First(SH:603806) Minsheng Securities·2024-11-03 03:00Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for its stock performance in the coming year [4]. Core Views - The company, a leader in the photovoltaic film sector, is experiencing temporary pressure on profitability due to declining margins and sales volumes in the solar film market, alongside increased foreign exchange losses [2][3]. - Despite the current challenges, the company is expected to navigate through the industry cycle effectively due to its strong market position, technological capabilities, and cost control [2][3]. - The company has made significant strides in expanding its overseas production capacity, which is anticipated to bolster its competitive edge and market share globally [2][3]. Financial Performance Summary - For the first three quarters of 2024, the company reported revenues of 15.174 billion yuan, a year-on-year decrease of 8.86%, and a net profit attributable to shareholders of 1.258 billion yuan, an increase of 12.08% [1]. - In Q3 2024, the company achieved revenues of 4.411 billion yuan, down 26.90% year-on-year and 18.96% quarter-on-quarter, with a net profit of 330 million yuan, reflecting a 39.67% decline year-on-year [2]. - The company's gross profit margin in Q3 2024 was 12.82%, a decrease of 5.23 percentage points from the previous quarter, indicating the impact of industry-wide price declines [2]. Future Projections - Revenue projections for 2024, 2025, and 2026 are estimated at 20.082 billion yuan, 25.583 billion yuan, and 32.840 billion yuan, respectively, with corresponding net profits of 1.564 billion yuan, 2.357 billion yuan, and 3.160 billion yuan [3][5]. - The company is expected to maintain a price-to-earnings (PE) ratio of 29X in 2024, decreasing to 20X in 2025 and 15X in 2026, reflecting anticipated growth in profitability [3][5].