Dongguan Securities·2025-09-02 07:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the stock will outperform the market index by more than 15% in the next six months [8]. Core Views - The company is expected to benefit from the recent price increase in photovoltaic glass, which is anticipated to aid in profit recovery [4]. - The photovoltaic glass industry is currently under pressure, with the company's performance in the first half of 2025 showing a significant year-on-year decline in revenue and net profit due to oversupply and price drops across the industry [4]. - The company has established long-term, stable relationships with leading photovoltaic module manufacturers, which enhances its market position and customer resource quality [4]. - The company holds a leading market share in the photovoltaic glass sector, with a CR2 exceeding 50%, positioning it well to benefit from industry consolidation as smaller, less efficient competitors exit the market [4]. Summary by Sections Financial Performance - In the first half of 2025, the company reported revenue of 7,737 million yuan, down 27.66% year-on-year, and a net profit attributable to shareholders of 261 million yuan, down 82.58% year-on-year [4]. - For Q2 2025, revenue was 3,658 million yuan, a decrease of 26.41% year-on-year, with a net profit of 155 million yuan, down 79.02% year-on-year [4]. Market Position - The company has a strong market presence, being among the top two in the photovoltaic glass industry, which allows it to maintain a competitive edge over smaller firms [4]. - The company has successfully transitioned from relying on imported glass to domestic procurement, establishing solid partnerships with major photovoltaic component manufacturers [4]. Future Projections - The report projects earnings per share (EPS) of 0.27 yuan, 0.54 yuan, and 0.87 yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings (PE) ratios of approximately 67, 33, and 21 [5].