Hoshine Silicon(603260) 华安证券·2024-09-05 15:00Investment Rating - The investment rating for the company is "Buy" (maintained) as of September 5, 2024 [1]. Core Views - The company demonstrated resilience in performance despite being at the bottom of the cycle, with a well-ordered advancement in the integrated supply chain [1]. - In the first half of 2024, the company achieved revenue of 13.272 billion yuan, a year-on-year increase of 11.18%, and a net profit attributable to shareholders of 978 million yuan, a decrease of 45.12% year-on-year [1]. - The second quarter of 2024 saw significant improvements in industrial silicon production and sales, with revenue from industrial silicon reaching 4.672 billion yuan, a quarter-on-quarter increase of 107.04% [1]. - The company is enhancing its competitive advantage through a complete utilization of its quartz sand resources and a focus on internal raw material usage to lower procurement costs [1]. Financial Summary - For 2024, the company expects net profits to be 2.286 billion yuan, with a year-on-year decrease of 12.9%, followed by increases of 34.0% and 28.7% in 2025 and 2026, respectively [2][4]. - The projected revenue for 2024 is 27.302 billion yuan, with a modest growth of 2.7% compared to 2023 [2]. - The gross margin is expected to improve gradually from 21.3% in 2024 to 22.4% in 2026 [4]. - The company’s P/E ratios are projected to be 25.76, 19.23, and 14.94 for 2024, 2025, and 2026, respectively [4]. Production and Cost Management - The company has successfully reduced production costs through technological upgrades and has expanded its production scale significantly [1]. - The production volume of industrial silicon in Q2 2024 was 500,000 tons, with a quarter-on-quarter increase of 13.74% [1]. - The company has achieved a leading position in the domestic market for silicon carbide products, with a crystal yield exceeding 90% and an epitaxial yield stable at over 95% [1].