First(SH:603806) SINOLINK SECURITIES·2025-04-10 00:23Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [5][10]. Core Insights - In 2024, the company reported a revenue of 19.15 billion RMB, a decrease of 15% year-on-year, and a net profit attributable to shareholders of 1.308 billion RMB, down 29% year-on-year [2]. - The company's photovoltaic film shipments increased by 25% to 2.81 billion square meters in 2024, showcasing its competitive advantages in technology, cost control, and overseas production capacity [3]. - The electronic materials business is experiencing rapid growth, with sales of photosensitive dry film increasing by 38% to 159 million square meters in 2024, indicating a strong demand recovery in the electronic circuit industry [4]. - The company has adjusted its net profit forecasts for 2025-2027 to 1.72 billion, 2.01 billion, and 2.33 billion RMB respectively, reflecting a solid competitive position and growth potential in electronic materials [5]. Summary by Sections Financial Performance - The company achieved a revenue of 19.15 billion RMB in 2024, with a year-on-year decline of 15.23%. The net profit attributable to shareholders was 1.308 billion RMB, down 29.33% year-on-year [8]. - The diluted earnings per share for 2024 is 0.501 RMB, with a projected increase to 0.660 RMB in 2025 and 0.769 RMB in 2026 [8]. Business Segments - The photovoltaic film segment saw a shipment of 2.81 billion square meters in 2024, with domestic and overseas gross margins of 13.3% and 20.2% respectively [3]. - The electronic materials segment, particularly photosensitive dry films, is entering a growth phase, with significant sales increases and successful integration into major electronic circuit companies [4]. Cash Flow and Valuation - Operating cash flow improved significantly, reaching 4.4 billion RMB in 2024, driven by better procurement and receivables management [4]. - The company’s price-to-earnings ratio is projected at 19, 16, and 14 times for 2025, 2026, and 2027 respectively, indicating a favorable valuation compared to its earnings growth [5].