SINOLINK SECURITIES·2024-08-28 02:03Investment Rating - The report maintains a "Buy" rating for the company, with projected earnings per share corresponding to a price-to-earnings ratio of 15/8 times for 2024 [2]. Core Views - 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]. - The second quarter saw a significant improvement in profitability, with a net profit of 740 million yuan, reflecting a year-on-year growth of 28.8% [2]. - The overseas production capacity has shown a notable premium, with the Vietnamese subsidiary generating 1.14 billion yuan in revenue and a net profit of 320 million yuan, resulting in a net profit margin of 28% [2]. - The recent reduction in photovoltaic glass production is expected to alleviate supply and demand pressures in the near future, with industry capacity reductions reaching 8,300 tons per day since early July [2]. Summary by Sections Performance Analysis - In Q2, the company achieved a revenue of 4.97 billion yuan, a 15.2% increase year-on-year, but a 13.2% decrease quarter-on-quarter due to a decline in component production and falling glass prices [2]. - The gross margin for Q2 was 26.45%, up 6.5 percentage points year-on-year and 5.0 percentage points quarter-on-quarter, benefiting from lower raw material costs [2]. - The net profit margin for Q2 was 14.92%, reflecting a 1.7 percentage point increase quarter-on-quarter, despite minor impacts from inventory and fixed asset impairment provisions [2]. Earnings Forecast and Valuation - The earnings forecast for 2024-2026 has been adjusted to 2.8 billion, 3.6 billion, and 4.7 billion yuan respectively, with current A/H share prices corresponding to a PE ratio of 15/8 times for 2024 [2].