Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company reported a revenue of HKD 11.8 billion for H1 2024, a year-on-year decrease of 6% and a half-on-half decrease of 17%. The net profit attributable to shareholders was HKD 2.7 billion, reflecting a year-on-year increase of 27% but a half-on-half decrease of 15%. Overall, the performance met expectations [5][6] - The automotive glass segment showed strong growth, while the float glass and architectural glass segments were the main revenue drags, compounded by the negative impact of RMB depreciation. The company expects its automotive glass annual production capacity to reach 29.46 million pieces by the end of 2024, a year-on-year increase of 7% [5][6] - The company’s gross profit margin improved significantly, with the overall gross margin at 34.3% and net profit margin at 23.1%, both showing year-on-year increases. The float glass and architectural glass margins faced pressure due to weak demand, while automotive glass profitability continued to improve due to marginal cost improvements [5][6] Summary by Sections Financial Performance - For H1 2024, the company’s revenue from float glass, automotive glass, and architectural glass was HKD 7 billion, HKD 3.3 billion, and HKD 1.6 billion respectively, with year-on-year changes of 13%, 9%, and -3% [5][6] - The company’s comprehensive gross margin and net profit margin were 34.3% and 23.1%, respectively, with year-on-year increases of 5.3 percentage points and 6.1 percentage points [5][6] Future Outlook - The company is expected to achieve revenues of HKD 27.7 billion, HKD 28.8 billion, and HKD 30.2 billion for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 3%, 4%, and 5% [5][6] - The net profit attributable to shareholders is projected to be HKD 5.9 billion, HKD 6.5 billion, and HKD 7.2 billion for the same years, with year-on-year growth rates of 9%, 12%, and 10% [5][6]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 11.57, reflecting a 13.5% decrease from the previous target price [3][10]. Core Views - The company reported a net profit of HKD 2.73 billion for 1H24, representing a year-on-year increase of 27.1%, exceeding consensus expectations by 11.7%. This growth was driven by a significant reduction in costs, which fell by 13.4% year-on-year, outpacing a 6.4% decline in revenue [3][4]. - Despite the strong performance in the first half of 2024, the company is expected to face challenges in profitability in the second half due to declining float glass prices and ongoing supply-demand imbalances [3][5]. - The company has optimized its product mix, with high-margin automotive glass revenue increasing its share to 27.6%, while float glass revenue decreased to 59.2% [4][6]. Summary by Sections Financial Performance - The company achieved a net profit of HKD 2.73 billion in 1H24, up 27.1% year-on-year, with costs down 13.4% and revenues down 6.4% [3]. - The revenue from float glass fell by 12.9% to HKD 6.99 billion, while automotive glass revenue rose by 8.9% to HKD 3.26 billion [4]. - The gross margin for float glass was 28.4%, reflecting a year-on-year increase of 6.8 percentage points [4]. Market Conditions - The average price of float glass has decreased by 25.5% since the beginning of 2024, with high inventory levels and weak orders from downstream processing companies contributing to ongoing price pressures [5]. - The report anticipates continued competitive pressures in the float glass market into 2H24, with prices expected to remain under pressure until significant capacity exits occur [5][6]. Valuation and Outlook - The company is currently trading at a price-to-book ratio of 0.9x, which is 10.7% lower than the previous cycle's bottom, indicating a favorable valuation [6]. - Despite anticipated challenges in profitability for 2H24, the report suggests that the company's valuation remains attractive due to its superior profitability compared to peers and the cyclical nature of the current industry challenges [6].