Core views
In 2022, the company achieved net profit of 302 million yuan, an increase of 107.04% over the previous year. Performance was at the center of the forecast. The company's strategy focuses on the three major business segments of “photovoltaic+packaging+lithium battery”, and the strategic plan is clear. In the field of photovoltaic module equipment, benefiting from the active expansion of downstream module manufacturers, the company's on-hand orders have continued to be full. Since 2023, it has announced large module equipment orders totaling 1,899 billion yuan to drive performance growth. In the field of photovoltaic cell equipment, the company has achieved the layout of multi-battery technology routes such as HJT, TopCon, and perovskite. It is a pioneer in the field of perovskite coating equipment, and actively lays out perovskite line equipment to build long-term core competitiveness.
occurrences
The company released its annual performance report for 2022, achieving annual revenue of 4.868 billion yuan, an increase of 19.14% over the previous year; Guimu's net profit was 302 million yuan, an increase of 107.04% over the previous year, and is at the center of performance forecasting. 2022Q4 achieved revenue of 1,760 million yuan, an increase of 28.73% over the previous year; Guimu's net profit was 101 million yuan, an increase of 6837.69% over the previous year.
Brief review
The annual results are in line with expectations, and the development of photovoltaic equipment is full of momentum
In 2022, the company achieved net profit of 302 million yuan to the mother, doubling the year-on-year increase. The performance was at the center of the forecast, in line with expectations. The company's photovoltaic equipment business maintained strong growth in 2022, and Shengcheng PV's operating performance reached a new high. The number of new orders signed in 2022 and the number of on-hand orders at the end of the year, sales revenue, and net profit all increased sharply year on year, driving rapid growth in the company's overall performance; while other industries other than the company's photovoltaic business were affected by external environments such as the economic downturn, saw a year-on-year decline in 2022 performance.
Orders for photovoltaic module equipment are growing rapidly, and the growth in performance is supported. We judge that in 2023, as prices in the PV industry chain drop and terminal demand is expected to increase significantly, we remain optimistic about the scale of module production expansion. At the same time, many leading players are actively expanding production and laying out the module business, driving continued demand for module equipment. According to the company announcement, since 2023, Shengcheng PV, a wholly-owned subsidiary of the company, has signed large orders for module equipment totaling 1,899 billion yuan, providing sufficient guarantees for the company's performance growth.
Firmly stick to the development plan for complete perovskite line equipment, and the development of battery equipment is worth looking forward to. In the perovskite field, the company has basically laid out most of the equipment, mainly including core coating equipment (PVD sputtering equipment, ALD equipment, cluster evaporation equipment, etc.), as well as glass washers, perovskite drying equipment, component packaging equipment, etc.
In the future, the company hopes to have the delivery capacity of the entire line, enhance the company's competitiveness through the integration of the entire line, and meet the needs of different customers; at the same time, it can also increase the value of the equipment that can be supplied, which is expected to bring greater flexibility to performance.
Investment suggestions: The company focuses on the “photovoltaic+packaging+lithium battery” equipment business. Photovoltaic module equipment benefits from the continuous rapid growth of downstream production expansion orders. Battery equipment is actively deployed in the TopCon, HJT, and perovskite fields. In particular, the perovskite sector is determined to plan full-line equipment, and future growth can be expected.
We expect the company's revenue for 2023-2025 to be 48.68, 59990, and 7.064 billion yuan respectively, up 19.1%, 23.1% and 17.9% respectively; the net profit returned to the mother in 2023-2025 was 302, 467, and 577 million yuan respectively, up 107.0%, 54.6% and 23.7%, respectively. The corresponding PE was 45.0, 29.1 and 23.6 times respectively, maintaining the “buy” rating.
Risk warning: ① The risk that the expansion of production in the downstream module industry falls short of expectations: PV equipment is one of the company's core businesses. The company occupies a leading position in the field of module assembly lines. Product demand mainly comes from the expansion of the downstream component industry. If downstream prosperity declines and the expansion of production in the module industry falls short of expectations, it will have a certain adverse effect on the company's performance growth.
② Risk that the development progress of new businesses such as battery equipment falls short of expectations: PV cell equipment is the company's key business development. The company has a layout of battery technology routes such as TopCon, HJT, and perovskite. New business expansion is not only constrained by changes in external factors, but also places higher demands on internal R&D and management capabilities. If major external factors change or the company's technology development and comprehensive operation capabilities are insufficient, it will face the risk that development falls short of expectations.