Xin Lang Cai Jing·2025-04-27 02:27Core Viewpoint - The company reported a decline in revenue and net profit for 2024, with expectations for potential recovery in profitability due to rising glass prices in the solar industry [1][2]. Financial Performance - The company achieved a revenue of 18.683 billion yuan in 2024, a year-on-year decrease of 13.20% [1]. - The net profit attributable to shareholders was 1.007 billion yuan, down 63.52% year-on-year [1]. - In Q4 2024, revenue was 4.079 billion yuan, a decline of 27.67% year-on-year, with a net profit of -289 million yuan, a decrease of 136.54% year-on-year [1]. - The operating cash flow for 2024 was 5.914 billion yuan, an increase of 200.65% year-on-year, indicating strong cash flow [1]. Cost and Margin Analysis - The gross margin for 2024 was 15.50%, down 6.3 percentage points year-on-year, with Q4 gross margin at 2.88%, a decrease of 3.09 percentage points quarter-on-quarter [2]. - The company's expense ratio for 2024 was 7.5%, an increase of 0.5 percentage points year-on-year, but Q4 expenses decreased by 3.65 percentage points quarter-on-quarter due to reduced sales and financial expenses [1][2]. Capacity and Market Strategy - The company has a total production capacity of 19,400 tons per day as of the end of 2024, with plans to launch projects in Anhui and Nantong based on market conditions [2]. - The company is expanding its overseas presence, with existing production capacity of 2,000 tons per day in Vietnam and plans to invest in a glass furnace in Indonesia to meet regional demand [2]. Profit Forecast and Investment Recommendation - The company anticipates improved performance in Q1 2025 due to a surge in solar component prices driven by policy changes, although the supply-demand relationship in the industry has not shown significant improvement [2]. - Projected net profits for 2025, 2026, and 2027 are 1.272 billion yuan, 1.882 billion yuan, and 2.257 billion yuan, representing year-on-year growth of 26.41%, 47.88%, and 19.96% respectively [2]. - Earnings per share (EPS) are expected to be 0.54 yuan, 0.80 yuan, and 0.96 yuan for the same years, with corresponding price-to-earnings (PE) ratios of 34.21, 23.13, and 19.29 based on the closing price of 18.58 yuan on March 28, 2025 [2].