Hoshine Silicon(603260) Guotai Junan Securities·2024-11-03 01:23Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company's Q3 2024 performance met expectations, with a comprehensive layout in the industrial chain and significant cost advantages in industrial silicon. The company is extending its product range to include polysilicon, photovoltaic glass, battery cells, and modules, with capacity gradually being released [3][4]. - The target price has been raised to 66.30 yuan from the previous 63.35 yuan, based on a projected 30 times PE for 2025 [4][6]. Financial Performance Summary - Q3 2024 revenue and net profit attributable to shareholders were 20.371 billion yuan and 1.454 billion yuan, respectively, showing year-on-year changes of +2.44% and -33.42%. The revenue for Q3 2024 was 7.099 billion yuan, with a net profit of 476 million yuan, reflecting year-on-year changes of -10.68% and +18.42% [4]. - The gross profit margin for Q3 2024 was 19.61%, up 49.8 percentage points year-on-year, while the net profit margin was 6.61%, an increase of 1.65 percentage points year-on-year [4]. - The company’s main products saw production volumes of 480,400 tons for industrial silicon and 114,900 tons for 110 raw rubber, with sales volumes of 348,100 tons and 96,200 tons, respectively [4]. - The average price of industrial silicon decreased by 10.02% year-on-year and 7.68% quarter-on-quarter, while costs for key materials like silicon ore and petroleum coke also declined [4]. Industry Position and Outlook - The company is positioned as a leader in both organic silicon and industrial silicon, leveraging synergies in the "coal-electricity-silicon" collaborative development model. The production capacity for polysilicon is gradually being released, and the company is entering the core areas of the photovoltaic industry [4][5]. - The company’s projects, including the third phase of organic silicon in Xinjiang and the second phase of industrial silicon in the eastern region, have reached production capacity, enhancing the integrated advantages of the industrial chain [4].