TZE(002129) 光大证券·2024-08-29 11:10Investment Rating - The investment rating for TCL Zhonghuan is "Buy" (maintained) [2] Core Views - The company reported a significant decline in revenue and net profit for the first half of 2024, with revenue of 16.213 billion yuan, down 53.54% year-on-year, and a net profit attributable to shareholders of -3.064 billion yuan, down 167.53% year-on-year [2] - The company maintains its leading position in silicon wafer shipments despite facing pressure on profitability due to irrational price competition in the industry [2] - The company is focusing on technological innovation and process improvement to maintain cost leadership in the industry [2] - TCL Zhonghuan is cautiously but firmly advancing its globalization strategy, particularly in the Middle East and North America [2] Summary by Sections Financial Performance - In 2024H1, the company achieved a revenue of 16.213 billion yuan, a decrease of 53.54% year-on-year, and a net profit of -3.064 billion yuan, a decrease of 167.53% year-on-year [2] - In Q2 2024, revenue was 6.281 billion yuan, down 63.65% year-on-year, with a net profit of -2.184 billion yuan, down 195.64% year-on-year [2] - The silicon wafer segment generated a revenue of 10.432 billion yuan, down 61.31% year-on-year, with a gross margin decrease of 34.13 percentage points to -9.25% [2] Production Capacity and Market Position - The company increased its photovoltaic monocrystalline capacity to 190 GW and high-efficiency bifacial module capacity to 22 GW, with a shipment of approximately 62 GW of photovoltaic materials, maintaining a market share of 23.5% in silicon wafers, which is the highest in the industry [2] - The company’s N-type products achieved a monthly production lead of approximately 12.3% over the industry’s second-best, and the cost per watt is approximately 0.033 yuan/W lower than the second-best in the industry [2] Globalization Strategy - TCL Zhonghuan has partnered with Saudi Arabia's Public Investment Fund subsidiary RELC and Vision Industries to establish the largest overseas crystal wafer factory with an annual capacity of 20 GW and a total investment of approximately 2.08 billion USD [2] - The company plans to control Maxeon through a series of restructuring transactions, leveraging its patents and high-end brand to enhance its competitive advantage in North America [2] Profit Forecast - The profit forecast for 2024-2026 has been adjusted, with expected net profits of -4.249 billion yuan, 1.283 billion yuan, and 1.651 billion yuan, representing downward adjustments of 346%, 56%, and 61% respectively [2]