Investment Rating - The report maintains a "Neutral" rating for the company [4][7][18] Core Views - The company is expected to see significant improvement in FY25 performance, with a projected rebound in gross margins and net profit [3][4] - FY24 saw a substantial decline in net profit by 73.8% to 1.01 billion RMB, attributed to falling photovoltaic glass prices and increased impairment losses [1][6] - The company plans to increase its effective annual melting capacity slightly in FY25, with no new production lines planned but a revival of existing lines [2] Financial Performance Summary - FY24 total revenue decreased by 9.3% to 21.92 billion RMB, with photovoltaic glass revenue down 11.9% to 18.82 billion RMB [1][11] - Gross profit and gross margin for FY24 fell by 46.3% and 10.9 percentage points to 3.47 billion RMB and 15.8%, respectively [1][11] - The company anticipates a gross margin rebound in FY25, with an expected increase of 4.5 percentage points to 12.1% for photovoltaic glass [3][11] - FY25 net profit is projected to rebound by 89.7% to 1.91 billion RMB, followed by a 15.9% increase in FY26 [3][11] Target Price and Valuation - The target price has been raised from 3.22 HKD to 3.43 HKD, corresponding to a 15x FY25 target P/E ratio [4][7] - The current stock price is 3.47 HKD, indicating a 1.2% downside potential from the target price [4][7]
信义光能（00968）：预计FY25业绩明显改善