Southwest Securities·2024-09-02 10:09Investment Rating - The report assigns a "Hold" rating to the company, down from a previous rating [1]. Core Views - The company achieved a revenue of 10.696 billion yuan in 2024H1, representing a year-on-year growth of 10.51%, and a net profit attributable to shareholders of 1.499 billion yuan, up 38.14% year-on-year [2]. - The profitability of the photovoltaic glass segment improved significantly, with a gross margin of 24.70% in 2024H1, an increase of 4.69 percentage points compared to the same period last year [2]. - The report predicts a decline in revenue for 2024, with a forecast of 20.1975 billion yuan, a decrease of 6.16% from 2023 [3]. Summary by Sections Financial Performance - In 2024Q2, the company reported revenue of 4.970 billion yuan, a year-on-year increase of 15.22%, and a net profit of 739 million yuan, up 28.83% year-on-year [2]. - The operating cash flow turned positive, reaching 1.746 billion yuan, a significant increase of 306.53% year-on-year [2]. Business Segments - The photovoltaic glass business accounted for 90.31% of total revenue in 2024H1, with a revenue contribution of 9.659 billion yuan, reflecting a year-on-year growth of 9.93% [2]. - The nominal capacity of the company's photovoltaic glass furnaces was 23,000 tons/day as of June 30, 2024, with 2,600 tons/day currently under cold repair [2]. Market Conditions - The price of photovoltaic glass has faced downward pressure, with a decline of over 20% for 2.0mm glass prices due to excess capacity [2]. - The report notes that the company has been expanding its overseas market presence, with a focus on building production lines in Vietnam and Indonesia, which are expected to enhance profitability [2]. Earnings Forecast - The earnings forecast for 2024-2026 has been revised down to 2.240 billion yuan, 2.663 billion yuan, and 3.585 billion yuan, respectively, with corresponding PE ratios of 17.64, 14.84, and 11.02 [3][6].