Longi(SH:601012) Soochow Securities·2025-08-26 15:38Investment Rating - The investment rating for Longi Green Energy is "Buy" (maintained) [1] Core Views - The report highlights that in Q2 2025, the company has reduced its losses compared to previous quarters, and the mass production of BC (Bifacial Cell) technology is progressing steadily [1][8] - The company is expected to face challenges due to intensified industry competition and declining prices for photovoltaic modules, leading to a downward adjustment in profit forecasts for 2025-2027 [8] Financial Performance Summary - Total revenue for 2023 is projected at 129,498 million RMB, with a slight increase of 0.39% year-on-year. However, a significant decline of 36.23% is expected in 2024, followed by a further decrease of 20.16% in 2025, before recovering in subsequent years [1][9] - The net profit attributable to shareholders is forecasted to be 10,751 million RMB in 2023, with a drastic loss of 8,618 million RMB in 2024 and a continued loss of 4,484 million RMB in 2025, before returning to profitability in 2026 and 2027 [1][9] - The earnings per share (EPS) is expected to be 1.42 RMB in 2023, dropping to -1.14 RMB in 2024 and -0.59 RMB in 2025, with a recovery to 0.41 RMB in 2026 and 0.96 RMB in 2027 [1][9] Production and Sales Insights - In the first half of 2025, the company produced 52.08 GW of silicon wafers and shipped 41.85 GW of battery modules, with Q2 shipments showing a significant increase [8] - The report indicates that the company’s second-generation BC technology is progressing well, with a production capacity of 24 GW by the end of Q2 2025 [8] Financial Health Indicators - The company maintains a healthy financial position with a debt-to-asset ratio of 60.72% and a low interest-bearing debt ratio of 21.45% as of the end of H1 2025 [8] - Operating cash flow for Q2 2025 was reported at 12.6 billion RMB, showing a significant improvement compared to previous quarters [8]