Zhuzhou Kibing (SH:601636) GOLDEN SUN SECURITIES·2024-10-30 10:44Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on expected performance over the next six months [7]. Core Views - The company reported a revenue of 11.6 billion yuan for the first three quarters of 2024, a year-on-year increase of 3.7%, but the net profit attributable to shareholders decreased by 43.8% to 700 million yuan [1]. - The third quarter saw a significant decline in revenue and profit, with a revenue of 3.69 billion yuan, down 14.2% year-on-year, and a net loss of 110 million yuan, a drop of 118.8% year-on-year [1]. - The report highlights that while the float glass market is showing signs of recovery, the photovoltaic glass prices remain at a low point, indicating a longer timeline for profit recovery [5]. Financial Performance Summary - For the first three quarters of 2024, the gross margin was 19.0%, down 4.4 percentage points year-on-year, with a significant drop in the third quarter gross margin to 7.7%, down 20.0 percentage points year-on-year [4]. - The company’s net profit margin for the first three quarters was 5.9%, a decrease of 5.2 percentage points year-on-year, with a net loss margin of -4.7% in Q3 [4]. - The report projects net profits for 2024-2026 to be 643 million yuan, 954 million yuan, and 1.127 billion yuan respectively, with a compound annual growth rate of 32.4% [5]. Industry Insights - The float glass market experienced a consumption decline of 2.1% year-on-year in Q3 2024, while production increased by 2.4% year-on-year [2]. - The average price of float glass in Q3 was 1405.2 yuan/ton, down 31.0% year-on-year, but has shown a recovery to 1337.38 yuan/ton by the end of October [2]. - The photovoltaic glass market is facing challenges with prices dropping significantly, but potential supply-side reforms may lead to price recovery in the future [3].