Jinwu Financial News | According to Guojin Securities Research, the decline in Xinyi Solar (00968)'s performance was mainly due to pressure on prices and profits, and also due to glass production line and inventory impairment. The price of photovoltaic glass products continued to fall in the second half of the year. According to Zhuochuang information, the average price of 2.0mm photovoltaic glass in the second half of the year (13.7/12.0 in the third and fourth quarters respectively) was 17.0 yuan/square meter in the first half of the year. It is estimated that the company started losing money in August, and losses continued to deepen thereafter. In the context of profit pressure, the company began cold repair of existing kilns in July. In the third and fourth quarters, 2,100/2,900 tons of daily melting were prepared. The company calculated impairment preparations for photovoltaic glass production lines that had been suspended or were undergoing maintenance and replacement. At the same time, preparations for inventory impairment were calculated, which affected performance to a certain extent.
The bank said that based on its current judgment on the price and profit of the photovoltaic glass industry, the company's 2024-2026 net profit forecast was adjusted to HK$1.08, 2.62, and 3.55 billion. The current stock price is only 0.9 times PB, and 11/8 times PE for 25-26. The inflection point in the price of photovoltaic glass can be expected. The company's share of production capacity is the highest, there is room for future growth, and the purchase rating and key recommendations are maintained.
