Gelonghui, May 13 | Zheshang Securities Research Report pointed out that the phased imbalance between supply and demand in the industrial chain affected performance, and the net profit of Tongwei Shares (600438.SH) 2024Q1 decreased by 109.15% year-on-year. Up to now, the company has a production capacity of 450,000 tons of high-purity crystalline silicon and 400,000 tons of production capacity under construction. According to the plan, the company efficiently promoted the construction of 200,000 tons of high-purity crystalline silicon projects in Yunnan and 200,000 tons in Inner Mongolia using the eighth-generation “Yongxiang Method”. Among them, the Yunnan project is expected to be put into operation in 2024Q2, and the Inner Mongolia project is expected to be put into operation in 2024Q3. At that time, the company's high-purity crystalline silicon production capacity will reach 850,000 tons. In 2023, the company promoted a further decline in many consumption indicators, and the average production cost of high-purity crystalline silicon products was reduced to less than 42,000 yuan/ton, far ahead of the industry average. The company is a leading manufacturer of photovoltaic polysilicon and cells, and the integrated layout of components is accelerating. Considering that the profitability of polysilicon, battery, and module products was lower than expected, the profit forecast for 2024-2025 was lowered to maintain the “buy” rating.