First(SH:603806) Bank of China Securities·2026-01-20 07:45Investment Rating - The investment rating for the company is "Accumulate" [1][5] Core Views - The company is a leader in photovoltaic encapsulation materials, maintaining a market share of approximately 50% in the photovoltaic film auxiliary materials sector. It offers a range of products including UVB films, light conversion films, and high-reflective back sheets, aimed at providing cost-effective encapsulation solutions for new technologies such as TOPCon and HJT [8] - The company is actively exploring new solutions for space photovoltaic applications, leveraging its existing technology in UV cutoff and conversion, as well as its proprietary PI material technology, which has already been commercialized in electronic materials [8] Financial Summary - The company’s projected revenue for 2025 is estimated at RMB 18,622 million, with a growth rate of -2.7%. By 2026, revenue is expected to increase to RMB 23,536 million, reflecting a growth rate of 26.4% [7] - The projected net profit for 2025 is RMB 1,029 million, with a significant rebound expected in 2026 to RMB 1,930 million, representing a growth rate of 87.6% [7] - The estimated earnings per share (EPS) for 2025 is RMB 0.39, with an increase to RMB 0.74 in 2026 and RMB 0.99 in 2027 [5][7] - The company maintains a price-to-earnings (P/E) ratio of 38.8 for 2025, which is expected to decrease to 20.7 in 2026 and further to 15.4 in 2027, indicating improving valuation metrics [5][7] Market Performance - The company's stock has shown an absolute return of 9.7% year-to-date, with a relative performance of 7.4% compared to the Shanghai Composite Index [2]