SINOLINK SECURITIES·2024-03-26 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [10]. Core Views - The company reported a revenue of 21.524 billion RMB in 2023, a year-on-year increase of 39.21%, and a net profit attributable to shareholders of 2.760 billion RMB, up 30.00% year-on-year [3]. - The company achieved a high production and sales rate of 101% in 2023, demonstrating strong alpha attributes despite challenges in the market [3]. - The company plans to accelerate capacity expansion in 2024, adding 9,600 tons/day, which is expected to significantly boost shipment volumes in the coming years [3]. - The supply-demand dynamics for photovoltaic glass are expected to improve, with a notable decrease in soda ash costs, leading to potentially better-than-expected profitability in 2024 [3]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 21.524 billion RMB, with a growth rate of 39.21% compared to 2022 [6]. - The net profit attributable to shareholders was 2.760 billion RMB, reflecting a growth rate of 30.00% year-on-year [6]. - The diluted earnings per share for 2023 was 1.17 RMB, with a projected increase to 1.79 RMB in 2024 [6]. Capacity and Production - The company’s total production capacity reached 20,600 tons/day by the end of 2023, with plans to increase this by 9,600 tons/day in 2024 [3]. - The production and sales rate was 101% in 2023, indicating efficient operations and inventory management [3]. Market Outlook - The report anticipates a continued tight supply-demand situation for photovoltaic glass in 2024, driven by improved component production schedules and limited new capacity additions in the industry [3]. - The decrease in soda ash prices is expected to enhance the company's profitability, with projections for net profit reaching 4.198 billion RMB in 2024 [3]. Valuation - The report adjusts the net profit forecasts for 2024-2026 to 4.198 billion RMB, 5.688 billion RMB, and 7.085 billion RMB respectively, with corresponding PE ratios of 16.1 and 9.5 for A/H shares in 2024 [3].