Yangtze Securities: Maintaining a "buy" rating on Folate Glass, Q2 profit levels are expected to further increase.

Changjiang Securities research report pointed out that Fulait Glass's net profit attributable to shareholders in the first quarter of 2025 was 106 million yuan, a year-on-year decrease of 86% and a quarter-on-quarter increase of 137%. Looking ahead, on the demand side, the domestic distributed installation boom is slowing down, with component production maintaining high levels in May, but there is a possibility of production cuts in June. Shandong Province has taken the lead in issuing a draft of the mechanism electricity price bidding rules for comments, and it is expected that other provinces will successively issue relevant rules, which may restart domestic demand while overseas exports welcome the peak season. On the profit side, as one of the leading photovoltaic glass companies, the company has significant cost advantages compared to second and third-tier enterprises. With the decline in natural gas prices in the off-season, the profitability level in Q2 is expected to further increase. It is expected that the net profit attributable to shareholders in 2025 will be 1.4 billion yuan, corresponding to a A-share PE of 26 times and an H-share PE of 14 times, maintaining a "buy" rating.