TRINA(SH:688599) SINOLINK SECURITIES·2024-10-31 02:05Investment Rating - The report maintains a "Buy" rating for the company [2]. 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 [2]. - The decline in profitability is attributed to low prices in the photovoltaic component industry, which pressured margins, and impairment losses totaling 6.22 billion RMB for assets and 1.20 billion RMB for credit [2]. - The company is strategically expanding its global production capacity with new facilities 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-margin markets [2]. - The company aims to become a comprehensive energy solution provider, leveraging its distributed systems, mounting structures, and energy storage businesses to support growth and mitigate risks [3]. - The profit forecast for 2024-2026 has been adjusted to -5.9 billion RMB, 29.3 billion RMB, and 46.6 billion RMB respectively, with corresponding PE ratios of 19 and 12 for 2025-2026 [3]. Summary by Sections Performance Analysis - The company experienced a significant decline in revenue and profitability in Q3 2024, with a gross margin drop of 3.6 percentage points to 9.48% [2]. - Impairment losses were a major factor in the financial downturn, impacting overall performance [2]. Strategic Initiatives - The company is proactively establishing production bases in key international markets to bolster its resilience against global trade risks and enhance competitiveness [2]. - The diversified business model, including distributed systems and energy storage, is expected to provide multiple revenue streams and support long-term growth [3]. Financial Projections - The adjusted net profit forecasts indicate a recovery trajectory post-2024, with significant growth anticipated in 2025 and 2026 [3].