Photovoltaic equipment & corrugated packaging equipment go hand in hand
The company moved from a broad layout to a focus on its main business, focusing mainly on the production and sales of photovoltaic equipment and corrugated packaging equipment. Other businesses, including auto parts casting and 3C automation equipment, are progressing steadily. In 2017-2021, the company's revenue and net profit returned to the mother CAGR were 27.69% and 1.98% respectively. With the rapid growth of the photovoltaic business, it maintained a growth rate of more than 100% in 2021-2022. According to the company's performance forecast, the net profit achieved in 2022 was 280 to 320 million yuan, an increase of 92% to 119.43% over the previous year.
Perovskite equipment: Deepening the layout is expected to continue to benefit from the promotion of industrialization of perovskite batteries. Industrialization is rapid, and GW bidding can be expected, but there are technical difficulties such as stability, large-scale preparation, and high efficiency. The perovskite equipment space is vast. We estimate that as of 2026, the total perovskite equipment space is 16.43 to 18.93 billion yuan, and the market space for perovskite equipment is expected to be 103.75-12.875 billion yuan in 2026. The company currently has a wide range of perovskite equipment, which is being deepened, mainly including PVD coating equipment, clustered multi-chamber evaporation equipment, ITO glass washing machines, spatial ALD equipment, RPD equipment, etc.
Other photovoltaic business: Continued increase in module automation equipment and expansion of cell equipment
Component business: The company mainly focuses on equipment such as laminators and assembly lines, and can provide “turnkey” overall solutions. The module business covers all mainstream photovoltaic companies at home and abroad. As of June 30, 2022, the company's on-hand orders were 4.156 billion yuan (tax included), an increase of 37.61% over the previous year.
HJT: Mainly wet processing and automated equipment, the company cooperates strategically with Fujian Jinshi. In the future, orders for Jinshi, related parties and the third company recommended by Jinshi to purchase cleaning and velvet making equipment should not be less than 10GW.
TopCon: PECVD and PVD 2-in-1 equipment completed development and delivery.
Traditional business: Packaging maintains a leading position. Other businesses expect profits to improve by the end of 2019. Jingshan Light Industry accounted for 25.85% of the national corrugated paper production line market, ranking first. With the post-pandemic economic recovery and zero social growth trend, the company's packaging business is expected to continue to grow. The layout of other businesses, such as 3C automation business, foundry products, and goods trade, is continuously optimized, and profits are expected to continue to recover.
Profit forecasts, valuations and investment ratings
We forecast the company's revenue for 2022-2024 to be 51.00/67.49/8.069 billion yuan respectively, net profit of 288/46/ 642 million yuan respectively, net profit CAGR of 2021-2024 is 64%, and diluted EPS calculated from the current total share capital of 623 million shares is 0.46/0.74/1.03 yuan.
The company's current stock price predicts that EPS's PE multiplier for 2022-2024 is 52/33/23 times, respectively. We selected leading photovoltaic equipment companies as shares, Jiejia Weichuang, and Otway as comparable companies. Considering that the company is a leader in photovoltaic module equipment and that the penetration rate of new products in the company's perovskite and other businesses is expected to continue to increase, the coverage was given a “buy” rating for the first time.