Guolian Securities·2024-03-26 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) with a current price of 29.13 CNY and a target price of 40.69 CNY [1]. Core Insights - The company reported a significant increase in revenue and profit for 2023, achieving an operating income of 21.52 billion CNY, a year-on-year growth of 39.2%, and a net profit attributable to shareholders of 2.76 billion CNY, up 30.0% year-on-year [2][3]. - The sales volume of photovoltaic glass reached 1.22 billion square meters, representing a year-on-year increase of 49.5%, with a stable gross profit margin of 21.8% for the year [4]. - The company is expected to see a rebound in photovoltaic glass prices due to improved downstream demand and inventory clearance in the industry [3]. Financial Performance - The company’s revenue projections for 2024-2026 are 27.26 billion CNY, 35.82 billion CNY, and 43.70 billion CNY, with year-on-year growth rates of 26.7%, 31.4%, and 22.0% respectively [5]. - The net profit forecasts for the same period are 3.99 billion CNY, 5.11 billion CNY, and 6.41 billion CNY, with growth rates of 44.5%, 28.2%, and 25.4% respectively [5]. - The earnings per share (EPS) are projected to be 1.70 CNY, 2.17 CNY, and 2.73 CNY for 2024, 2025, and 2026, respectively [5]. Market Position and Capacity Expansion - The company holds a leading position in the photovoltaic glass industry, with a total production capacity of 20,600 tons per day (t/d) at the end of 2023, accounting for approximately 22% of the industry [4]. - Plans are in place to increase production capacity to 30,200 t/d by the end of 2024, which would raise its market share to 27%, an increase of 5 percentage points year-on-year [4]. - The company is also expanding its overseas production capacity with plans to build two 1,600 t/d photovoltaic glass furnaces in Indonesia [4].