Investment Rating - The report maintains a "Neutral" rating for the company with a target price of HKD 3.22, indicating a potential upside of 2.4% based on the current price of HKD 3.14 [3][5]. Core Insights - The company has issued a profit warning, expecting a significant decline in net profit for FY24, projecting a drop of 70%-80% year-on-year, which translates to an estimated net profit of HKD 8.4 billion to HKD 12.6 billion [1][3]. - The decline in profitability is attributed to three main factors: an imbalance in supply and demand for photovoltaic glass leading to a substantial drop in glass prices, impairment provisions for suspended or under-maintenance glass production lines, and inventory write-downs due to falling glass prices [1][2]. - The photovoltaic industry is currently facing a surplus situation, with efforts from industry associations to self-regulate capacity and avoid blind expansion, although product prices have not yet shown significant improvement [2]. Financial Summary - For FY24, the company forecasts a revenue of HKD 24.77 billion, a decrease of 7% from FY23, with net profit expected to be HKD 2.98 billion, down 28.9% [4]. - The projected financials for FY25 and FY26 show a recovery trend, with revenues expected to rise to HKD 27.53 billion and HKD 30.58 billion, respectively, and net profits anticipated to increase to HKD 3.24 billion and HKD 3.58 billion [4][12]. - Key financial metrics include a projected earnings per share (EPS) of HKD 0.33 for FY24, improving to HKD 0.36 in FY25 and HKD 0.39 in FY26 [4][12].
信义光能：FY24盈警逊预期