Longi(601012) 太平洋·2024-11-05 11:16Investment Rating - The report maintains a "Buy" rating for Longi Green Energy (601012) [1][8] Core Views - Longi Green Energy's Q3 2024 report shows a narrowing of losses, with a significant focus on maintaining leadership in BC technology [1][2] - The company achieved a revenue of 58.593 billion yuan for the first three quarters of 2024, a year-on-year decrease of 37.73%, and a net profit attributable to shareholders of -6.505 billion yuan, a year-on-year decrease of 155.62% [2][4] - In Q3 2024, the company reported a revenue of 20.064 billion yuan, down 31.87% year-on-year and down 3.79% quarter-on-quarter, with a net profit of -1.261 billion yuan, a year-on-year decrease of 150.14% and a quarter-on-quarter decrease of 56.40% [2][4] - The company’s Q3 gross margin reached 8.6%, an increase of 1.99 percentage points from Q2, indicating improved operational efficiency [2][4] Summary by Sections Financial Performance - For the first nine months of 2024, Longi Green Energy's silicon wafer shipments totaled 82.80 GW, a year-on-year decrease of 4.22%, with external sales of 35.03 GW [2][4] - The company sold 4.16 GW of monocrystalline batteries and 51.23 GW of modules, with BC module sales reaching 13.77 GW, a year-on-year increase of 17.70% [2][4] - Q3 shipments included 38.37 GW of silicon wafers and 21.39 GW of battery modules, showing quarter-on-quarter growth [2][4] Technology and Market Position - Longi Green Energy continues to lead in BC technology, with expectations for accelerated penetration rates [2][4] - The company has made significant breakthroughs in HPBC 2.0 technology, achieving a battery production efficiency of 26.6% [2][4] - New products based on high-quality Tai Rui silicon wafers and HPBC 2.0 technology are set to launch in 2025, with expected shipments of BC second-generation products reaching 30 GW [2][4] Market Outlook - The company’s market share in the U.S. has declined, with approximately 1.6 GW shipped in the first three quarters of 2024, but is expected to stabilize as production capacity increases at the U.S. joint venture factory [2][4] - Longi Green Energy is positioned as a leader in the photovoltaic industry, with anticipated recovery in profitability due to technological advancements and a bottoming out of supply chain prices [2][4] - Revenue projections for 2024-2026 are 80.186 billion yuan, 103.846 billion yuan, and 132.578 billion yuan, respectively, with net profits expected to be -7.6 billion yuan, 5.041 billion yuan, and 8.369 billion yuan [2][4]