Investment Rating - The investment rating for the company is "Buy" and is maintained [2]. Core Views - The company reported a revenue of 14.604 billion HKD for the first three quarters of 2024, a year-on-year decrease of 8.06%. The net profit attributable to shareholders was 1.296 billion HKD, down 34.18% year-on-year. In Q3 2024, revenue was 3.908 billion HKD, a decline of 37.03% year-on-year and 21.37% quarter-on-quarter. The net profit for Q3 was -203 million HKD, a decrease of 122.97% year-on-year and 127.48% quarter-on-quarter [3][4]. - The industry faced pressure due to increased capacity in Q2 and inventory depletion in Q3, leading to a rise in glass inventory to historical highs and a drop in prices near cash costs for some companies. Despite maintaining a significant cost advantage, the company's operational performance was slightly negative due to industry-wide impacts [3][4]. - The company’s Q3 expense ratio was 10.6%, an increase of 3.7 percentage points quarter-on-quarter. The absolute values of financial and management expenses increased due to timing, while revenue decline affected the expense ratio. The inventory at the end of Q3 was 2.17 billion HKD, up 1.5 percentage points quarter-on-quarter, indicating good inventory control [4]. - The current profitability in the photovoltaic glass segment is at a low point, with a significant decrease in production enthusiasm and ongoing reductions in production. It is expected that as demand recovers post-Spring Festival in 2025, inventory will continue to decrease, leading to a gradual recovery in profitability. The company, as an industry leader, is expected to benefit from future supply-side policies [4].
福莱特玻璃：Q3行业因素导致盈利承压，期待需求修复后盈利拐点