Longi(601012) 华创证券·2024-11-05 05:43Investment Rating - The report maintains a "Recommended" rating for Longi Green Energy (601012) with a target price of 23.37 CNY [1]. Core Views - The third quarter losses have narrowed sequentially, primarily due to a reduction in asset impairment. The company is expected to see promising developments in BC battery technology [1]. - The solar industry is witnessing a price turning point, with component prices anticipated to stabilize and recover, aiding in the profitability recovery of companies within the sector [1]. - Longi Green Energy is positioned as a dual leader in silicon wafers and modules, focusing on differentiated development strategies [1]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 58.593 billion CNY, a year-on-year decrease of 37.73% [1]. - The net profit attributable to shareholders was -6.505 billion CNY, with a net profit margin of -11.1%, reflecting a year-on-year decline of 31.87% and a sequential decrease of 3.79% [1]. - In Q3 2024, the company reported a revenue of 20.064 billion CNY, with a net loss of 1.261 billion CNY, marking a year-on-year decline of 150.14% [1]. - The company’s gross margin was 7.98%, down 23.53 percentage points year-on-year [1]. Production and Sales Summary - The company shipped 82.80 GW of silicon wafers and 55.39 GW of battery modules in the first three quarters of 2024, with both figures showing sequential growth [1]. - The report indicates that the company’s Q3 investment income was -0.353 billion CNY, with asset impairment losses amounting to -0.774 billion CNY [1]. Future Outlook - The company is investing in the construction of production lines for BC technology, with expectations to exceed 30 GW of output by 2025. New products are anticipated to improve performance and maintain competitiveness in the global market [1]. - The establishment of production capacity in the U.S. through joint ventures is expected to mitigate trade risks and significantly enhance U.S. shipment volumes in the coming year [1].