SYP(SH:600819) GOLDEN SUN SECURITIES·2025-11-10 07:54Investment Rating - The report initiates coverage with a "Buy" rating for the company [4]. Core Views - The company has a strong technical foundation and focuses on high-end, differentiated products, particularly in the TCO glass sector, which is expected to benefit from the industrialization of perovskite solar cells [2][4]. - The automotive glass segment is poised for growth due to the increasing penetration of electric vehicles, which will enhance both market share and profit margins for the company [3][4]. - The company has successfully implemented a strategy of product differentiation and vertical integration, which has allowed it to maintain revenue stability despite industry pressures [18]. Summary by Sections Company Overview - Established in 1983, the company is a representative of high-quality glass in China, with main businesses in float glass, architectural glass, automotive glass, and specialty glass [14]. Float Glass - The float glass business is transitioning towards high-value, high-tech differentiated products, with a leading position in TCO glass, a key material for perovskite solar cells [2][35]. - The current price of TCO glass is approximately $10 per square meter, with a significant demand expected as production capacity increases [2]. Automotive Glass - The company is experiencing growth in the automotive glass segment, with a projected revenue of 1.01 billion yuan in the first half of 2025, a year-on-year increase of 16.2% [3][16]. - The gross margin for automotive glass is expected to improve, reaching 13.3% in the first half of 2025, up 1.4 percentage points year-on-year [3][16]. Architectural Processed Glass - The architectural processed glass segment is focusing on high-end markets, with revenue expected to decline by 17.0% year-on-year in the first half of 2025, but maintaining a stable gross margin of 15.4% [3][16]. Financial Forecast and Valuation - Revenue projections for the company are 5.56 billion yuan in 2025, 5.90 billion yuan in 2026, and 6.34 billion yuan in 2027, with net profits expected to grow significantly [4][5]. - The company is expected to achieve a net profit of 1.6 billion yuan in 2025, with a corresponding PE ratio of 50x [4][5].