Jingu Caixun | Haitong International's research report stated that Xinte Energy (01799) achieved revenue of 30.75 billion yuan in 2023, a year-on-year decrease of 16.5%; net income attributable to shareholders was 4.35 billion yuan, a year-on-year decrease of 67.4%. In 2023, the company's comprehensive gross margin was 33.45%, a year-on-year decrease of 21.84 percentage points, mainly due to the significant decline in polysilicon prices.
The bank pointed out that considering the continuing oversupply in the industry, the low-priced silicon material will continue to affect the company's profitability. The bank expects the company's net income attributable to shareholders for 2024-2026 to be 1.703 billion yuan (a decrease of 70%)/2.110 billion yuan (a decrease of 77%)/245.4 billion yuan, respectively. The company benefits from its diversified business structure and increased proportion of N-type materials, and continues to develop new technologies. The bank gives the company a target price of HKD13.56 (a 28% reduction from the original target price of HKD18.80 for 2024), and maintains its 'outperform the market' rating.