TONGWEI CO.,LTD(SH:600438) Changjiang Securities·2025-05-19 01:51Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a revenue of 91.994 billion yuan in 2024, 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]. Summary by Relevant Sections Company Performance - In 2024, the company achieved a polysilicon sales volume of 467,600 tons, a year-on-year increase of 20.76%, capturing approximately 30% of the national market share, ranking first globally. The battery module sales reached 87.68 GW, a growth of 8.70%, maintaining the top position in global battery shipments for eight consecutive years, with a market share of about 14% [10]. - The company successfully transitioned its battery production capacity from PERC to TOPCon, achieving a TNC capacity of 150 GW. The module sales volume was 45.71 GW, a year-on-year increase of 46.93% [10]. - In the aquaculture sector, the company saw a counter-cyclical growth in feed sales, with a total electricity settlement of 5.007 billion kWh, resulting in a carbon reduction of 2.68 million tons [10]. Financial Data - The company reported an operating cash inflow of 1.14 billion yuan in 2024, but asset impairment provisions of 5.3 billion yuan negatively impacted performance. In Q1 2025, the operating cash outflow was 1.457 billion yuan, remaining stable year-on-year, with asset impairment losses of 796 million yuan primarily due to inventory depreciation [10]. - The company has a strong cost advantage in the silicon material business, with cash production costs at its Inner Mongolia base dropping below 27,000 yuan per ton (excluding tax) [10]. - As of Q1 2025, the company had cash reserves of 29.1 billion yuan and trading financial assets of 10.9 billion yuan, supporting long-term development [10]. Market Outlook - Despite facing operational losses due to supply-demand mismatches, the company remains optimistic about the long-term development of green energy and food industries. It has repurchased shares worth over 2 billion yuan since 2024, acquiring 102 million shares, which is about 2.26% of the total share capital [10].