Longi(SH:601012) Minsheng Securities·2024-09-02 10:00Investment Rating - The report maintains a "Recommended" rating for Longi Green Energy (601012.SH) [2][6] Core Views - The company reported significant declines in revenue and net profit for H1 2024, with revenue at CNY 38.53 billion, down 40.41% year-on-year, and a net loss of CNY 5.25 billion, down 157.13% year-on-year [1] - The company is facing pressure on profitability due to substantial price declines in the industry and inventory impairment provisions, with a gross margin of 7.66%, down 11.42 percentage points year-on-year [1] - Longi Green Energy has achieved a milestone in mass production of HPBC 2.0 technology, enhancing its product offerings and competitive edge in the market [1] - The company is steadily advancing its BC capacity construction, with its U.S. component factory now operational, supporting its business expansion in North America [1] Summary by Sections Financial Performance - For H1 2024, the company achieved a revenue of CNY 38.53 billion, a decrease of 40.41% year-on-year, and a net profit attributable to shareholders of -CNY 5.25 billion, a decline of 157.13% year-on-year [1] - In Q2 2024, revenue was CNY 20.86 billion, down 42.60% year-on-year, with a net loss of CNY 2.89 billion, down 152.21% year-on-year [1][2] Product Development - The company has successfully mass-produced HPBC 2.0 technology, with a total BC component shipment of approximately 10 GW in H1 2024 [1] - The Hi-MO 9 dual-sided component product, based on HPBC 2.0 technology, has a maximum power output of 660W, exceeding the same specifications of TOPCon components by over 30W [1] Capacity Expansion - As of the end of 2023, the company had a self-owned silicon wafer capacity of 170 GW, battery capacity of 80 GW, and component capacity of 120 GW [1] - The company expects its BC capacity to reach 70 GW by the end of 2025, with HPBC 2.0 capacity accounting for approximately 50 GW [1]