LYG(SH:600876) Zhongyuan Securities·2025-04-09 14:08Investment Rating - The report maintains an "Accumulate" rating for the company, indicating a projected relative increase of 5% to 15% compared to the CSI 300 index over the next six months [2][25]. Core Views - The company reported a significant decline in performance, with total revenue of 4.594 billion yuan in 2024, down 30.34% year-on-year, and a net loss of 610 million yuan, a change of -254.52% [6][10]. - The photovoltaic glass industry is experiencing overcapacity, leading to a substantial drop in prices and impacting the company's financial results. The company has implemented measures to optimize production lines and reduce costs to navigate through this challenging period [9][10]. - The company sold 340 million square meters of photovoltaic glass in 2024, a decrease of 6.65% year-on-year, with an average selling price of 13.31 yuan per square meter, down 24.06% [9][10]. Summary by Sections Financial Performance - The company reported a negative operating cash flow of -394 million yuan in 2024, a decline of 374.48% year-on-year, and a basic earnings per share of -0.94 yuan [6][10]. - The gross profit margin was -4.35%, down 16.49 percentage points year-on-year, indicating a challenging cost structure [9][10]. Industry Outlook - The photovoltaic glass industry is entering a phase of sustained capacity reduction, which is expected to gradually improve the supply-demand balance and alleviate some operational pressures [9][10]. - The report anticipates that the company's net profit will improve in 2026 and 2027, with projections of 109 million yuan and 222 million yuan, respectively, corresponding to a diluted EPS of 0.17 yuan and 0.34 yuan [10][11]. Strategic Initiatives - The company is focusing on optimizing production scale and reducing costs through strategic measures such as phasing out older production lines and enhancing operational efficiency [9][10]. - The report highlights the company's strong financial backing from its controlling shareholder, China National Building Material Group, which may support its long-term growth in the photovoltaic glass sector [10].