TONGWEI CO.,LTD(SH:600438) EBSCN·2025-08-25 03:25Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future investment returns [4]. Core Insights - The company achieved a revenue of 40.509 billion yuan in H1 2025, a year-on-year decrease of 7.51%, with a net profit attributable to shareholders of -4.955 billion yuan, indicating an expanded loss compared to the previous year [1]. - In Q2 2025, the company reported a revenue of 24.575 billion yuan, a year-on-year increase of 1.44%, with a net profit of -2.363 billion yuan, showing a narrowing loss compared to the previous quarter [1]. - The company holds a global market share of approximately 30% in polysilicon sales, maintaining its industry-leading position, with a sales volume of 161,300 tons in H1 2025 [2]. - The company continues to lead in battery sales with 49.89 GW sold in H1 2025, and is advancing in various battery technologies, including TOPCon and HJT [3]. - Component sales in overseas markets have shown rapid growth, with 24.52 GW sold in H1 2025, and a significant reduction in non-battery costs by 11% year-on-year [4]. Summary by Sections Financial Performance - The company reported a revenue of 139.104 billion yuan in 2023, with a projected decline to 91.994 billion yuan in 2024, followed by a slight recovery to 91.133 billion yuan in 2025E [5]. - The net profit attributable to shareholders is expected to be -3.034 billion yuan in 2025E, with a gradual recovery to 4.942 billion yuan by 2027E [5]. Market Position - The company maintains a leading position in the polysilicon market with a 30% global market share and a 90% shipment ratio of N-type products [2]. - In the battery segment, the company continues to lead globally with 49.89 GW sold in H1 2025, showcasing advancements in technology and efficiency [3]. Cost Management - The company has successfully reduced its non-battery costs by 11% year-on-year, contributing to improved profitability despite overall revenue declines [4]. - Operating expenses have decreased by 31% year-on-year, indicating effective cost management strategies [4]. Future Outlook - The report projects a recovery in net profit starting in 2026, with expected profits of 1.93 billion yuan and 4.94 billion yuan in 2027 [5]. - The company is expected to enhance its market share further through advancements in battery technologies and component sales [4].