First(SH:603806) Xin Lang Cai Jing·2025-04-29 02:40Core Viewpoint - The company released its Q1 2025 financial report, showing a revenue of 3.624 billion yuan, a year-on-year decrease of 31.89%, and a net profit attributable to shareholders of 401 million yuan, a year-on-year decrease of 23.08%, but a quarter-on-quarter increase of 709.79% [1][2]. Financial Performance - Q1 revenue was 3.624 billion yuan, down 31.89% year-on-year [2]. - Net profit attributable to shareholders was 401 million yuan, down 23.08% year-on-year, but up 709.79% quarter-on-quarter [2]. Gross Margin Analysis - The gross margin improved quarter-on-quarter, primarily due to the recovery in the gross margin of photovoltaic film, driven by rising prices of raw materials and film [3]. - The price of EVA particles has rebounded since Q4 of last year, leading to a price increase in photovoltaic film [3]. - Orders from overseas bases in Thailand and Vietnam are full, resulting in a supply-demand imbalance and price increases [3]. Outlook for the Year - The company expects a moderate recovery in the gross margin of photovoltaic film, with overseas revenue share continuing to rise [4]. - The Thai production base is set to start operations in May, which will increase the overseas production share to around 20%, potentially raising the overseas revenue share to 15%-20% for the year [4]. - The photovoltaic film industry is beginning to clear out, with 2-3 tier manufacturers controlling shipment volumes to reduce losses [4]. - The price of ordinary photosensitive dry film has bottomed out, and high-end products have started shipping, which is expected to increase the average price of electronic materials this year [4]. Profit Forecast - The company forecasts net profits attributable to shareholders for 2025-2027 to be 1.626 billion, 2.061 billion, and 2.4 billion yuan, with year-on-year growth rates of 24.34%, 26.75%, and 16.49% respectively [4]. - Earnings per share are projected to be 0.62, 0.79, and 0.92 yuan for the same period, corresponding to price-to-earnings ratios of 19.35, 15.27, and 13.11 times based on the closing market value on April 25 [4].