company reported a significant decline in net profit for the fiscal year 2024, with a revenue of 21.9 billion RMB, down 9.5% year-on-year, and a net loss of 780 million RMB [1]. - The photovoltaic glass business saw a revenue of 18.8 billion RMB, a decrease of 13.3% year-on-year, despite a 9.6% increase in sales volume [2]. - The overall gross margin and net profit margin for the company in fiscal year 2024 were 15.8% and 4.6%, respectively, both down by 11 percentage points year-on-year [3]. - The company is experiencing a cyclical adjustment in the solar industry due to an imbalance in supply and demand, leading to a significant drop in component prices [3]. - The company plans to slow down its capital expenditures, with a total of 4.7 billion RMB in capital spending for 2024 [4]. Summary by Sections Financial Performance - For fiscal year 2024, the company reported a total revenue of 21.9 billion RMB, with a net loss of 780 million RMB, marking a year-on-year decline of 73.4% in net profit [1]. - The photovoltaic glass segment's revenue was 18.8 billion RMB, down 13.3% year-on-year, while the solar power generation segment's revenue increased by 10% to 3.02 billion RMB [2]. Production Capacity and Expansion - As of the end of 2024, the company's daily melting capacity for solar glass reached 32,200 tons, with 23,200 tons currently in production [4]. - The company has paused the development of new production bases in Yunnan and Jiangxi while exploring other overseas expansion opportunities [4]. Market Outlook - The report suggests that the company’s growth prospects remain positive due to its leading position in the industry, despite the current challenges in the photovoltaic glass market [5]. - The company’s revenue forecasts for 2025 and 2026 have been adjusted to 22.7 billion RMB and 25.1 billion RMB, respectively, reflecting a cautious outlook on market conditions [5].