Huaxin Securities·2024-10-31 10:31Investment Rating - The report maintains a "Buy" rating for the company [1][3]. Core Views - The company's third-quarter earnings were under pressure, with a significant decline in profitability due to a sharp drop in photovoltaic glass prices, leading to the first quarterly loss [1]. - The report highlights that the industry is experiencing a reduction in supply, which is expected to alleviate downward price pressure and gradually restore profitability [1][3]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 14.604 billion yuan, a year-on-year decrease of 8.06%, and a net profit attributable to shareholders of 1.296 billion yuan, down 34.18% year-on-year [1]. - In Q3 2024, the company reported a revenue of 3.908 billion yuan, a year-on-year decline of 37.03% and a quarter-on-quarter decline of 21.37%, resulting in a net loss of 203 million yuan [1]. Industry Analysis - The report notes that since July, the domestic photovoltaic glass industry has seen an increase in production cuts, with a significant reduction in operating capacity, which is expected to help balance supply and demand [1]. - As of October, the industry had a cold repair capacity of 2,450 tons, with daily melting capacity decreasing by 2.34% compared to the previous month [1]. Earnings Forecast - The earnings forecast has been adjusted downward due to the company's lower-than-expected performance in the first three quarters. Projected revenues for 2024, 2025, and 2026 are 20.399 billion yuan, 24.699 billion yuan, and 29.399 billion yuan, respectively [5]. - The expected EPS for the same years is 0.42 yuan, 1.04 yuan, and 1.46 yuan, with corresponding PE ratios of 64.2, 26.0, and 18.5 times [5].