Zhuzhou Kibing (SH:601636) Xin Lang Cai Jing·2025-04-29 02:35Core Viewpoint - The company reported a decline in revenue and net profit for FY 2024, with a significant drop in net profit year-over-year, while Q1 2025 showed a slight recovery in net profit despite a decrease in revenue [1][5]. Financial Performance - FY 2024 revenue was 15.65 billion yuan, with a net profit of 380 million yuan, reflecting a year-over-year decline of 0.21% and 78% respectively [1]. - Q1 2025 revenue was 3.48 billion yuan, with a net profit of 470 million yuan, showing a year-over-year decrease of 9.7% but a 6.4% increase in net profit [1]. - The company made impairment provisions of 298.62 million yuan, impacting net profit by 244.67 million yuan after tax [1]. Business Segments - Float glass and energy-saving glass revenue for FY 2024 was 6.86 billion yuan and 2.43 billion yuan, down 24% and 13% year-over-year respectively [2]. - The average selling price for float glass was 640 yuan per heavy box, down 19% year-over-year, while energy-saving glass saw a price increase of 9% to 776 yuan per square meter [2]. - Solar glass revenue increased by 69% to 5.75 billion yuan, with sales of 45.741 million square meters, benefiting from an increase in production capacity [2]. Profitability - The overall gross margin for FY 2024 was 15.5%, a decline of 9.5 percentage points year-over-year, primarily due to falling prices [3]. - Q1 2025 gross margin was 12%, down 14 percentage points year-over-year but up 6.5 percentage points quarter-over-quarter [3]. Capacity Expansion - As of the end of FY 2024, the company operated 24 float glass production lines with a daily capacity of 16,600 tons, 9 solar glass production lines with a capacity of 10,600 tons, and several other specialized production lines [4]. - The company has over 200 million tons of available silica sand resources, indicating strong scale and raw material advantages [4]. Long-term Outlook - The company is viewed positively for its long-term growth potential, maintaining a "buy" rating despite lowering profit forecasts for 2025-2027 [5]. - Projected net profits for 2025, 2026, and 2027 are 750 million yuan, 820 million yuan, and 1.53 billion yuan respectively, revised down from previous estimates [5].