Revenue and profit increased both in 2022, and the performance was in line with expectations
The company achieved revenue of 1,099 million yuan in 2022, an increase of 49.4% over the previous year, and achieved net profit of 118 million yuan to the mother, an increase of 82.6% over the previous year. Among them, 2022Q4 achieved operating income of 277 million yuan, an increase of 45.5% over the previous year, a decrease of 1.3% from the previous month, and the net profit of the mother was 31 million yuan, an increase of 90.7% over the previous year and a decrease of 22.5% from the previous month.
Affected by rising raw material prices, the company's gross margin for 2022Q4 was 20.8%, down 1.7% from the previous month. Considering that the price of copper, the main raw material for the company's junction boxes and connectors, is relatively high, it is expected that the gross margin of the company's main products will remain relatively stable. The company's net profit for 2023-2024 is estimated to be 2.10/302 million yuan (originally 300/460 million yuan), 405 million yuan in 2025, and EPS of 3.28/4.72/6.33 yuan (originally 4.68/7.18 yuan in 2023-2024), corresponding to the current stock price PE of 24.7/17.2/12.8 times. Considering that the company continues to increase production capacity, the market share of photovoltaic junction box and connector products is expected to increase steadily, maintaining the “buy” rating.
Sales of photovoltaic junction boxes and photovoltaic connectors grew steadily, and the market share of continued expansion of production capacity increased steadily. The company achieved revenue of 916 million yuan of photovoltaic junction boxes in 2022, yoy +58%, gross margin of 18.4%, yoy-0.2pct. The company achieved sales of 49.054 million PV junction boxes, an increase of 56% over the previous year. The net profit of a single set was 2.1 yuan/set, an increase of 18% over the previous year, mainly due to the sharp drop in the price of raw materials and copper materials in 2022Q3. The quarterly bargaining mechanism on the sales side enabled the company to earn a certain amount of excess profit. By the end of 2022, the company had a PV junction box production capacity of 70 million sets. It is estimated that by the end of 2023, the company will strive to achieve 100 million PV junction box production capacity.
The company achieved revenue of 165 million yuan for photovoltaic connectors in 2022, yoy +14.8%, gross margin of 18%, yoy+2.2pct. The company achieved sales of 853.14 million pairs of photovoltaic connectors, with YOY +6.5%. At the same time, the company is further expanding its photovoltaic connector production capacity, and its photovoltaic connector production capacity is expected to reach 120 million pairs by the end of 2023.
Pioneering a new growth curve, the company specializing in energy storage connectors and smart junction box technology actively used its advantages in photovoltaic connectors to actively explore the second growth curve into the energy storage business field, successfully achieving mass production of economical energy storage connectors that were quickly installed. At the same time, the company continued to increase the R&D of smart junction boxes for ultra-high-efficiency distributed photovoltaic systems, and achieved mass production of ultra-high-efficiency distributed photovoltaic system tractable type quick shutdown external junction boxes, wireless monitoring smart photovoltaic module junction boxes, and wired power carrier intelligent monitoring photovoltaic module junction boxes. The company's intelligent shutdown junction boxes and intelligent optimization junction box products are expected to accelerate promotion.
Risk warning: Production capacity investment falls short of expectations, and industry competition increases the risk.