Arctech Solar(SH:688408) Soochow Securities·2025-09-01 05:29Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has seen a quarter-on-quarter increase in shipments, although the gross margin has slightly decreased due to structural changes. The order backlog remains sufficient [7] - For the first half of 2025, the company reported revenue of 4.04 billion yuan, a year-on-year increase of 19.6%, and a net profit attributable to shareholders of 160 million yuan, a year-on-year decrease of 31.8% [7] - The second quarter of 2025 showed revenue of 2.48 billion yuan, with a quarter-on-quarter increase of 58.6% and a year-on-year increase of 59% [7] - The company has a strong order backlog of approximately 7.29 billion yuan as of the end of Q2 2025, with tracking orders accounting for about 5.89 billion yuan [7] - Due to intense competition in the photovoltaic industry, the company's profitability is under pressure, leading to a downward revision of profit forecasts for 2025-2027 [7] Financial Summary - Total revenue forecast for 2023A is 6.39 billion yuan, with a year-on-year growth of 72.59% [1] - The net profit attributable to shareholders for 2023A is forecasted at 345.04 million yuan, with a year-on-year growth of 676.58% [1] - The earnings per share (EPS) for 2023A is projected to be 1.58 yuan [1] - The company’s price-to-earnings (P/E) ratio is 29.47 for the current price and latest diluted EPS [1] - The gross margin is expected to decline slightly from 18.63% in 2024A to 17.94% in 2027E [8]