Haitong Securities·2024-06-17 06:31Investment Rating - The investment rating for the company is "Outperform the Market" [2][13] Core Views - The company is expected to perform well in Q4 2023 and Q1 2024, with a significant increase in operating cash flow. In Q4 2023, the net profit attributable to the parent company reached 791 million yuan, a year-on-year increase of 27.9%, while the gross profit margin was 23.4%, higher than the annual average of 21.8% for 2023. For Q1 2024, the net profit is projected to be 760 million yuan, a substantial year-on-year growth of 48.6% [5][6] - The photovoltaic installation capacity is rapidly increasing, and the market share of bifacial modules is rising, ensuring strong demand for photovoltaic glass. In the first quarter of 2024, the total installed capacity of photovoltaic power generation in China reached 45.74 GW, a year-on-year increase of 35.89% [6] - The company is expanding its production capacity in an orderly manner, with a competitive advantage from large furnaces and self-supplied raw materials. By the end of 2023, the total production capacity was 20,600 tons, with new projects expected to come online in 2024 [6][9] Financial Performance and Forecast - The company’s revenue for 2023 is projected to be 21.524 billion yuan, with a year-on-year growth of 39.2%. The net profit for 2023 is expected to be 2.760 billion yuan, reflecting a 30.0% increase compared to the previous year [7][9] - The earnings per share (EPS) for 2024 is estimated at 1.63 yuan, with a projected net profit of 3.828 billion yuan, representing a year-on-year growth of 38.7% [9][10] - The company maintains a strong gross profit margin, expected to be 23.8% in 2024, and a net asset return rate of 14.7% [9][10] Valuation - The company is expected to maintain its leading profitability in the photovoltaic glass industry, with a projected price-to-earnings (PE) ratio of 20-22 times for 2024, corresponding to a reasonable value range of 32.60-35.86 yuan per share [6][9]