Gelonghui, May 28 | Western Securities Research Report pointed out that falling silicon prices are putting pressure on performance, and the cost of contrarian expansion has a competitive advantage. Tongwei Co., Ltd. (600438.SH) achieved annual revenue of 139.104 billion yuan in 23, -2.33% year-on-year, and net profit to mother of 13.574 billion yuan, or -47.25% year-on-year. In the face of low silicon prices, the company chose to buck the trend and expand. By the end of 2023, the company had a production capacity of 450,000 tons of silicon, and it is expected that 400,000 tons of additional silicon production capacity will be put into operation in 2024. The bank believes that the main reason for the company's contrarian expansion in silicon materials is that the company's costs are leading compared to the industry. In 2023, the company promoted a further decline in many consumption indicators, and the average production cost has dropped to 42,000 yuan/ton. With the gradual improvement of the company's integrated layout, it is believed that the company's valuation is expected to receive a premium, changing the original valuation system from a pure cyclical perspective. Give it a “buy” rating.