Soochow Securities·2025-08-28 14:50Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's revenue for Q2 2025 was 7.74 billion, a year-on-year decrease of 28%, with a net profit attributable to shareholders of 260 million, down 83% year-on-year [8] - The decline in performance was primarily due to asset impairment losses of approximately 240 million caused by product inventory and kiln maintenance [8] - Despite a slight decrease in shipments, price increases have led to a recovery in profitability, with an estimated gross margin increase of about 5 percentage points to around 16.7% [8] - The company has reduced its production capacity due to kiln maintenance, with a total production capacity of 16,400 tons/day as of the end of August 2025 [8] - The company maintains a leading position in the market, with a combined market share with Xinyi exceeding 50% [8] Financial Summary - The total revenue forecast for 2025 is 15.899 billion, with a year-on-year decrease of 14.90% [1] - The net profit attributable to shareholders for 2025 is projected to be 616.08 million, a year-on-year decrease of 38.80% [1] - The earnings per share (EPS) for 2025 is estimated at 0.26 yuan, with a price-to-earnings (P/E) ratio of 62.90 [1] - The company expects a gradual recovery in profitability in 2026 and 2027, with net profits projected at 1.161 billion and 1.488 billion respectively [8]