Investment Rating - The investment rating for the company is "Buy" and it is maintained [6]. Core Views - The company reported a revenue of 4.079 billion CNY in Q1 2025, a year-on-year decrease of 29% and a quarter-on-quarter stability; the net profit attributable to shareholders was 106 million CNY, down 86% year-on-year but up 137% quarter-on-quarter [2][4]. - The gross margin for Q1 was 11.72%, which improved by 8.84 percentage points quarter-on-quarter, primarily due to a rise in glass prices influenced by domestic demand and enhanced cost control measures [7]. - The company is expected to maintain its leading position in the photovoltaic glass industry, with a projected net profit of 1.4 billion CNY for 2025, corresponding to a PE ratio of 26 times for A-shares and 14 times for Hong Kong shares [7]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a revenue of 4.079 billion CNY, reflecting a 29% decline year-on-year and stable performance compared to the previous quarter; the net profit attributable to shareholders was 106 million CNY, marking an 86% decrease year-on-year but a 137% increase quarter-on-quarter [2][4]. Market Dynamics - The company’s gross margin improved due to a combination of rising glass prices from domestic demand and effective cost management strategies [7]. - The demand side is expected to see a revival as domestic installations slow down, with high production levels in May but potential reductions in June [7]. Competitive Position - The company maintains a significant cost advantage over smaller competitors, which is expected to enhance profitability as natural gas prices decrease in the off-season [7]. - The company aims to expand its scale in photovoltaic glass production and improve manufacturing processes to solidify its leading position in the industry [7].
福莱特玻璃（06865）：Q1毛利率环比修复，再证龙头成本优势