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<Research>CICC Cuts XINYI SOLAR (00968.HK) TP to $4; Profit Decline More Attributable to Asset Impairment/ FX Losses
Recommend 5 Positive 11 Negative 10 |
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According to a CICC research report, XINYI SOLAR (00968.HK) recently issued a negative profit alert, in which the company projected a YoY net profit decline of approximately 70-80% for the year ended December 31, 2024. The broker attributed the substantial earnings drop to a combination of factors, including losses in photovoltaic (PV) glass in 4Q24, glass inventory and impairment of idle equipment, and exchange losses. The broker estimated losses in PV glass business/ asset impairment/ exchange losses to reach $360 million/ $340 million/ up to $200 million, totaling a negative impact of about $900 million. Considering the current entry into the off-season for PV installations, coupled with the group's glass inventory days remaining at a high level, the broker forecasted that prices will subtract and XINYI SOLAR's earnings situation in 1Q25 may further deteriorate. CICC cut its target price for XINYI SOLAR to $4, with a Neutral rating. The broker also anticipated that the industry's supply and demand situation may improve this year. AAStocks Financial News |
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