1、 See the last page for disclaimer Page 1 of 25 Equity Research Equity Research Report Company Report 股股票票研研究究 公公司司报报告告 证证券券研研究究报报告告 清洁能源行业清洁能源行业-太阳能太阳能 Clean Energy Sector Solar 福福莱莱特玻璃特玻璃 Flat Glass(06865 HK)Company Report:Flat Glass(06865 HK)Jun Zhu 朱俊杰(852)2509 7592 公司报告：福莱特玻璃(06865 HK).hk 21 Dec

2、ember 2022 Capacity Expansion Strategy to Boost Growth,Buy 产能扩张策略将推动增长，“买入”We assign a Buy rating for Flat Glass with a TP of HK$25.70.The TP corresponds to 24.6x/20.0 x/16.5x 2022-2024 PER or 3.8x/3.2x/2.8x 2022-2024 PBR.Global demand for solar materials is set to rise.Newly installed solar capacit

3、y globally in 2030 is projected to reach between 1,500 GW-2,000 GW,which is to expand by at least 10-fold from the 168 GW installed in 2021.Assuming double-glass module penetration to be 75%in 2030,approximately 0.317 million tpd to 0.423 million tpd of solar glass capacity will be needed,thus the l

4、ong-term demand for solar glass remains quite strong.Only around 0.134 million tpd of solar glass production capacity will be in place in China at the end of 2024.Room for solar glass market growth will be huge over the next few years,despite the short-term risk of solar glass overcapacity.Significa

5、nt growth of solar glass sales volume to be brought by aggressive capacity expansion.Based on current expansion plans of Flat Glass,its production capacity is to increase from a mere 12,200 tpd in 2021 to 19,400 tpd/25,400 tpd/30,200 tpd in 2022-2024,respectively,further solidifying its industry lea

6、ding position in the solar glass industry.As such,the sales volume of solar glass is estimated to jump from 264.8 million sq.m in 2021 to 943.9 million sq.m in 2024,growing at CAGR of 52.8%.Under stable gross margin and a sharp increase in solar glass sales volume,net profit is estimated to grow at