Longi(SH:601012) Minsheng Securities·2024-05-06 02:30Investment Rating - The report maintains a "Recommended" rating for the company [2][6] Core Views - The company experienced a phase of performance pressure in 2023, with revenue of CNY 129.498 billion, a year-on-year increase of 0.39%, and a net profit attributable to shareholders of CNY 10.751 billion, a year-on-year decrease of 27.41% [1][2] - Despite high growth in shipments, profitability is under pressure due to declining product prices and technological iterations, leading to significant inventory and fixed asset impairment provisions totaling CNY 6.757 billion [1][2] - The company emphasizes differentiated competition and continuous product upgrades, with a focus on R&D and the introduction of market-leading products [1][2] - The company is steadily advancing capacity construction and deepening its global layout, with significant production capacity in silicon wafers, batteries, and modules [1][2] Summary by Sections Financial Performance - In 2023, the company achieved revenue of CNY 129.498 billion, with a net profit of CNY 10.751 billion, reflecting a decrease in profitability [1][2] - For Q4 2023, revenue was CNY 35.398 billion, down 16.33% year-on-year, with a net loss of CNY 0.942 billion [1] - In Q1 2024, revenue dropped to CNY 17.674 billion, a decrease of 37.59% year-on-year, with a net loss of CNY 2.350 billion [1] Shipment Growth - The company achieved a silicon wafer shipment of 125.42 GW in 2023, a year-on-year increase of 47.45%, maintaining its position as the global leader in monocrystalline silicon wafer shipments [1][2] - Module shipments reached 67.52 GW, with a year-on-year growth of 44.40% [1] Product Development - The company is committed to a differentiated competition strategy, focusing on R&D and launching advanced products, including the Hi-MO X6 module with a conversion efficiency of 23.3% [1][2] - New products such as the second-generation HPBC and "Tai Rui" silicon wafers are set to enhance efficiency and performance [1] Capacity Expansion - As of the end of 2023, the company had a self-owned silicon wafer capacity of 170 GW, battery capacity of 80 GW, and module capacity of 120 GW [1][2] - The company is expanding its overseas production capacity, with projects in Malaysia and Vietnam progressing as planned [1][2] Future Projections - Revenue projections for 2024-2026 are CNY 103.164 billion, CNY 126.975 billion, and CNY 152.690 billion, respectively, with net profits expected to be CNY 3.933 billion, CNY 7.857 billion, and CNY 11.342 billion [2][6]