Zhuzhou Kibing (SH:601636) Minsheng Securities·2024-10-31 02:43Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 6.77 CNY and projected dynamic PE ratios of 25, 18, and 14 for the years 2024, 2025, and 2026 respectively [5][3]. Core Views - The company reported a revenue of 11.6 billion CNY for the first three quarters of 2024, a year-on-year increase of 3.72%, but a significant decline in net profit attributable to shareholders by 43.77% to 699 million CNY [1]. - The float glass segment is under pressure with both volume and price facing challenges, leading to a substantial increase in inventory levels and a decrease in average prices [2]. - The photovoltaic glass prices have been declining month by month, with a notable reduction in production capacity as companies respond to the oversupply situation [3]. - The company is expected to benefit from cost advantages in float glass and photovoltaic glass, with a focus on the supply-side policies that may help clear excess capacity in the industry [3]. Financial Summary - For 2024, the company is projected to achieve a revenue of 16.1 billion CNY, with a net profit attributable to shareholders of 720 million CNY, reflecting a significant decrease of 58.9% compared to 2023 [4][6]. - The gross margin is expected to decline significantly, with the overall gross margin for Q3 2024 reported at 7.69%, down 20.01 percentage points year-on-year [1][2]. - The company’s financial metrics indicate a challenging outlook, with net profit margins and return on assets expected to decrease in the coming years [6].