Dongguan Securities·2025-05-28 08:08Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the stock will outperform the market index by more than 15% over the next six months [8]. Core Insights - The company has turned its performance around in Q1 2025, achieving profitability after a loss in previous periods. The Q1 2025 net profit reached 106 million yuan, a significant improvement of 136.72% quarter-on-quarter [5]. - The company faced challenges in 2024, with a revenue decline of 13.20% year-on-year, primarily due to industry supply-demand imbalances and falling prices in the photovoltaic glass market [5]. - The company is increasing its R&D investment, which reached 605 million yuan in 2024, representing 3.24% of revenue, up by 0.47 percentage points year-on-year. This investment aims to enhance product competitiveness and manufacturing efficiency [5]. - The company has a strong market position, with a production capacity of 19,400 tons per day and a market share exceeding 50% in the photovoltaic glass industry [5]. Summary by Sections Financial Performance - In 2024, the company reported total revenue of 18.683 billion yuan and a net profit of 1.007 billion yuan, reflecting a year-on-year decline of 63.52% [5][7]. - For Q1 2025, the company achieved revenue of 4.079 billion yuan, down 28.76% year-on-year but up 0.01% quarter-on-quarter [5]. R&D and Innovation - The company is focusing on R&D to optimize product formulations and production technologies, with a goal of producing lighter and more efficient photovoltaic glass [5]. Market Position and Cash Flow - The company reported a stable operating cash flow of 5.913 billion yuan in 2024, a year-on-year increase of 200.59%, and has maintained positive cash flow for seven consecutive quarters [5].