Shanxi Securities·2024-06-20 05:22Investment Rating - The report assigns an investment rating of AA to the convertible bond of Folaite [2] Core Views - Folaite is positioned as a high-quality target within the photovoltaic industry chain, with strong growth potential despite short-term capacity oversupply [4] - The company is one of the largest manufacturers of photovoltaic glass in China, with a total market capitalization of 49.2 billion yuan and a significant increase in net profit [3] - The report highlights the company's competitive advantages, including high industry concentration and lower competitive pressure, as well as its strategic investments in upstream quartz sand resources [4] Company Overview - Folaite (601865.SH) primarily engages in the design, development, production, and sales of photovoltaic glass, holding a market share of 20.6% alongside its competitor Xinyi Solar [3] - In Q1 2024, Folaite reported revenue of 5.726 billion yuan, a year-on-year increase of 6.73%, and a net profit attributable to shareholders of 760 million yuan, up 48.57% year-on-year [3] Industry Positioning - The photovoltaic industry is crucial for energy security and development in China, with photovoltaic glass being an indispensable segment of the industry [4] - The company is expected to increase its production capacity significantly in 2024, enhancing its economies of scale and bargaining power [4] Valuation Analysis - Based on the valuation model, the reasonable valuation range for Folaite's convertible bond is estimated to be between 110.39 and 121.18 yuan [5]