First(603806) 长江证券·2025-04-18 02:12Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 19.147 billion yuan for 2024, a year-on-year decrease of 15.23%, and a net profit attributable to shareholders of 1.308 billion yuan, down 29.33% year-on-year [2][4]. - In Q4 2024, the company achieved a revenue of 3.973 billion yuan, a decline of 33.1% year-on-year and 9.92% quarter-on-quarter, with a net profit of 50 million yuan, down 88.18% year-on-year and 84.97% quarter-on-quarter [2][4]. - The company maintains a strong market position in the photovoltaic film sector, with a market share exceeding 50% despite a decrease in revenue and profit [8]. Summary by Sections Financial Performance - In 2024, the company generated 17.5 billion yuan from film sales, a decrease of 14.54% year-on-year, with a sales volume of 2.8 billion square meters, an increase of 24.98% year-on-year, and a gross margin of 14.72%, up 0.12 percentage points [8]. - The company reported a positive operating cash flow of 4.4 billion yuan in 2024, with a debt-to-asset ratio of 21.66%, indicating strong asset quality [8]. - The company declared a cash dividend of 678 million yuan for 2024, reflecting robust financial capability [8]. Business Segments - The electronic materials segment saw a significant increase in sales volume of photoresist dry film, reaching approximately 160 million square meters, a year-on-year growth of 37.97%, with a gross margin of 23.90%, up 0.61 percentage points [8]. - The functional film business reported sales of 12.96 million square meters, a year-on-year increase of 28.76%, successfully entering new markets [8]. - The backsheet business experienced a decline in sales volume of about 10 million square meters, down 33.50% year-on-year, primarily due to increased penetration of bifacial modules [8]. Future Outlook - The company anticipates an improvement in profitability levels in 2025 as second and third-tier companies exit the market, solidifying its leading position in the photovoltaic film industry [8]. - The electronic materials business is expected to benefit from the recovery in traditional consumer electronics demand and the emergence of new industries such as automotive intelligence and AI infrastructure [8]. - The company projects net profits attributable to shareholders of 1.9 billion yuan and 2.6 billion yuan for 2025 and 2026, respectively, corresponding to valuation multiples of 17 and 12 times [8].