HIUV(SH:688680)2024-11-11 01:07Investment Rating - The report maintains an "Accumulate" rating for the company [1][3] Core Views - The company reported a significant year-on-year increase in losses for the first three quarters of 2024, with revenue decreasing by 48.02% to RMB 2.05 billion and a net profit attributable to shareholders of -RMB 248.58 million [3][5] - The sales gross margin has stabilized, and the recovery in module demand is expected to enhance the profitability of the EVA film segment [3][5] - The company has adjusted its earnings per share forecasts for 2024-2026 to -RMB 3.47, RMB 1.50, and RMB 2.52 respectively, reflecting a downward revision due to the impact of EVA particle prices [3][4] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved operating revenue of RMB 2.05 billion, a decrease of 48.02% year-on-year [5] - The gross margin for the first three quarters was -0.21%, down by 5.18 percentage points year-on-year, while the net margin was -12.11%, down by 10.20 percentage points [3][5] - The company reported a net loss of RMB 248.58 million for the first three quarters of 2024, which is a significant increase in losses compared to the previous year [3][5] Market and Product Insights - The price of EVA particles has remained low, around RMB 10,000 per ton, which has pressured the sales price of EVA films [3][5] - The company is focusing on technological advancements in EVA film formulations, including the development of differentiated products for various customer needs [3][4] Valuation Metrics - The forecasted earnings per share for 2024-2026 have been adjusted to -RMB 3.47, RMB 1.50, and RMB 2.52, with corresponding price-to-earnings ratios of 28.8 and 17.2 for 2025 and 2026 respectively [4][6] - The company’s market capitalization is approximately RMB 3.64 billion, with a three-month average trading volume of RMB 106.71 million [2]