Daqo Energy(688303) 海通证券·2024-09-03 06:14Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The report indicates that the silicon material prices have reached a bottom, and the pressure from impairment losses is expected to significantly decrease. The company has adjusted its production load to better control costs and stabilize product prices [4][3] - The company achieved a revenue of 4.584 billion yuan in the first half of 2024, a year-on-year decrease of 50.84%, with a net profit attributable to the parent company of -670 million yuan. In Q2 2024, revenue was 1.602 billion yuan, down 64.14%, with a net profit of -1 billion yuan [3][5] Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of 4.584 billion yuan, down 50.84% year-on-year, and a net profit of -670 million yuan. Q2 2024 saw a revenue of 1.602 billion yuan, a 64.14% decline, with a net profit of -1 billion yuan and impairment losses of 781 million yuan due to inventory price declines [3][5] - The company’s cash investment was 9.912 billion yuan, and the balance of construction in progress increased to 9.565 billion yuan due to the completion of a 100,000-ton high-purity polysilicon project in Inner Mongolia [3] Production and Market Strategy - The company has adjusted its production schedule and is actively participating in controlling polysilicon supply. In H1 2024, the production of N-type monocrystalline silicon wafers exceeded 70%, with a total polysilicon output of 127,200 tons. The expected output for Q3 is between 43,000 to 46,000 tons, and the annual output forecast is adjusted to 210,000 to 220,000 tons [3][4] Price Trends and Market Outlook - The report suggests that polysilicon prices are stabilizing and entering a bottoming phase. As of late June 2024, polysilicon prices have begun to stabilize, with a notable increase in prices for N-type silicon wafers in August [4] - The report forecasts that from 2024 to 2026, the company's net asset per share will be 19.34, 19.65, and 20.46 yuan, respectively, with corresponding price-to-book ratios of 0.91, 0.89, and 0.86 [4][5]