Gelonghui, April 24, 丨 Open Source Securities Research Report indicates that Hesheng Silicon (603260.SH) achieved net profit of 1,003 billion yuan in the first quarter of 2023, down 51.11% from the previous year. Prices of industrial silicon and silicone have basically bottomed out, and prices are expected to gradually rebound as demand recovers. The company plans to invest in the construction of a “high-purity polysilicon project with an annual output of 200,000 tons”, a “photovoltaic module project with an annual output of 20 GW”, and an “ultra-thin high-transmission photovoltaic glass production project for new energy equipment with an annual output of 1.5 million tons” to further increase the photovoltaic industry chain. In anticipation that industrial silicon and silicone prices are expected to gradually rebound as demand recovers, Open Source Securities expects the company's net profit for 2023-25 to be 51.16/73.88/9.112 billion yuan respectively. The corresponding growth rates are 23%/23%/19% respectively, EPS is 4.33/6.25/7.71 yuan/share respectively, and the three-year CAGR is 22%. It is optimistic that the company will maintain its “buy” rating as a domestic industrial silicon and silicone leader, and the potential for downstream photovoltaics and other industry chains to expand downstream. The stock is currently reported at $74.03, with a total market value of 87.5 billion yuan.