Investment Rating - The investment rating for the company is "Buy" [2][10]. Core Views - The company has significantly turned around its performance in Q1 2025, achieving a revenue of 4.08 billion RMB, which is a substantial improvement compared to the expected loss of 70 million RMB [6]. - The average price of 2.0mm photovoltaic glass increased by 5.5% quarter-on-quarter, contributing to a gross margin increase of 8.8 percentage points to 11.7% [6]. - The company is expected to see a substantial increase in profitability in Q2 2025, despite a downward adjustment in profit forecasts for 2025-2027 due to increased production from second and third-tier companies and the impact of tariffs on Vietnamese production [6]. Financial Overview - Revenue projections for the company are as follows: 21,524 million RMB in 2023, decreasing to 18,683 million RMB in 2024, and then slightly declining to 18,433 million RMB in 2025, before increasing to 21,259 million RMB in 2026 and 23,888 million RMB in 2027 [5][12]. - Net profit is projected to be 2,760 million RMB in 2023, dropping to 1,007 million RMB in 2024, and further to 893 million RMB in 2025, before recovering to 1,874 million RMB in 2026 and 2,452 million RMB in 2027 [5][12]. - The company’s gross margin is expected to decline from 21.8% in 2023 to 13.6% in 2025, with a recovery to 17.6% in 2026 and 18.5% in 2027 [12]. Market Dynamics - The photovoltaic glass market is experiencing fluctuations, with prices rebounding and then starting to decline as inventory levels increase [6]. - The company’s production capacity in Vietnam is affected by "reciprocal tariffs," but the overall impact is expected to be limited due to the company's ability to redirect exports to other countries [6]. - The company is maintaining a competitive edge with higher gross margins compared to other leading companies in the industry [6].
福莱特玻璃（06865）：1季度大幅扭亏超预期，维持买入