Ge Long Hui·2025-08-07 02:27Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, primarily due to the ongoing downturn in the float glass business and the negative impact from its stake in Xinyi Glass [1][2]. Group 1: Financial Performance - In H1 2025, the company's revenue was 9.8 billion yuan, a year-on-year decrease of 10% and a quarter-on-quarter decrease of 14% [1]. - The net profit attributable to shareholders was 1 billion yuan, down 60% year-on-year but up 18% quarter-on-quarter [1]. - Float glass revenue was 5.4 billion yuan, reflecting a year-on-year decline of 16% and a quarter-on-quarter decline of 17% [2]. Group 2: Float Glass Business - The float glass business faced continuous demand downturn, leading to pressure on both price and volume [2]. - The average market price for 5mm white glass was 700 yuan per box, down 27 yuan year-on-year and 4 yuan quarter-on-quarter [2]. - The gross margin for float glass was 17.8%, a decrease of 10.5 percentage points year-on-year, although it improved by 8.3 percentage points quarter-on-quarter due to falling raw material prices [2]. Group 3: Automotive and Processed Glass - Automotive glass sales showed resilience with revenues of 3.3 billion yuan, up 11% year-on-year, while processed glass revenue was 1.1 billion yuan, down 22% year-on-year [3]. - The gross margin for automotive glass was 54.5%, an increase of 4.9 percentage points year-on-year, while processed glass had a margin of 29.7%, up 1.3 percentage points year-on-year [3]. - The decline in processed glass revenue is attributed to pressure on demand, while the improvement in margins for both segments is driven by lower raw material costs [3]. Group 4: Future Outlook - The company maintains a positive growth outlook, with expectations for revenue in 2025-2027 to be 20.7 billion, 20.4 billion, and 20.8 billion yuan respectively, reflecting year-on-year changes of -7.5%, -1.1%, and +1.7% [4]. - Net profit forecasts for the same period are 3.2 billion, 3.3 billion, and 3.6 billion yuan, with year-on-year changes of -6.3%, +6.1%, and +7.9% [4]. - The company is focusing on potential supply-side measures to counteract the downturn in the float glass market and is maintaining a "buy" rating [4].