2025-08-14 14:48Summary of the Conference Call on Fulete (福莱特) Industry Overview - Industry: Photovoltaic Glass - Current Market Dynamics: The demand for photovoltaic glass remains resilient despite weak bidding demand, indicating strong price support in the photovoltaic glass segment [2][4][12]. Key Points - Price Dynamics: In August, inventory levels dropped rapidly, leading to a slight price increase. The nominal production capacity of domestic furnaces decreased by 17.5% year-on-year, with monthly output insufficient to meet global expectations, yet prices still increased by 0.5 yuan [2][12]. - Supply and Demand Outlook: The glass industry is expected to enter a supply-side adjustment phase, with leading companies like Fulete having advantages in capacity scale, cost, and technology. A significant turning point is anticipated in Q4 2025, but demand will remain far below supply until the end of 2027 [3][14]. Company Insights - Company Position: Fulete is the second-largest supplier of photovoltaic glass globally, actively expanding its overseas production capacity, particularly in Vietnam and Indonesia. The company has a planned total capacity of approximately 35,800 tons, a significant increase from the current 2,300 tons [2][15]. - Financial Performance: Fulete's revenue and net profit have shown growth from 2017 to 2023, but a decline in net profit is expected in 2024 due to slower global photovoltaic installation growth and intensified competition [6]. - Market Share: Fulete and Xinyi hold about 40% of the market share in the photovoltaic glass sector. The company’s early investment in quartz sand capacity stabilizes supply and impacts product quality [18]. Technological Trends - N-Type Technology: The photovoltaic industry has fully entered the N-type era, with bifacial component penetration rates increasing to between 70% and 95%, leading to higher glass demand [8][9]. - Component Efficiency: Despite the increase in bifacial rates, the actual power generation gain from the back side is less than 30%. However, the investment community remains willing to choose bifacial components due to their benefits in specific applications [10]. Competitive Landscape - Barriers to Entry: The competitive barriers in the photovoltaic glass market are primarily based on scale effects and technical experience. Fulete benefits from strong financial backing, customer relationships, and production cost advantages, allowing it to maintain stable operations during industry downturns [16][17]. - Future Market Outlook: After the current round of industry capacity clearing, leading companies' market shares are expected to increase further. Fulete's gross margin is significantly higher than that of other listed companies, making it a recommended investment [18]. Additional Considerations - Raw Material Price Fluctuations: Attention should be paid to the volatility of raw material prices, such as soda ash and natural gas, as they can significantly impact performance [18].