SINOLINK SECURITIES·2024-08-28 03:11Investment Rating - The report maintains a "Buy" rating for the company, with projected earnings per share (PE) ratios of 15 and 8 times for 2024 in A and H shares respectively [2]. Core Insights - The company's revenue for the first half of 2024 reached 10.7 billion yuan, a year-on-year increase of 10.5%, while net profit attributable to shareholders was 1.5 billion yuan, up 38.1% year-on-year [2]. - In Q2, the company achieved a net profit of 740 million yuan, reflecting a year-on-year growth of 28.8% [2]. - The company's profitability improved significantly in Q2, with a gross margin of 26.45%, up 6.5 percentage points year-on-year, and a net margin of 14.92%, up 1.7 percentage points [2]. - The overseas subsidiary in Vietnam generated revenue of 1.14 billion yuan with a net profit of 320 million yuan, indicating a net margin of 28%, which is significantly higher than domestic operations [2]. - The report anticipates a reduction in supply pressure in the photovoltaic glass market due to recent production cuts, with an estimated 8,300 tons per day of capacity being idled since early July [2]. Summary by Sections Performance Analysis - Q2 revenue was 4.97 billion yuan, a 15.2% increase year-on-year but a 13.2% decrease quarter-on-quarter, primarily due to a decline in component production and falling glass prices [2]. - The company faced minor setbacks from inventory and fixed asset impairments totaling 0.12 billion and 0.81 billion yuan respectively, which slightly affected Q2 performance [2]. Profit Forecast and Valuation - The net profit forecasts for 2024, 2025, and 2026 have been adjusted to 2.8 billion, 3.6 billion, and 4.7 billion yuan respectively, reflecting the company's latest production and expansion plans [2]. - The current share prices correspond to a PE ratio of 15 for 2024, indicating a favorable valuation for potential investors [2].