Hoshine Silicon(SH:603260) Huachuang Securities·2025-05-17 10:25Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 62 CNY per share [2][8]. Core Views - The company is expected to recover as the industry is at the bottom of the cycle, with organic silicon likely to recover first [2][8]. - The company achieved a revenue of 26.692 billion CNY in 2024, a year-on-year increase of 0.41%, but the net profit attributable to shareholders decreased by 33.64% to 1.740 billion CNY [2][8]. - The first quarter of 2025 showed a revenue of 5.228 billion CNY, a year-on-year decrease of 3.47%, with a net profit of 260 million CNY, down 50.81% year-on-year [2][8]. Financial Performance Summary - For 2024, the total revenue is projected at 26.692 billion CNY, with a year-on-year growth rate of 0.4% [4]. - The net profit attributable to shareholders is expected to be 1.740 billion CNY, reflecting a significant decline of 33.6% [4]. - The earnings per share (EPS) for 2024 is estimated at 1.47 CNY, with a price-to-earnings (P/E) ratio of 35 [4]. - The company’s gross margin is projected to be 20.5% in 2024, with a net margin of 6.4% [4]. Industry Outlook - The industrial silicon sector is expected to see a recovery, with the company maintaining a cost advantage due to its self-sufficient power generation [8]. - The company is expanding its production capacity, including projects in Xinjiang and Yunnan, which are expected to enhance growth potential once the industry rebounds [8]. - The report anticipates that the organic silicon market will see price increases due to supply-demand optimization, with limited new capacity expected in the coming years [8].