TZE(SZ:002129) Changjiang Securities·2025-05-11 11:42Investment Rating - The investment rating for TCL Zhonghuan is "Buy" and is maintained [7]. Core Views - In 2024, TCL Zhonghuan reported a revenue of 28.419 billion yuan, a year-on-year decrease of 52%, with a net profit attributable to shareholders of -9.818 billion yuan. In Q4 2024, revenue was 5.836 billion yuan, down 44% year-on-year, with a net profit of -3.757 billion yuan. For Q1 2025, revenue was 6.101 billion yuan, a 39% decline year-on-year, with a net profit of -1.906 billion yuan [2][5]. - The company maintained a positive operating cash flow, generating 2.839 billion yuan in 2024 and 0.491 billion yuan in Q1 2025 [11]. - The photovoltaic materials business solidified its global leading position, with silicon wafer shipments increasing by 10.5% to 125.8 GW in 2024, maintaining an 18.9% market share. The company is advancing the large-size silicon wafer strategy, with 60.4 GW of large-size (210 series) products shipped [11]. - In Q1 2025, the operational capacity of the photovoltaic materials business improved, with a production capacity of 200 GW and a significant increase in order volume [11]. - The company recorded substantial asset impairment losses, totaling 4.434 billion yuan in 2024, including inventory impairment of 3.337 billion yuan and goodwill impairment of 0.915 billion yuan. In Q1 2025, asset impairment losses amounted to 0.709 billion yuan [11]. Financial Summary - In 2024, TCL Zhonghuan's total revenue was 28.419 billion yuan, with a gross profit margin of -9%. The operating profit was -2.581 billion yuan, and the net profit attributable to shareholders was -9.818 billion yuan [17]. - The company’s cash flow from operating activities was positive, with net cash flow of 2.839 billion yuan in 2024 and 0.491 billion yuan in Q1 2025 [17]. - The company’s R&D expenditure in 2024 was 1.1 billion yuan, accounting for 3.9% of total revenue [11].