KAIYUAN SECURITIES·2024-08-28 14:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2][5][11] Core Views - The company's Q2 gross margin improved quarter-on-quarter, indicating a potential turnaround in the industry supply-demand relationship [2][5] - The company reported a 10.5% year-on-year increase in revenue for H1 2024, reaching 10.696 billion yuan, and a 38.14% increase in net profit attributable to shareholders, amounting to 1.499 billion yuan [5][6] - The report anticipates a continued increase in market share due to the company's leading position in the photovoltaic glass sector and ongoing capacity clearance in the industry [5][6] Financial Performance Summary - For H1 2024, the company achieved revenue of 10.696 billion yuan, with a year-on-year growth of 10.5% [5] - The net profit attributable to shareholders for H1 2024 was 1.499 billion yuan, reflecting a year-on-year increase of 38.14% [5] - The gross margin for Q2 2024 was reported at 26.5%, up by 5.0 percentage points from the previous quarter [5][6] - The company’s revenue from photovoltaic glass in H1 2024 was 9.659 billion yuan, with a year-on-year growth of 9.9% [6] - The projected net profit for 2024-2026 is adjusted to 3.104 billion, 3.479 billion, and 4.690 billion yuan respectively [5][7] Industry Position and Outlook - The company maintains a strong position in the photovoltaic glass industry, with over 90% of its large furnaces being of the thousand-ton level, leading to lower costs and higher yield rates [6] - The industry is experiencing a capacity clearance, with over 10,000 tons of capacity already shut down as of June 30, 2024, which is expected to alleviate the oversupply situation [6] - The report highlights that many new expansion projects are being delayed or canceled due to declining profitability and stricter policy approvals, which may further stabilize the supply-demand dynamics in the industry [6]