LONGi Green Energy Technology Earnings: Falling Product Prices Weigh on Profits

As expected, LONGi’s third-quarter revenue and net income fell by 19% and 44%, respectively, as product price declines outweighed shipment growth. With solar wafer and module prices hitting year-lows at the end of October, the fourth quarter is set to remain challenging. After factoring in the recent price decline, we lowered our net income estimate to CNY 15 billion from CNY 16 billion in 2023. Our assumptions for 2024 and beyond are unchanged. We expect the weak pricing outlook to remain a drag next year, but we forecast net income to rebound 30% year on year in 2024 on higher shipments.