差异化竞争优势显著，重点关注开工需求启动

Investment Rating - Buy rating with a target price of HKD 12.5, representing a 32% upside from the current price of HKD 8.48 [2][9] Core Investment Thesis - Significant differentiated competitive advantage with stable profit growth in 2023 [3][6] - Revenue increased by 4.1% to HKD 26,798.5 million in 2023, with net profit rising 4.6% to HKD 5,365.1 million [6][11] - Differentiated products accounted for over 47% of float glass production, up 10 percentage points from 2022 [6][11] - Capacity expansion from Chongqing production lines, Huarun relocation lines, and overseas Indonesia plant expected in 2024-2025 [6][11] Financial Health - Significant reduction in bank loans by HKD 5,342.0 million, lowering net gearing ratio to 13.3% [7][12] - Cash on hand stood at HKD 3,426.6 million as of December 31, 2023 [7][12] - Dividend payout ratio of 49.3% with a total dividend of 63.0 HK cents per share in 2023 [7][12] - Expected reduction in financial costs in 2024 due to lower bank loans and increased RMB-denominated loans [7][12] Industry and Market Dynamics - National float glass daily production reached 173,700 tons as of March 7, 2024, up 0.78% week-on-week [8][13] - Inventory levels increased by 6.32% week-on-week to 59.24 million weight cases, with inventory days rising to 24.5 days [8][13] - Supply-demand imbalance with increasing production and weak demand, leading to inventory accumulation [8][13] Valuation and Projections - Target price of HKD 12.5 based on 9.05x and 9x PE for 2024 and 2025, respectively [9][14] - Revenue growth projected at 1.3% in 2024 and 3.4% in 2025, reaching HKD 28,072 million [10] - Net profit expected to grow by 8.7% in 2024 and 0.7% in 2025, reaching HKD 5,833 million [10] - Dividend yield forecasted at 7.16% in 2024 and 7.21% in 2025 [10]