TONGWEI CO.,LTD(600438) 德邦证券·2024-05-12 08:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has experienced a significant decline in revenue and net profit in 2023, with a revenue of 139.10 billion yuan, down 2.33% year-on-year, and a net profit of 13.57 billion yuan, down 47.25% year-on-year [2][5] - The company maintains a strong position in the silicon material and battery sectors, with a focus on cost reduction and efficiency improvement [3][4] - The company is expected to recover in the coming years, with projected net profits of 2.68 billion yuan in 2024, 6.45 billion yuan in 2025, and 9.01 billion yuan in 2026, corresponding to PE ratios of 37.92X, 15.77X, and 11.29X respectively [5][7] Summary by Sections Market Performance - The company's stock has underperformed compared to the market, with a relative drop of 9.75% over one month and 20.50% over two months [2] Financial Performance - In 2023, the company achieved a total revenue of 139.10 billion yuan and a net profit of 13.57 billion yuan, with a significant decrease in profitability metrics [6] - The gross margin for 2023 was 26.4%, a decline from previous years, and the net profit margin was 13.1% [7] Business Segments - The silicon material segment saw a sales volume of 387,200 tons, a 50.79% increase year-on-year, but revenue decreased by 27.57% due to falling prices [3] - The battery segment achieved sales of 80.66 GW, a 68.11% increase year-on-year, with revenue from battery components reaching 693.72 billion yuan, up 29.60% [3][4] Future Outlook - The company is expected to enhance its production capacity, particularly in TNC batteries, with a projected capacity exceeding 100 GW by the end of 2024 [3] - The company is investing in new technologies and has made significant advancements in battery efficiency, with the latest products achieving conversion efficiencies above 26% [4]