Zhuzhou Kibing (SH:601636) ZHONGTAI SECURITIES·2024-11-13 01:44Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company's profitability is temporarily affected by the decline in photovoltaic glass prices, while float glass is expected to stabilize [1] - The company reported a revenue of 11.6 billion yuan for the first three quarters, a year-on-year increase of 3.7%, but a significant drop in net profit [1] - The acquisition of a 28.78% stake in its subsidiary, Qibin Energy, is expected to enhance management and operational efficiency [1] Financial Summary - Revenue projections for 2024-2026 are adjusted to 6.8 billion, 10.7 billion, and 12.9 billion yuan respectively, down from previous estimates [1] - The company's net profit for 2024 is expected to be 676 million yuan, reflecting a 61% decrease year-on-year [1] - The price-to-earnings ratio (P/E) for 2024-2026 is projected at 26.2, 16.6, and 13.7 respectively, while the price-to-book ratio (P/B) is expected to be 1.3, 1.2, and 1.2 [1] Market Conditions - Float glass and photovoltaic glass prices have significantly declined due to reduced demand from the real estate and photovoltaic installation sectors [1] - As of October, the average price of float glass was 1,364 yuan per ton, a 15.7% increase from September, indicating potential recovery [1] - The overall gross margin for the company in Q3 was 7.7%, a decrease of 20 percentage points year-on-year, primarily due to the pressure from photovoltaic glass profitability [1]