Report Summary 1. Investment Rating No investment rating information is provided in the report. 2. Core View - As the National Day holiday approaches, the production and sales of the photovoltaic glass industry are weakening, and the price of photovoltaic glass before the holiday is expected to remain stable. Although the cost side has weakened and the profitability of the industry has improved, there are potential risks of increased supply and reduced demand. [1][2][3][7] 3. Section Summaries 3.1 Photovoltaic Glass Weekly Outlook - Supply: The supply side remained stable last week with no production line changes. The in - production capacity was 88,780 tons per day, and the capacity utilization rate was 68.52%, both remaining unchanged from the previous week. A 1,200 - ton - per - day production line is expected to be ignited this week. [1][7][11] - Demand: The production and sales of photovoltaic glass manufacturers showed signs of weakening last week. The previous supply - short situation has eased as downstream enterprises are preparing for the National Day holiday shutdown. [1][7][19] - Inventory: The overall decline in inventory continued to narrow last week, and the inventory of many enterprises remained stable. It is expected that the industry inventory will turn from decreasing to increasing this week due to the rising supply and expected reduction in orders. [1][7][22] - Cost and Profit: The profitability of the photovoltaic glass industry further improved last week due to the weakening cost side, with the current industry gross margin at about 3.03%. [2][7][25] 3.2 Domestic Photovoltaic Glass Industry Chain Data Overview - **Spot Price**: As of September 19, the mainstream price of 2.0mm coated photovoltaic glass was 13 yuan per square meter, and that of 3.2mm coated was 21 yuan per square meter, both remaining unchanged from the previous week. [8] - **Supply End**: The supply side was stable last week. The in - production capacity was 88,780 tons per day, and the capacity utilization rate was 68.52%, both unchanged. A 1,200 - ton - per - day production line is expected to be ignited this week. [11] - **Demand End**: The production and sales of manufacturers weakened last week. The previous supply - short situation was mainly due to unshipped August orders and remaining September orders, which has now eased as downstream prepares for the holiday. [19] - **Inventory End**: The overall decline in inventory narrowed last week, and many enterprises' inventory was stable. Inventory is expected to increase this week due to supply increase and order reduction. [22] - **Cost - Profit End**: The industry's profitability improved last week with a gross margin of about 3.03% due to weakening costs. [25] - **Trade End**: From January to July 2025, China's photovoltaic glass export volume increased by 13.8% compared with the same period in 2024, and the export end remains prosperous. [33]

Investment Rating - The report maintains a "Recommended" rating for the company [5] Core Views - The company experienced significant revenue and profit declines in H1 2025, with revenue at 7.737 billion yuan, down 27.66% year-on-year, and net profit at 261 million yuan, down 82.58% year-on-year [1] - The photovoltaic glass industry is facing a temporary oversupply, leading to lower prices and profitability pressures. The average price of 2.0mm photovoltaic glass in H1 2025 was 12.88 yuan per square meter, a decrease of 26.25% year-on-year [2] - A price increase in photovoltaic glass is expected in September 2025, which may help restore profitability as production cuts and reduced inventory improve supply-demand dynamics [2] - The company has advantages that may help it navigate through the cycle, including a current production capacity of 16,400 tons per day and plans for new projects in Indonesia [3] - Revenue projections for 2025-2027 are 15.347 billion yuan, 18.384 billion yuan, and 23.542 billion yuan, with corresponding growth rates of -17.9%, 19.8%, and 28.1% [3] Summary by Sections Financial Performance - In H1 2025, the company reported revenue of 7.737 billion yuan, a decline of 27.66% year-on-year, and a net profit of 261 million yuan, down 82.58% year-on-year [1] - For Q2 2025, revenue was 3.658 billion yuan, a decrease of 26.41% year-on-year and 10.33% quarter-on-quarter, with a net profit of 155 million yuan, down 79.02% year-on-year [1] Industry Analysis - The photovoltaic glass market is currently experiencing a phase of oversupply, leading to price declines and profitability challenges for companies in the sector [2] - The average price of photovoltaic glass has decreased significantly, impacting revenue and profit margins [2] Future Outlook - The company anticipates a recovery in profitability due to expected price increases in the photovoltaic glass market starting in September 2025 [2] - The company is strategically positioned with a strong market share and plans for international expansion, which may enhance its competitive advantage [3] - Forecasted revenues for 2025-2027 indicate a potential recovery, with significant growth expected in 2026 and 2027 [3][4]