Longi(SH:601012) Huachuang Securities·2024-09-05 19:37Investment Rating - The report maintains a "Recommended" rating for Longi Green Energy (601012) with a target price of 16.75 CNY, compared to the current price of 13.76 CNY [2][3]. Core Views - The company reported a significant decline in revenue and profit due to large impairment losses, with H1 2024 revenue at 38.529 billion CNY, down 40.41% year-on-year, and a net loss of 5.243 billion CNY, down 157.13% year-on-year [2][3]. - The report highlights the company's strategic shift towards BC technology and the anticipated launch of HPBC 2.0, which is expected to enhance competitiveness in the market [3]. - The expansion into the North American market has shown promising results, with the establishment of a 5GW component factory in the U.S. contributing to significant revenue and profit [3]. Financial Performance Summary - H1 2024 revenue: 38.529 billion CNY, down 40.41% YoY - H1 2024 net profit: -5.243 billion CNY, down 157.13% YoY - H1 2024 gross margin: 7.66%, down 11.43 percentage points YoY - H1 2024 net margin: -13.61%, down 27.81 percentage points YoY - Q2 2024 revenue: 20.855 billion CNY, down 42.6% YoY, up 18.00% QoQ - Q2 2024 net profit: -2.893 billion CNY, down 152.21% YoY, increased loss QoQ [2][3][4]. Production and Sales Summary - In H1 2024, the company shipped 44.44GW of silicon wafers, with external sales of 21.96GW, and 2.66GW of battery sales, alongside 31.34GW of component shipments, with significant growth in the Asia-Pacific region [3]. - The company has reported a substantial increase in sales volume in the Asia-Pacific region, exceeding 140% year-on-year [3]. Future Outlook - The company aims to scale up HPBC 2.0 production, targeting 50GW of capacity by the end of 2025, with a complete transition to BC products planned by the end of 2026 [3]. - The report projects net profits for 2024-2026 to be -5.631 billion CNY, 5.077 billion CNY, and 7.240 billion CNY respectively, reflecting a recovery in profitability [3][4].