盈利触底，拐点已现

Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Views - The report indicates that the company's earnings have reached a bottom, and a turning point is now evident [5][6]. - The first quarter of 2024 saw a revenue of approximately 3.4 billion yuan, a year-on-year decrease of 8%, with a net profit attributable to shareholders of about 350 million yuan, down 62% year-on-year [5]. - The report highlights a significant recovery in sales volume, driven by a substantial drop in glass fiber prices, which fell by 24% year-on-year [5][6]. - The report emphasizes the importance of supply-demand changes in the glass fiber market, noting a recovery in both domestic and international demand [6]. Summary by Sections Financial Performance - In Q1 2024, the company reported a gross margin of approximately 20.1%, down 9.8 percentage points year-on-year and 5.7 percentage points quarter-on-quarter [5]. - The company’s inventory at the end of Q1 was about 4.35 billion yuan, a decrease from 4.53 billion yuan at the end of 2023 [5]. - The report projects that the company's net profit attributable to shareholders will be 2.6 billion yuan and 4.1 billion yuan for 2024 and 2025, respectively, corresponding to PE ratios of 18 and 12 times [6]. Market Dynamics - The report notes that the glass fiber industry is at a turning point, with a significant price increase due to recovering demand and a strategic shift among leading companies away from price wars [6]. - It is expected that the industry will see a slowdown in new supply, with an estimated increase of only 200,000 tons in 2024 [6]. - The report highlights that the recovery in demand is expected to come from exports, thermoplastics, wind power, and electronics [6]. Competitive Position - The report asserts that the leading companies in the industry have maintained their competitive edge, with the profit gap between leading and smaller firms stabilizing or even widening [6]. - The company is positioned to benefit from price increases in electronic fabrics and the emerging demand from photovoltaic frame requirements [6].