TONGWEI CO.,LTD(SH:600438) Changjiang Securities·2025-05-13 01:42Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - In 2024, the company reported a revenue of 91.994 billion yuan, a year-on-year decrease of 34%, with a net profit attributable to shareholders of -7.039 billion yuan. In Q4 2024, revenue was 23.722 billion yuan, down 14% year-on-year, and the net profit was -3.066 billion yuan. For Q1 2025, revenue was 15.933 billion yuan, with a net profit of -2.593 billion yuan [2][5]. - The company achieved a sales volume of 467,600 tons of polysilicon in 2024, a year-on-year increase of 20.76%, maintaining a market share of approximately 30% in China and ranking first globally. In the battery module segment, the company switched production capacity from PERC to TOPCon, achieving a total battery sales volume of 87.68 GW, an increase of 8.70% year-on-year, and holding a global market share of about 14% [10]. - The company has a strong cash reserve, with monetary funds of 29.1 billion yuan and trading financial assets of 10.9 billion yuan as of Q1 2025, supporting long-term development [10]. Summary by Sections Financial Performance - In 2024, the total revenue was 91.994 billion yuan, with a gross profit of 5.877 billion yuan, resulting in a gross margin of 6%. The operating profit was -8.418 billion yuan, and the net profit attributable to shareholders was -7.039 billion yuan [15]. - The company reported an operating cash flow of 1.144 billion yuan in 2024, with a significant asset impairment loss of 5.327 billion yuan impacting performance [10][15]. Business Operations - The company has successfully expanded its module distribution, achieving over 17 GW in distributed shipments in 2024, ranking first in the industry [10]. - The cash cost of polysilicon production has decreased to below 27,000 yuan per ton, excluding tax, enhancing the company's cost advantage [10]. Market Position - The company has maintained its leading position in the photovoltaic industry, with a continuous increase in market share and sales volume across various segments [10]. - Despite facing operational losses due to supply-demand mismatches, the company has confidence in the long-term growth of the green energy and food industries, as evidenced by share buybacks totaling over 2 billion yuan since 2024 [10].