TRINA(688599) SINOLINK SECURITIES·2024-10-31 02:41Investment Rating - The report maintains a "Buy" rating for the company [2][7]. Core Views - The company reported a revenue of 631 billion RMB for the first three quarters of 2024, a year-on-year decrease of 22%. The net profit attributable to shareholders was a loss of 8.47 billion RMB, marking a shift from profit to loss compared to the previous year [2]. - The decline in profitability is attributed to low prices in the photovoltaic component industry and impairment losses, with the gross margin dropping by 3.6 percentage points to 9.48% in Q3 [2]. - The company is strategically expanding its global production capacity with new bases in Indonesia (1GW battery and components) and the USA (5GW components), expected to commence production in the second half of 2024, enhancing its competitive edge in high-profit markets [2]. - The company aims to become a comprehensive energy solution provider, with significant contributions from its distributed systems, mounting structures, and energy storage businesses, which are expected to bolster its resilience against market fluctuations [2]. Summary by Sections Financial Performance - For 2024, the company is projected to have a revenue of 79.74 billion RMB, a decrease of 29.68% from 2023, with a net profit forecasted at -586 million RMB [4]. - The earnings per share (EPS) is expected to be -0.269 RMB in 2024, recovering to 1.343 RMB in 2025 and 2.136 RMB in 2026 [4]. - The return on equity (ROE) is projected to be -1.90% in 2024, improving to 8.86% in 2025 and 12.75% in 2026 [4]. Valuation and Forecast - The report adjusts the net profit forecasts for 2024-2026 to -5.9 billion RMB, 29.3 billion RMB, and 46.6 billion RMB respectively, with corresponding price-to-earnings (PE) ratios of 19 and 12 for 2025 and 2026 [2]. - The company's diversified business model, including distributed systems, mounting structures, and energy storage, is expected to provide multiple profit points and enhance growth potential [2].