Shanxi Securities·2025-05-15 09:13Investment Rating - The report maintains a "Buy-A" rating for the company [1][7]. Core Views - The company achieved a turnaround in Q1 2025, with a net profit of 1.1 billion yuan, reflecting a 136.7% increase quarter-on-quarter, despite a year-on-year decline of 86.0% [5][6]. - The company remains a leader in the photovoltaic glass industry, with a total production capacity of 19,400 t/d and a market share exceeding 50% when combined with its main competitor [6][7]. - The company is expected to face short-term pressure on downstream demand and product prices following a surge in installations, but it is projected to maintain its industry-leading position due to its scale, resources, and technology [7]. Financial Performance - For Q1 2025, the company reported revenues of 40.8 billion yuan, a year-on-year decrease of 28.8% but stable quarter-on-quarter [5]. - In 2024, the company is expected to generate revenues of 186.8 billion yuan, down 13.2% year-on-year, with a net profit of 10.1 billion yuan, reflecting a 63.5% decline [6][9]. - The company's gross margin for 2024 is projected to be 15.5%, down 6.3 percentage points year-on-year, primarily due to declining market prices for photovoltaic glass [6]. Earnings Forecast - The expected earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 0.44 yuan, 0.89 yuan, and 1.08 yuan, respectively [7][9]. - The price-to-earnings (P/E) ratios for the same years are estimated at 35.6, 17.4, and 14.4, respectively [7][9].