Zhuzhou Kibing (601636) 天风证券·2024-10-31 14:46Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [4]. Core Views - The company has faced dual pressures in the float glass and photovoltaic glass sectors, with expectations for industry consolidation [1]. - For the first three quarters of 2024, the company achieved revenue of 11.6 billion yuan, a year-on-year increase of 3.7%, but net profit attributable to shareholders decreased by 43.8% to 699 million yuan [1]. - The report anticipates further declines in float glass profits in Q4, with expectations for the industry to bottom out in the first half of the following year [2]. Financial Performance Summary - In Q3 2024, the company reported revenue of 3.689 billion yuan, a year-on-year decrease of 14.2% and a quarter-on-quarter decrease of 9% [1]. - The gross margin for Q3 2024 was 7.7%, down 14.8 percentage points from the previous quarter, while the net margin was -4.7%, down 14.4 percentage points [3]. - The company’s operating expenses ratio for the first three quarters of 2024 was 12.43%, an increase of 1.8 percentage points year-on-year [3]. Production and Capacity Insights - The company cold-repaired two float glass production lines with a daily melting capacity of 600 tons in Q3 2024, while the photovoltaic glass capacity is currently at 8,400 tons per day [2]. - The report estimates that the company’s photovoltaic glass revenue for Q3 2024 was approximately 1.22 billion yuan, based on a production volume of 129 million square meters and a 90% sales rate [2]. Earnings Forecast - The report has revised down the profit forecast for the company, projecting net profits of 590 million yuan, 1.12 billion yuan, and 1.67 billion yuan for 2024, 2025, and 2026 respectively [4]. - The corresponding price-to-earnings ratios are projected to be 31, 16, and 11 times for the respective years [4].