Hoshine Silicon(603260) Great Wall Securities·2024-11-05 11:36Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [17]. Core Views - The company's performance in Q3 2024 showed slight improvement, with a year-on-year revenue increase of 2.44% to 20.371 billion yuan, despite a decline in net profit by 33.42% to 1.454 billion yuan [1]. - The photovoltaic industry is anticipated to reach a turning point, with significant policy support and a potential recovery in product prices, which could benefit the company's performance [7][9]. - The company is actively advancing key investment projects, enhancing its competitive advantage through industrial synergy [8]. Financial Summary - Revenue for 2024 is projected to be 29.975 billion yuan, with a year-on-year growth rate of 12.8% [1]. - The net profit for 2024 is estimated at 2.348 billion yuan, reflecting a decline of 10.5% compared to the previous year [1]. - The company's gross profit margin for the first three quarters of 2024 was 22.01%, a slight increase from the same period in 2023 [2]. - Operating cash flow for the first three quarters of 2024 saw a significant increase of 1236.39% year-on-year, amounting to 1.819 billion yuan [3]. Industry Insights - The photovoltaic industry has seen a 24.77% year-on-year increase in new installations, indicating a robust growth trajectory [7]. - The company’s main products, including industrial silicon and organic silicon, experienced fluctuating revenue, with industrial silicon revenue decreasing by 14.17% year-on-year in Q3 2024 [4]. - The report highlights that raw material prices have decreased, alleviating cost pressures on the company's main products [6]. Future Projections - The company is expected to achieve revenues of 36.695 billion yuan and 41.942 billion yuan in 2025 and 2026, respectively, with corresponding net profits of 3.262 billion yuan and 4.275 billion yuan [9]. - The projected EPS for 2024, 2025, and 2026 are 1.99 yuan, 2.76 yuan, and 3.62 yuan, respectively [9].