TONGWEI CO.,LTD(600438) 浙商证券·2024-09-13 08:03Investment Rating - The report maintains a "Buy" rating for Tongwei Co., Ltd. [4] Core Views - The photovoltaic industry is experiencing an imbalance between supply and demand, leading to a decline in the company's performance. In H1 2024, the company reported revenue of 43.797 billion yuan, a year-on-year decrease of 40.87%, and a net profit attributable to shareholders of -3.129 billion yuan, marking a shift from profit to loss [2][3] - Despite the downturn, the company continues to expand its shipment scale and maintain its competitive advantage. In H1 2024, the sales volume of high-purity silicon reached 228,900 tons, a year-on-year increase of 28.82%. The company has successfully launched its 200,000-ton polysilicon project in Yunnan and is progressing with its 200,000-ton high-purity silicon project in Baotou, expected to be operational by the end of 2024 [2] - The aquaculture segment is showing improved profitability, with the feed industry experiencing growth despite a challenging market. The company has enhanced its production capabilities and expanded its product offerings, resulting in a 7.63% increase in food business sales volume and a 13.16% increase in sales revenue [2] Financial Summary - For 2024E, the company is projected to have a revenue of 121.542 billion yuan, a decrease of 12.63% from the previous year. The net profit attributable to shareholders is forecasted to be -4.005 billion yuan, with an EPS of -0.89 yuan [3][8] - The company’s return on equity (ROE) is expected to be -5.63% in 2024E, improving to 5.31% in 2025E and 7.09% in 2026E [3][8] - The projected P/E ratios for 2025 and 2026 are 23 and 16, respectively [3][8]