First(SH:603806) Jin Rong Jie·2025-04-09 09:59Core Insights - Foster (603806) reported a total revenue of 19.147 billion yuan for 2024, a year-on-year decrease of 15.23%, and a net profit attributable to shareholders of 1.308 billion yuan, down 29.33% [1] - The company maintains a competitive edge in the photovoltaic film sector, but the photovoltaic backsheet business has significantly declined, while the electronic materials segment has emerged as a new growth driver [1][4] Photovoltaic Materials Business - The photovoltaic materials segment faced severe challenges in 2024, with photovoltaic film sales reaching 138.906 million square meters, an increase of 43.61%, and revenue of 9.878 billion yuan, up 3.79% [4] - Conversely, photovoltaic backsheet sales were only 6.778 million square meters, a decline of 18.26%, with revenue dropping to 414.7899 million yuan, down 43.53% [4] - The decline in the backsheet business highlights the company's vulnerability in certain segments of the photovoltaic supply chain, despite its leading position in photovoltaic film [4] - The global photovoltaic installation capacity growth has slowed, and the company plans to expand its product range and overseas capacity to address diverse battery and module technology needs [4] Electronic Materials Business - The electronic materials segment emerged as a highlight in the 2024 financial report, with photosensitive dry film sales reaching 73.665 million square meters, a growth of 35.83%, and revenue of 275.3727 million yuan, up 26.92% [5][6] - The PCB market is expected to enter a new growth cycle due to the acceleration of AI applications and the development of automotive intelligence [5][6] - The company has established a dual-base layout in East and South China and has formed partnerships with leading PCB companies, enhancing its competitive position in the electronic materials market [6] Functional Film Materials Business - The functional film materials segment showed steady performance, with aluminum-plastic film sales reaching 5.606 million square meters, a growth of 35.54%, and revenue of 58.9002 million yuan, up 26.52% [7] - The company is focusing on differentiated product development for RO support films, gaining recognition from downstream customers and achieving bulk sales [7] - Despite the steady growth, the functional film materials segment remains relatively small and contributes limitedly to overall performance, necessitating increased R&D investment and market expansion efforts [7] Overall Summary - Foster's 2024 annual report indicates significant pressure on the photovoltaic materials business, while the electronic materials segment has become a new growth point, and the functional film materials business is progressing steadily [7] - The company needs to focus on technological innovation, market expansion, and cost control to navigate the increasingly complex market environment [7]