Investment Rating - The report gives a "Buy" rating for the company with a target price of HKD 3.66 [1][8][11] Core Views - The company is a global leader in photovoltaic glass manufacturing, with signs of a recovery in performance as the industry approaches a turning point [1][7][10] - The photovoltaic glass segment is a significant part of the non-silicon costs in solar modules, accounting for approximately 16.4% of the total module cost [1][51] - The company has a leading production capacity in the industry, with a nominal capacity of 32,200 t/d and an actual production capacity of 23,200 t/d as of the end of 2024 [8][16] Summary by Sections Company Overview - The company is one of the largest photovoltaic glass manufacturers globally, with a focus on both photovoltaic glass production and solar power station development [7][16] - As of the end of 2024, the company's revenue from photovoltaic glass and solar power generation accounted for 85.9% and 13.8% of total revenue, respectively [30] Industry Analysis - The photovoltaic glass segment has a more favorable supply-demand dynamic compared to other segments, with a significant price increase in new orders observed in March 2025 [2][10] - The industry has faced short-term profit pressures leading to production adjustments, but long-term policy controls are expected to tighten new capacity additions [1][52] Financial Performance - The company is projected to achieve total revenue of HKD 21.92 billion in 2024, with a year-on-year decline of 9.5% [3] - The net profit attributable to shareholders is expected to be HKD 1.008 billion in 2024, reflecting a significant year-on-year decrease of 73.4% [3][25] - The company's price-to-earnings ratio is projected to be 26 times in 2024, decreasing to 7 times by 2027, indicating a potential recovery in profitability [3][11] Competitive Advantages - The company maintains a cost advantage due to its resource allocation, large furnace scale, and accumulated technology, leading to a gross margin that is consistently higher than that of second and third-tier competitors by approximately 10-15 percentage points [8][10][14] - The company has established long-term partnerships with gas suppliers to enhance cost control and has been actively pursuing furnace large-scale operations [8][14] Investment Thesis - The current valuation is at a low point, providing a compelling investment opportunity as the industry supply-demand balance improves [10][11] - The company is expected to recover from losses to profitability as the photovoltaic glass prices stabilize and improve [2][10]
信义光能（00968）：深度研究报告：全球光伏玻璃龙头，业绩底部景气拐点初显