TONGWEI CO.,LTD(SH:600438) Huachuang Securities·2025-05-19 08:46Investment Rating - The report maintains a "Recommendation" rating for Tongwei Co., Ltd. with a target price of 20.50 CNY [1][7]. Core Views - The company is focusing on cost reduction and efficiency improvement while successfully expanding into overseas markets [7]. - The company holds a leading position in the silicon material and battery sectors, with significant growth in its component business, particularly in international markets [7]. Financial Summary - Revenue Forecast: The total revenue for 2024 is projected at 91,994 million CNY, with a year-on-year decline of 33.9%. Revenue is expected to grow to 109,645 million CNY in 2025, representing a 19.2% increase [3][8]. - Net Profit: The company is expected to report a net loss of 7,039 million CNY in 2024, improving to a loss of 4,314 million CNY in 2025, before turning profitable in 2026 with a net profit of 3,076 million CNY [3][8]. - Earnings Per Share (EPS): EPS is forecasted to be -1.56 CNY in 2024, improving to -0.96 CNY in 2025, and reaching 0.68 CNY in 2026 [3][8]. - Valuation Ratios: The price-to-earnings (P/E) ratio is projected to be -11 in 2024, -18 in 2025, and 25 in 2026, with a price-to-book (P/B) ratio of 1.6 in 2024 [3][8]. Business Performance - Silicon Sales: In 2024, the company achieved high-purity silicon sales of 467,600 tons, a year-on-year increase of 21%, maintaining the highest market share globally [7]. - Battery Production: The company sold 87.68 GW of batteries in 2024, a 9% increase year-on-year, securing a 14% global market share [7]. - Component Sales Growth: The company’s component sales reached 45.71 GW in 2024, a 47% increase year-on-year, with overseas sales growing by 99% [7]. Market Position - The company is recognized as a dual leader in silicon materials and battery cells, with successful overseas market penetration and a strong focus on technological innovation [7].