Jinwu Financial News | According to Oriental Wealth Securities Research, Xinyi Solar (00968)'s comprehensive revenue reached a record high in 2023, an increase of 29.6% to HK$26.629 billion. In 2023, the daily melting capacity of the company's photovoltaic glass reached 25,800 tons, an increase of 6,000 tons over the beginning of the year, driving a significant increase in revenue. The gross margin of 23H2 increased compared to 23H1: the gross margin of the PV glass division increased from 15.2% in the first half of '23 to 26.4% in the second half of '23 due to higher average selling prices, reduced cost pressure, and improved operational efficiency.
The bank believes that the PV glass supply and demand pattern is good in the photovoltaic industry, and it is expected to take the lead in breaking out of the bottom of the industry. Xinyi Solar is a leader in the photovoltaic glass industry. Although its stock price has rebounded a lot since February, the bank continues to be optimistic that under the conditions of tight supply policies, the oligarchs are expected to maintain a reasonable return on capital in the medium to long term, and it is not ruled out that PV demand exceeds expectations, bringing about high phased profit elasticity.
The bank said that the company is a global leader in photovoltaic glass, the industry pattern is expected to be repaired, and the company's gross margin is expected to pick up. The bank estimates that the company's net profit from 2024-2026 will be HK$52/64/7.1 billion, respectively, and the corresponding PE will be 10/8/7 times, respectively. It was covered for the first time, giving it an “increase in wealth” rating.