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 11,807.2 million, a decrease of 6.4% compared to HKD 12,621.2 million in the same period of 2023[2] - Profit attributable to equity holders of the company increased by 27.1% to HKD 2,729.9 million, up from HKD 2,147.9 million year-on-year[2] - Basic earnings per share rose by 24.0% to HKD 64.6 cents, compared to HKD 52.1 cents in the previous year[2] - The company reported a net profit of HKD 2,739.4 million for the period, compared to HKD 2,156.1 million in the previous year[9] - The total comprehensive income for the six months ended June 30, 2024, was HKD 1,495,078, a decrease from HKD 327,121 in the previous year[12] - The company reported a profit for the period of HKD 2,729,916 for the six months ended June 30, 2024, compared to HKD 2,147,890 for the same period in 2023[12] - The company reported a profit attributable to equity holders of HKD 2,729,916 for the six months ended June 30, 2024, an increase of 26.9% from HKD 2,147,890 in 2023[57] - The company’s net profit increased by 27.1% in the first half of 2024, driven by higher sales of automotive and construction glass products, lower production costs of float glass, and increased profit contributions from Xinyi Solar[93] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 31.0 cents per share, up from HKD 26.0 cents in the prior period[2] - The interim dividend declared for the first half of 2024 is HKD 0.31 per share, compared to HKD 0.26 per share in the first half of 2023[88] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 51,078.5 million, compared to HKD 50,813.4 million at the end of 2023[7] - Total liabilities increased to HKD 15,224.2 million from HKD 14,947.6 million at the end of 2023[7] - Cash and cash equivalents at the end of June 30, 2024, were HKD 1,337,493, down from HKD 3,778,263 at the end of June 30, 2023[13] - The company’s total liabilities decreased to HKD 8,767,770,000 as of June 30, 2024, from HKD 8,198,748,000 as of December 31, 2023[34] - Total bank borrowings amounted to HKD 7,100,200,000 as of June 30, 2024, with a net debt-to-equity ratio of 15.2%, up from 13.3% at the end of 2023[85] Cash Flow and Investments - The net cash flow from operating activities for the six months ended June 30, 2024, was HKD 2,840,299, compared to HKD 2,009,564 for the same period in 2023[13] - The company incurred a net cash outflow from investing activities of HKD 1,832,227 for the six months ended June 30, 2024[13] - Cash flow from operating activities was HKD 2,143,800,000 in the first half of 2024, up from HKD 1,417,600,000 in the same period of 2023[84] Operational Highlights - Total revenue from external customers reached 11,807,194, with contributions from float glass (6,985,818), automotive glass (3,260,369), and architectural glass (1,561,007) [21] - The company reported a decrease in glass sales, with float glass sales at HKD 6,985,818, down from HKD 8,019,562 in the previous year[24] - The automotive glass business saw revenue growth due to new customer acquisition efforts in both domestic and overseas markets[70] - The construction glass sales volume increased due to strong demand for energy-efficient low-emission glass, supported by the company's good reputation and advanced coating materials[94] Cost Management - The total expenses for cost of sales, selling and promotional costs, and administrative expenses for the six months ended June 30, 2024, is HKD 9,552,060, down from HKD 10,731,222 in the previous year[49] - Selling and promotional expenses decreased by 8.8% to HKD 611,700,000, attributed to reduced transportation and international freight costs[75] - Administrative expenses increased by 7.4% to HKD 1,179,800,000, mainly due to higher employee costs and R&D expenditures[75] Research and Development - The company continues to invest in R&D for new materials, coatings, and advanced float glass designs, which have improved production efficiency and reduced carbon emissions[95] - The company is