The company's revenue for 23 years was 5.196 billion yuan, +25.38% year over year; gross profit margin was 10.73%, -1.4pct year on year; net profit to mother -0.19 billion yuan, from profit to loss; net profit to mother -0.37%, -2.24pct year on year.
On a quarterly basis, the company's 23Q4 revenue was 1.15 billion yuan, -15.19% YoY, -19.82%; gross profit margin 15.18%, +3.82pct YoY, +5.19pct month-on-month; net profit to mother -55 million yuan; Net Profit to Mother -4.79%, -2.88pct yoy, -5.01pct month-on-month. 24Q1 revenue was 1.309 billion yuan, +7.13% YoY, +12.85%; gross profit margin 8.47%, -0.9pct YoY, -6.71pct; Net Profit to Mother -0.03 billion yuan; Net Profit to Mother -0.21%, -1.04pct YoY, +4.58pct YoY.
The expansion of photovoltaic glass production has led to a high increase in production and sales, and falling prices have put pressure on profits. In '23, the company's photovoltaic glass revenue was 3.77 billion yuan, +87.6% year over year; sales volume was 198 million square meters, +107.5% year over year; calculated average price/cost/gross profit of 19.0/16.5/2.5 yuan, -2.0/-1.1 yuan year-on-year. The company's production and sales volume increased, but the price of photovoltaic glass continued to fall. According to Zhuochuang, the average price of 2.0mm coated photovoltaic glass was 18.8/18.2/16.4 yuan/square meter for the whole year of 23Q4/24Q1, -1.7/-2.0/-3.6 yuan/square meter compared to -1.7/-2.0/-3.6 yuan/square meter, causing the company's profit pressure during the reporting period. The company actively promoted industrial chain extension and cost reduction. Three silicon-based projects in Anyang, Jiaozuo, and Xuchang were completed and put into operation in '23, which led to a decrease in unit costs and also improved the stability of raw material supply.
In terms of float glass, competition is intensifying, prices are falling, and profits are under pressure. In '23, the company's float revenue was 358 million yuan, -11.85% year over year; sales volume was 154,000 tons, +4.8% year over year; calculated the average price/cost/gross profit per ton was 2323/2521/-198 yuan, or -438/+190/ -628 yuan year on year. Mainly due to increased competition and falling prices in the ultra-white float glass market. At the same time, production costs have increased due to the company's product switching, and there has been a short-term loss in gross profit.
The target revenue for 24 years has increased steadily, and PV glass profits are expected to bottom out and recover. The company's planned sales revenue for 24 years was 5.5 billion yuan, +5.85% year-on-year. The price of photovoltaic glass has basically bottomed out. The price of 24/4/3 2.0mm coated glass increased by 2 yuan/square meter compared to last week. It is expected that subsequent profits will gradually recover.
Investment advice: The company is an established glass company with unique natural gas advantages. Photovoltaic glass production is rapidly expanding. At the same time, the company's diversified layout in high-end glass fields such as photothermal and pharmaceutical glass is progressing steadily. We expect the company's net profit to return to mother of 1.6/1.98/243 million yuan in 24-26, maintaining the “gain” rating.
Risk warning: The industry has overcapacity, downstream demand has fallen beyond expectations, and raw material prices have risen above expectations.