Hoshine Silicon(603260) 光大证券·2024-09-03 05:41Investment Rating - The report maintains a rating of "Accumulate" for the company [4] Core Views - The company reported a revenue of 13.272 billion yuan in the first half of 2024, representing a year-on-year increase of 11.2%, while the net profit attributable to shareholders decreased by 45.1% to 978 million yuan [2] - The decline in product prices and inventory impairment led to a significant drop in profits, but the operating cash flow improved significantly in Q2, reaching a historical high [2] - The company is enhancing its "coal-electricity-silicon" industrial chain layout and focusing on developing new silicon-based materials [2] Financial Performance Summary - In H1 2024, the industrial silicon business generated revenue of 6.937 billion yuan, with a gross margin of 29.5% [2] - The organic silicon business achieved revenue of 5.986 billion yuan, but the gross margin fell by 6.2 percentage points to 16.3% due to price declines [2] - The company recorded a significant inventory impairment loss of 484 million yuan in H1 2024, impacting profits [2] Capacity and Production - As of June 2024, the company has an annual production capacity of 1.22 million tons for industrial silicon, 1.73 million tons for organic silicon, and 50,000 tons for polysilicon [2] - The company has successfully launched its first photovoltaic production line in its Xinjiang integrated photovoltaic industrial park [2] Profit Forecast and Valuation - The profit forecasts for 2024-2026 have been revised downwards due to falling product prices, with expected net profits of 2.521 billion yuan (down 38%), 3.544 billion yuan (down 31%), and 4.078 billion yuan respectively [2]