HTSC·2025-10-28 09:07Investment Rating - The investment rating for the company is "Buy" for both A and H shares, maintained from previous assessments [7]. Core Views - The company reported a revenue of 12.46 billion yuan and a net profit of 640 million yuan for the first three quarters of 2025, reflecting a year-on-year decline of 14.7% and 50.8% respectively. However, Q3 showed a revenue of 4.73 billion yuan and a net profit of 380 million yuan, indicating a year-on-year increase of 21.0% and 5.8 million yuan [1][2]. - The recovery in photovoltaic glass prices has led to an improvement in gross margins, alongside a reversal of asset impairments, which supports the company's position as an industry leader with scale and profitability advantages [1][2]. Summary by Sections Revenue and Profitability - For the first three quarters of 2025, the company achieved a revenue of 12.46 billion yuan, down 14.7% year-on-year, while Q3 revenue was 4.73 billion yuan, up 21.0% year-on-year and 29.2% quarter-on-quarter. The gross margin for Q3 was 16.8%, up 10.8% year-on-year and 0.1% quarter-on-quarter [2][3]. Cost Management and Cash Flow - The company's expense ratio slightly decreased to 7.4% for the first three quarters of 2025. The operating cash flow improved to 2.26 billion yuan in Q3, up 4.3% year-on-year, driven by increased sales [3]. Inventory and Asset Impairment - The company experienced a significant reduction in inventory, which fell by 38.4% to 1.21 billion yuan by the end of Q3. This reduction contributed to a reversal of asset impairments amounting to 80 million yuan [3][4]. Market Outlook - The photovoltaic glass industry has seen a notable decrease in inventory levels, with expectations for stable pricing in Q4 due to improved supply-demand dynamics. The average price for 2.0mm coated photovoltaic glass was reported at 13 yuan per square meter, up 6.1% year-on-year [4]. Earnings Forecast and Valuation - The earnings forecast remains unchanged, with projected net profits of 1.04 billion yuan, 1.80 billion yuan, and 2.28 billion yuan for 2025, 2026, and 2027 respectively. The target price for A shares is set at 22.59 yuan, while for H shares it is 13.54 HKD [5].