Zhuzhou Kibing (SH:601636) Xin Lang Cai Jing·2025-09-18 08:30Core Insights - The company reported a decline in revenue and net profit for the first half of 2025, with total revenue of 7.4 billion and a net profit of 890 million, reflecting a year-on-year change of -7% and +10% respectively [1] Group 1: Float Glass Business - The float glass business generated revenue of 2.8 billion, down 24% year-on-year, despite a sales volume increase of 7% to 52.21 million weight boxes [2] - The average price of float glass decreased by 29% year-on-year, leading to a gross profit of 500 million and a gross margin of 17.8%, which is a decline of 10.6 percentage points [2] - The market is currently stabilizing due to government policies supporting real estate projects, although the industry is still facing inventory increases and pressure on deep processing orders [2] Group 2: Photovoltaic Glass Business - The photovoltaic glass segment achieved revenue of 3.2 billion, an 11% increase year-on-year, with a significant rise in sales volume to 26.672 million square meters [3] - The demand for photovoltaic glass surged due to policies promoting distributed photovoltaic power generation, resulting in a 107% year-on-year increase in new photovoltaic installations [3] - Despite the initial demand surge, the market is now facing oversupply and price declines as the installation rush subsides [3] Group 3: Profit Forecast and Valuation - The overall revenue and net profit for the company declined year-on-year, but there was an improvement in profit for Q2 2025 [3] - The company maintains its net profit forecasts for 2025-2027 at 1 billion, 800 million, and 1.06 billion respectively [3] - The company retains a "buy" rating based on the performance of its photovoltaic glass business and the potential recovery in the float glass segment [3]