EBSCN·2025-08-29 08:52Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook despite current challenges [3]. Core Views - The company's revenue and profitability in the photovoltaic glass segment are under pressure, with a significant decline in both revenue and net profit for the first half of 2025 compared to the previous year [1][2]. - The company has adjusted its strategic deployment to reduce production capacity in response to supply-demand imbalances and declining prices, maintaining a leading cost control capability in the industry [3]. - Despite the short-term challenges, the company is expected to continue expanding its production capacity, ensuring sustained shipment growth and maintaining its leading profitability in the industry [3]. Summary by Sections Financial Performance - In H1 2025, the company achieved revenue of 77.37 billion yuan, a year-on-year decrease of 27.66%, and a net profit attributable to shareholders of 2.61 billion yuan, down 82.58% [1]. - The photovoltaic glass business saw a revenue decline of 28.10% to 69.45 billion yuan, with a gross margin decrease of 12.39 percentage points to 12.31% [2]. - Other business segments showed mixed results, with engineering glass revenue increasing by 2.13% to 243 million yuan, while home glass revenue decreased by 15.89% to 122 million yuan [2]. Capacity and Cost Control - As of August 2025, the company has reduced its operational capacity to 16,400 tons per day by cold repairing three photovoltaic glass furnaces [3]. - The company’s large furnaces, which have a higher proportion in its existing capacity, are expected to further lower unit costs and enhance product yield [3]. Profit Forecast and Valuation - The profit forecast for 2025-2027 has been revised downwards, with expected net profits of 647 million yuan, 1.22 billion yuan, and 1.61 billion yuan respectively, reflecting a significant reduction in previous estimates [3][4]. - The report provides a detailed financial outlook, including revenue and profit projections, indicating a challenging environment ahead but with potential for recovery in the medium term [4][10].