Q1 2023 performance: Up 61% year on year; boom in module production expansion is high, and more battery equipment is expected to blossom 1) Performance is in line with expectations: revenue was 1.33 billion yuan, up 28% year on year; Guimu's net profit was 53 million yuan, up 61% year on year.
2) Profitability: gross profit margin was 19.6%, a year-on-year increase of 2.6pct; net profit margin was 4.8%, a year-on-year increase of 1.3 pct.
3) Accelerated orders: At the end of the first quarter, contract debt was 2.5 billion yuan, an increase of 88% over the previous year; benefiting from increased demand for photovoltaics+integration trend+demand for N-type battery modules, we expect the boom in module production expansion in 2023, and the company will fully benefit. At the same time, the company's new battery equipment business will enter a multi-point flowering stage, and there is plenty of room for perovskite equipment to grow.
2022 results: 107% year-on-year increase; leading component equipment companies increase their strength to battery equipment1) High performance increase: revenue of 4.87 billion yuan, up 19% from the previous year; net profit of the mother was 300 million yuan, up 107% year on year. The core benefited from the growth of the company's component equipment business and the reduction in the cost rate during the period.
2) Profitability: Net interest rate exceeds expectations. In 2022, the company's gross profit margin was 21.5%, an increase of 1.9 pct over the previous year; the net profit margin was 6.7%, an increase of 3.8 pct over the previous year. It is expected that the company will expand into battery equipment in the future, leading to an increase in profitability trends.
3) Orders: By the end of 2022, the company's PV sector had orders of 5.44 billion yuan (tax included), an increase of 45.6% over the previous year.
Business structure: (1) Component equipment: The company occupies a leading position in the field of automated production lines, and domestic and foreign markets continue to gain strength.
(2) Perovskite equipment: An investment of nearly 100 million yuan was invested to build a perovskite battery test center to complete the construction of a complete large-scale single-junction perovskite battery pilot line and a crystalline silicon perovskite laminated battery test line, which can provide GW grade perovskite mass production equipment output and technical support. (3) HJT equipment: The first HJT velvet cleaning equipment has been successfully delivered and verified, and orders for 4GW velvet cleaning equipment, pre-cleaning equipment, and etching cleaning equipment have been obtained. (4) TopCon equipment: The first TopCon technology 2-in-1 coating equipment has been successfully delivered.
Jingshan Light Machinery: Perovskite equipment has a large market space; component equipment and HJT+TopCon equipment have blossomed at multiple points 1) Perovskite equipment: Perovskite equipment market space is expected to be 83.6 billion yuan in 2030, CAGR = 80% in 2022-2030. The company has deployed PVD, ALD, clustered multi-chamber evaporation equipment, component packaging equipment, etc., and has achieved mass production and successfully applied to multiple clients. It will have the ability to deliver complete line equipment for perovskite batteries. If it maintains its first-mover advantage, it will fully benefit from the wave of perovskite industrialization.
2) Component equipment: The market size of component equipment (assembly lines+laminators) is expected to reach 10 billion yuan in 2025, and CAGR = 16% in 2022-2025. The company is a leader in automated production line equipment for components, serving leading customers at home and abroad, benefiting from the expansion of component production.
3) TopCon equipment: The company's core layout is TopCon 2-in-1 coating equipment (PECVD+PVD), and is looking forward to a breakthrough.
4) HJT equipment: The company cooperated with Jinshi Energy to clean velvet equipment, which has received a 4GW mass production order, benefiting from increased industry sentiment.
Investment advice: Perovskite equipment leader; photovoltaic modules, TopCon, and HJT battery equipment have blossomed at multiple points. The company's net profit for 2023-2025 is expected to reach 4.4/559/75 billion yuan, an increase of 47%/33%/27% over the previous year, and the corresponding PE is 29/22/17 times. Maintain a “buy” rating.
Risk warning: New product marketing falls short of expected risks; risk of downturn in industry sentiment; risk of market competition.