Zhuzhou Kibing (601636) 华泰证券·2025-04-25 11:00Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 6.90 [8][9]. Core Views - The company reported a revenue of RMB 156.5 million and a net profit of RMB 3.8 million for 2024, showing a slight decline of 0.2% and a significant drop of 78.2% year-on-year, respectively. The underperformance was primarily due to asset impairment losses recognized in Q4 [1]. - In Q1 2025, the company achieved a revenue of RMB 34.8 million and a net profit of RMB 4.7 million, reflecting a year-on-year decrease of 9.7% in revenue but a growth of 6.4% in net profit, mainly attributed to non-recurring gains from asset disposals [1][4]. - The company maintains a competitive edge through scale and cost advantages, and its diversified development strategy enhances resilience during industry downturns [1]. Summary by Sections Financial Performance - For 2024, the company’s revenue from float glass, energy-saving glass, and photovoltaic glass was RMB 68.6 billion, RMB 24.3 billion, and RMB 57.5 billion, respectively. Photovoltaic glass saw a significant year-on-year increase of 68.6%, while float glass and energy-saving glass experienced declines of 24.3% and 12.7% [2]. - The gross margin for photovoltaic glass was under pressure, dropping by 12.5 percentage points year-on-year to 9.0%. However, the gross margin improved from 5.5% in Q4 2024 to 12.0% in Q1 2025 due to a rebound in photovoltaic glass prices [2]. Cash Flow and Expenses - The company’s operating cash flow for 2024 was RMB 9.1 billion, down 40.9% year-on-year, primarily due to increased working capital needs from new photovoltaic production lines. However, Q1 2025 saw an improvement in operating cash flow to RMB 0.2 billion, up RMB 3.4 billion year-on-year [3]. - The financial expense ratio increased slightly to 12.2% in 2024, with the rise attributed to increased borrowing costs related to new photovoltaic glass production lines [3]. Asset Management and Future Outlook - The net profit for Q1 2025 included a non-recurring gain of RMB 4.7 billion from the disposal of non-current assets. The company plans to acquire the remaining 28.8% stake in its subsidiary, Qibin Energy, which is expected to enhance operational control and decision-making efficiency [4]. - The profit forecast for 2025-2027 has been adjusted upwards, with expected net profits of RMB 10.1 billion, RMB 9.5 billion, and RMB 13.6 billion, respectively, reflecting a 47% and 4% increase from previous estimates [5].