developing new glass products for advanced driver-assistance systems (ADAS), head-up displays (HUD), and other value-added components, with plans to launch them at the appropriate time[94] Market Outlook and Strategy - The group maintains a cautious optimism regarding the float glass market in the second half of 2024, supported by government measures to ensure property project completions and deliveries[99] - The group is actively exploring acquisition and expansion opportunities in China and Southeast Asia to enhance market coverage and reduce production costs[99] - The company plans to continue expanding its market presence in Greater China and other countries, focusing on new product development and technology advancements[25] Corporate Governance - The announcement is published on the Hong Kong Stock Exchange website and the company's website[104] - The executive directors include Dr. Li Hsien-Yi, Dato' Wira D.C.S.M, and others[104] - The chairman and executive director is Dr. Li Hsien-Yi[104] - The document includes a list of directors and their titles[104]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 13, representing a potential upside of 32.9% from the current price of HKD 9.78 [2][4]. Core Insights - The company demonstrates strong operational resilience and continues to benefit from a marginal recovery in the real estate sector. Revenue and profit are stable, with a year-on-year revenue growth of 4.1% to HKD 26.8 billion in 2023. The gross margin slightly decreased by 1.6 percentage points to 32.1% due to high costs in the first half of the year, but improved in the second half [2][5]. - The company is expected to maintain a positive earnings trend, with projected net profits of HKD 6.6 billion, HKD 7.3 billion, and HKD 7.8 billion for 2024-2026. The company has a stable dividend payout ratio of 49% and a low net debt-to-equity ratio of 13.3% [2][6]. Financial Performance Summary - For 2023, the company's revenue from float glass, automotive glass, and architectural glass was HKD 17.5 billion, HKD 6 billion, and HKD 3.3 billion, respectively. The gross margins for these segments were 32.1%, 34.8%, and 34.8% [2][5]. - The company reported a net profit of HKD 5.4 billion for 2023, with a significant increase of 50% in the second half of the year [2][6]. - The company’s cash position is strong, with HKD 3.4 billion in cash on hand, supporting its high dividend capability [2][5]. Market Outlook - The supply-demand situation in the industry is expected to improve marginally, with a forecasted balance in the float glass market as new capacity additions slow down and maintenance activities increase. The report anticipates a stable recovery in glass prices driven by policy stimuli in the real estate sector [2][6]. - The report projects that the average price of float glass will see a slight increase in the first quarter of 2024, with expectations of stabilization and recovery in the second half of the year [2][5].

目錄 1 信義玻璃控股有限公 司 I 二零二三年年報 2 公司資料 4 主席報告 10 管理層討論及分析 17 董事及高級管理層履歷 22 企業管治報告 33 董事會報告 57 獨立核數師報告 63 綜合資產負債表 65 綜合收益表 66 綜合全面收益表 67 綜合權益變動表 69 綜合現金流量表 71 綜合財務報表附註 182 財務概要 公司資料 執行董事 李賢義博士（銀紫荊星章）（主席） ø~ 拿督威拉董清波 D.C.S.M （副主席） 丹斯里拿督董清世 P.S.M, D.M.S.M（太平紳士） （行政總裁） <ø 李聖根先生 非執行董事 李清懷先生 施能獅先生 李清涼先生 吳銀河先生 獨立非執行董事 楊紹信博士（太平紳士） *ø< 林廣兆先生（金紫荊星章） #+< 王則左先生 #<ø 陳傳華博士# 財務總監兼公司秘書 劉錫源先生，FCPA，AICPA 註冊辦事處 Windward 3, Regatta Office Park PO Box 1350, Grand Cayman, KY1-1108 Cayman Islands 中國主要營業地點 中國安徽省蕪湖市 蕪湖經濟技術開發區 信義路1號 信義玻璃工 ...

公司研究 | 动态跟踪 信义玻璃 00868.HK 买入（维持） 地产竣工修复，经营呈现韧性 股价（2024年04月19日） 7.82港元 目标价格 9.86港元 52周最高价/最低价 14.68/6.01港元 信义玻璃业绩公告点评 总股本/流通H股（万股） 422,454/422,454 H股市值（百万港币） 33,036 核心观点 国家/地区 中国 行业 建材 ⚫ 事件：信义玻璃发布 2023 年业绩公告，公司 2023 年年度实现营业收入 275 亿港 报告发布日期 2024年04月21日 元，同增5.7%，实现归母净利润54亿港元，同增4.6%。 1周 1月 3月 12月 ⚫ 受益于国内地产竣工推进，业绩恢复性增长。2023 年，得益于保交楼等政策的推 绝对表现% -8.11 -10.63 11.08 -44.55 动，我国房屋竣工面积达10亿平方米，同增17.0%。2023初，地产竣工延续22年 相对表现% -5.13 -8.78 5.1 -24.21 颓势，浮法玻璃需求疲软，价格仍然承压。但此后需求回暖，价格提升，企业盈利 恒生指数% -2.98 -1.85 5.98 -20.34 逐步增长。据商 ...

