FSTR Latest Report

Performance of the Quarterly Report

Based on the financial data in 2023 and 2024, LB First (FSTR) recorded an operating income of RMB128,183,000 in 2024, a YoY decrease of 4.90%. This change indicates that the company faced certain revenue pressure in 2024, which may affect its overall profitability.

Key Data in the Financial Report

1. Operating Income: RMB134,877,000 in 2023, RMB128,183,000 in 2024, a YoY decrease of 4.90%.

2. Third-quarter operating income was RMB4.411 billion, a YoY decrease of 26.90%.

3. Sales gross margin was 12.82%, down 5.23 percentage points from the previous quarter.

4. Sales net margin was 7.45%, down 0.03 percentage points from the previous quarter.

5. The sales price of photovoltaic film and photovoltaic backing decreased, leading to a decrease in overall revenue.

6. The price of EVA particles decreased, affecting the company's profitability.

Peer Comparison

1. Industry-wide analysis: In the overall industry, changes in operating income are usually closely related to market demand, industry trends, and macroeconomic environment. If the overall industry sales volume decreases, it may reflect economic slowdown or cyclical adjustment, and FSTR's operating income decrease may be a manifestation of this trend. According to the data, the average operating income of comparable companies in the industry decreased by 10.16% in the first three quarters of 2024, showing a gloomy trend for the entire industry, with a YoY decrease of 34.09% in net profit attributable to parent.

2. Peer evaluation analysis: FSTR's operating income decreased by 4.90% YoY, which performed relatively well in the industry, but still needs to be compared with other companies' revenue changes to assess market competitiveness. The performance of different companies in the industry varies significantly, such as a 306.75% decrease in the operating income of Hechuan Technology and a 23.92% increase in Xinzhe Electric, showing the intensity of industry competition.

Summary

FSTR faced pressure on operating income in 2024, mainly due to weak market demand, intensified industry competition, and uncertain macroeconomic environment. Although the company has made efforts to enhance market competitiveness through technological research and development and product differentiation, the gloomy trend of the entire industry still poses a challenge to its performance.

Opportunities

1. Continue to focus on photovoltaic materials business, enhancing market competitiveness through differentiated product development.

2. Actively promote new materials business, using cost control to cope with cyclical fluctuations in the industry.

3. Explore market opportunities in new technology fields such as TOPCon and HJT components, enhancing product value.

Risks

1. Persistent weak market demand may lead to further revenue decline.

2. Intensified industry competition may affect pricing strategies and market share.

3. Unstable macroeconomic environment may put the company under greater operating pressure.

4. Fluctuations in raw material prices may affect the company's profitability and cost control.