TONGWEI CO.,LTD(SH:600438) EBSCN·2024-09-04 23:37Investment Rating - The report maintains a "Buy" rating for Tongwei Co., Ltd. (600438.SH) [2] Core Views - The company reported a significant decrease in revenue and net profit for H1 2024, with revenue at CNY 437.97 billion, down 40.87% year-on-year, and a net loss of CNY 31.29 billion, down 123.58% year-on-year [2] - Despite the challenges, the company is experiencing steady growth in silicon material sales and is advancing new capacity and industrial silicon projects [2] - The company is expected to launch HJT + copper interconnection solutions by the end of 2024, with TNC battery capacity projected to exceed 100GW [2] - The company has achieved a 108.36% year-on-year increase in module sales, reaching 18.67GW in H1 2024 [2] - The report anticipates a further increase in market share due to the company's leading position in silicon material production and advancements in battery technology [2] Summary by Sections Financial Performance - For H1 2024, the company achieved a revenue of CNY 437.97 billion, a decrease of 40.87% year-on-year, and a net profit of -CNY 31.29 billion, a decrease of 123.58% year-on-year [2] - Q2 2024 revenue was CNY 242.27 billion, down 40.66% year-on-year, with a net profit of -CNY 23.43 billion, down 150.18% year-on-year [2] - The company expects net profits for 2024-2026 to be -CNY 44.25 billion, CNY 19.97 billion, and CNY 34.14 billion respectively, reflecting significant downward adjustments [2] Production and Capacity - The company sold 228,900 tons of high-purity crystalline silicon in H1 2024, an increase of 28.82% year-on-year [2] - The company’s silicon production capacity is expected to exceed 850,000 tons by the end of 2024, with projects in Yunnan and Baotou reaching full production [2] - TNC production capacity is accelerating, with 38GW PERC capacity fully upgraded and 16GW TNC capacity launched on schedule [2] Market Position and Strategy - The company has successfully entered procurement frameworks with major domestic clients and expanded its market share in distributed markets [2] - The company is focusing on the development of "fishing and solar integration" projects, with a cumulative installed capacity of 4.39GW by the end of June 2024 [2] - The report highlights the company's ongoing innovation in technology, with TNC modules achieving a maximum research power of 743.2W [2]