TONGWEI CO.,LTD(SH:600438) Changjiang Securities·2025-11-11 02:14Investment Rating - The investment rating for Tongwei Co., Ltd. is "Buy" and is maintained [7] Core Views - In the first three quarters of 2025, Tongwei Co., Ltd. achieved revenue of 64.6 billion yuan, a year-on-year decrease of 5.38%. The net profit attributable to shareholders was -5.27 billion yuan, down 32.64% year-on-year. In Q3 2025, the company reported revenue of 24.09 billion yuan, a year-on-year decline of 1.57% and a quarter-on-quarter decrease of 1.97%. The net profit attributable to shareholders was -315 million yuan, an increase of 62.69% year-on-year and an increase of 86.68% quarter-on-quarter [2][5] Financial Performance - The gross profit margin for the first three quarters of 2025 was 2.74%, a decrease of 4.80 percentage points year-on-year. In Q3 2025, the gross profit margin was 7.23%, down 1.67 percentage points year-on-year but up 5.25 percentage points quarter-on-quarter [12] - Operating cash flow turned significantly positive, reaching 4.78 billion yuan in Q3 2025, bringing the total for the first three quarters to 2.83 billion yuan [12] - The company reversed asset impairment losses of 247 million yuan in Q3 2025, mainly due to price increases in the industry chain [12] Business Segments - In the silicon material segment, prices have shown significant recovery, with the average transaction price for multi-crystalline silicon n-type raw materials at 53,200 yuan per ton as of October 22, 2025. The company expects an increase in silicon material shipment volume due to improved operating rates [12] - In the battery and module segment, despite a decrease in shipment volume in Q3 2025, the overall demand remains subdued. The company anticipates that battery and module prices will continue to be a drag on profits [12] - Other business segments, such as agriculture and power stations, are expected to contribute positively during the traditional peak seasons in Q2 and Q3 [12] Market Position - The ongoing progress in the photovoltaic industry is expected to stabilize silicon material prices, and as domestic demand resumes, module prices may gradually increase, leading to a recovery in battery and module profitability. Tongwei has established a competitive advantage across multiple segments of the photovoltaic industry chain, which is expected to be fully realized after the cyclical turning point [12]