Investment Rating - Buy rating with a target price of HKD 12.5, representing a 32% upside from the current price of HKD 8.48 [2][9] Core Investment Thesis - Significant differentiated competitive advantage with stable profit growth in 2023 [3][6] - Revenue increased by 4.1% to HKD 26,798.5 million in 2023, with net profit rising 4.6% to HKD 5,365.1 million [6][11] - Differentiated products accounted for over 47% of float glass production, up 10 percentage points from 2022 [6][11] - Capacity expansion from Chongqing production lines, Huarun relocation lines, and overseas Indonesia plant expected in 2024-2025 [6][11] Financial Health - Significant reduction in bank loans by HKD 5,342.0 million, lowering net gearing ratio to 13.3% [7][12] - Cash on hand stood at HKD 3,426.6 million as of December 31, 2023 [7][12] - Dividend payout ratio of 49.3% with a total dividend of 63.0 HK cents per share in 2023 [7][12] - Expected reduction in financial costs in 2024 due to lower bank loans and increased RMB-denominated loans [7][12] Industry and Market Dynamics - National float glass daily production reached 173,700 tons as of March 7, 2024, up 0.78% week-on-week [8][13] - Inventory levels increased by 6.32% week-on-week to 59.24 million weight cases, with inventory days rising to 24.5 days [8][13] - Supply-demand imbalance with increasing production and weak demand, leading to inventory accumulation [8][13] Valuation and Projections - Target price of HKD 12.5 based on 9.05x and 9x PE for 2024 and 2025, respectively [9][14] - Revenue growth projected at 1.3% in 2024 and 3.4% in 2025, reaching HKD 28,072 million [10] - Net profit expected to grow by 8.7% in 2024 and 0.7% in 2025, reaching HKD 5,833 million [10] - Dividend yield forecasted at 7.16% in 2024 and 7.21% in 2025 [10]

证券研究报告 公 2024年03月11日 司 报 告 信义玻璃(00868) 行 业： 建筑材料/玻璃玻纤 │ 港 投资评级： 买入（首次） 股 当前价格： 9.48港元 23H2 浮法景气改善，业绩增长韧性或被低估 - 公 目标价格： 13.87港元 司 年 公司公告23年全年业绩，23年收入268亿港元，同比+4%；归母净利润54 基本数据 报 亿港元，同比+5%。其中23H2收入142亿港元，同比+17%，环比+12%；归 点 总股本/流通股本(百万股) 4,222.55/4,222.55 母净利润32亿港元，同比+77%，环比+50%。 评 流通市值(百万港元) 40,029.73  23H2收入增长动能强劲，受益浮法玻璃需求景气度边际较好改善 每股净资产(元) 7.66 分业务，23 年公司浮法玻璃/汽车玻璃/建筑玻璃收入分别 175/60/33 亿港 元，同比分别+5%/-2%/+9%；其中，23H2分别94/30/17亿港元，同比分别 资产负债率(%) 38.51 +28%/-5%/+9%，环比分别+18%/-0%/+8%。保交楼等积极政策支撑竣工需求 一年内最高/最低(港元) 15.32/6 ...

