TZE(002129) 长江证券·2024-11-01 04:11Investment Rating - The investment rating for TCL Zhonghuan is "Buy" and is maintained [3]. Core Views - The report highlights that the company's revenue for the first three quarters of 2024 reached 22.582 billion yuan, a year-on-year decrease of 53.59%. The net profit attributable to the parent company was -6.061 billion yuan. In Q3 2024, the revenue was 6.369 billion yuan, down 53.7% year-on-year but up 1.4% quarter-on-quarter, with a net profit of -2.998 billion yuan [3][6]. - The report identifies key factors affecting the company's Q3 performance, including industry-level price-cost imbalances and a smaller scale of battery components, which further dragged down the company's performance [6]. - The company achieved a shipment of approximately 94.86 GW of photovoltaic materials in the first three quarters of 2024, a year-on-year increase of 11.4%, with a market share of 19.2% in silicon wafers, ranking first in the industry [6]. - TCL Zhonghuan has entered into a shareholder agreement with PIF (Saudi Arabia Public Investment Fund) and VI to establish a joint venture in Saudi Arabia for a factory with an annual production capacity of 20 GW of photovoltaic crystalline silicon wafers, with a total investment of approximately 2.08 billion USD [7]. - The report anticipates that the current unsustainable cash cost situation in the industry will lead to a potential recovery in silicon wafer profitability in the future [7]. Financial Summary - For the first three quarters of 2024, the company's operating cash flow was 2.56 billion yuan, although it decreased by 28.4% year-on-year, it remained positive [6]. - The financial projections indicate a significant drop in revenue for 2024, with expected total revenue of 27.006 billion yuan, a decrease from 59.146 billion yuan in 2023 [11]. - The projected net profit for 2024 is -7.158 billion yuan, with a gradual recovery expected in subsequent years [11].