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 8.06 [2][4] Core Views - The company's profitability improved significantly in H2 2023, driven by policy support for property delivery and cost reductions [6] - Revenue grew 4.1% YoY to HKD 26.8 billion in 2023, with net profit increasing 4.6% YoY to HKD 5.37 billion [6] - H2 2023 revenue rose 17.2% YoY to HKD 14.18 billion, with net profit surging 76.6% YoY to HKD 3.22 billion [6] - The company declared a dividend of 63 HK cents per share, representing a payout ratio of 49% [6] Financial Performance - Float glass revenue in H2 2023 reached HKD 9.45 billion, up 17.8% QoQ and 28.4% YoY [6] - Automotive glass revenue declined 1.6% YoY to HKD 5.98 billion in 2023, with gross margin dropping 2.4ppt to 47.9% [6] - Building glass revenue grew 8.9% YoY to HKD 3.35 billion in 2023, though gross margin fell 5.8ppt to 33.4% [6] - The company reduced sales and administrative expenses by HKD 50 million and HKD 13 million respectively in 2023 [6] Industry Outlook - Short-term demand remains resilient due to property completion needs, while low raw material costs support profitability [6] - The company is expanding overseas capacity in Malaysia and Indonesia, while acquiring domestic competitors to strengthen its market position [6] - Revenue is forecast to decline 0.2% in 2024 to HKD 26.75 billion, with net profit expected to grow 8.9% to HKD 5.84 billion [6] Valuation - The stock trades at 5.7x 2024E P/E and 0.86x P/B, with a potential dividend yield of 8.5% [6] - EPS is projected to be HKD 1.41 in 2024, up from HKD 1.29 in 2023 [5][8]

Investment Rating - Maintains an "Overweight" rating for the company [1][3] Core Views - The company achieved a net profit attributable to shareholders of HKD 5.37 billion in 2023, meeting expectations [1] - Revenue for 2023 was HKD 26.8 billion, a year-on-year increase of 4.1%, with net profit attributable to shareholders increasing by 4.6% year-on-year [1] - Forecasts net profit attributable to shareholders for 2024-2026 to be HKD 6.3 billion, HKD 6.8 billion, and HKD 7.2 billion respectively [1] - The target price is set at HKD 10.45, with a 2024 PE ratio of 7x based on comparable company valuations [1] Financial Performance - Float glass revenue in 2023 was HKD 17.5 billion, a year-on-year increase of 5.3%, with gross profit of HKD 4.6 billion and a gross margin of 26.5% [1] - Automotive glass revenue in 2023 was HKD 5.98 billion, a year-on-year decrease of 1.6%, with a gross margin of 47.9%, down 2.4 percentage points year-on-year [1] - Architectural glass revenue in 2023 was HKD 3.35 billion, a year-on-year increase of 8.9%, with a gross margin of 33.4% [1] - The company's revenue for 2023 was HKD 26.8 billion, with a net profit of HKD 5.38 billion, representing a year-on-year increase of 4.56% [2] Operational Highlights - Float glass profitability improved in the second half of 2023, with a gross margin exceeding 30% [1] - The company's float glass production capacity expanded with the ignition of new production lines in Yingkou and Chongqing in 2023, and further capacity increases are expected from the Jiangmen renovation line and overseas Indonesia production line in 2024-2025 [1] - The company remains the only player in the industry with capacity expansion [1] - Automotive glass profitability is expected to remain stable due to the company's strong pricing power in the aftermarket and its strategic construction of automotive glass processing lines in Malaysia and Indonesia [1] - Architectural glass revenue and profitability improved quarter-on-quarter, indicating a divergence in order-taking capabilities between large manufacturers and small processors [1] Shareholder and Dividend Information - Core management and shareholders have continued to increase their holdings since the second half of 2023 [1] - The company maintains a high dividend payout ratio of 49%, with dividend yields of 8% and 9% for 2023 and 2024 respectively [1] Market and Valuation - The current stock price is HKD 8.00 as of March 1, 2024 [3] - The 52-week stock price range is HKD 6.18 to HKD 16.28 [4] - The current market capitalization is HKD 33.78 billion [4]