Event: the company announced that 2023Q1 realized a revenue of 3.721 billion yuan with an increase of 0.23%, a net profit of 180 million yuan with an increase of 0.71%, and a net profit of 179 million yuan with an increase of 7.10%.

Revenue / performance growth has become positive, with sufficient on-hand orders. The revenue growth rate of the company's 2022Q1-2023Q1 is 34.58% CPM 2.92% CPM 4.61% CPM 3.94% Universe 0.23%, and the growth rate of net profit returned to the home is 35.55%, 18.71%, 18.71%, 58.95%, 0.71%, respectively. Both the performance and the revenue growth rate have changed from negative to positive. Judging from the newly signed contracts, 2023Q1 Company (including holding subsidiaries) signed a total of 114 new contracts, with a contract value of 5.5 billion yuan, an increase of 23.4%. Of these, 4.12 billion yuan was newly signed for professional subcontracting integration / EPC business, and the EPC contract increased rapidly, with an increase of 241%. We believe that more adequate orders-on-hand are expected to provide better support for the company's revenue growth.

The gross profit margin increased compared with the previous month, and the net operating cash outflow decreased. The company's 22Q1/22Q4/23Q1 gross profit margin is 13.34% Universe 12.86% Universe 14.05%, both improved month on month and year on year. During the period, the expense rate increased 1.05pct with 9.59%, of which the sales / management (including R & D) / financial expense rates were 1.18%, 8.05% and 0.37%, respectively, compared with the same period last year. 0.21pctlem1.01pctripple 0.17pct; the loss rate of assets and credit impairment was-0.84% with the same decline in 0.62pct. The vested net interest rate of 4.85% is the same as the increase of 0.02pct. The net outflow of operating cash flow of 2023Q1 was 196 million yuan, which was 88 million yuan lower than that of the same period last year; the cash-to-cash ratio of 127.44% increased 6.37pct, and the cash-to-cash ratio of 138.61% decreased 4.51pct. As of 2023Q1, the scale of accounts receivable and bills, inventory + contract assets, accounts payable and bills, and prepaid accounts + contract liabilities was 26.22,85.08 plus 1.733 billion yuan respectively, which was-5.21%, 5.08%, 13.68% and 6.22%, respectively, compared with the beginning of the year.

The company's industrial customers are of excellent quality and strong stickiness, and the potential demand for optical storage business is abundant. At the beginning of 2023, the company set up a joint venture with State Nuclear Investment (with the advantage of financing side) to promote the development of BIPV in the form of "development + investment + construction + transfer". At the same time, the company actively extends the existing green building industry chain, by further providing customers with green low-carbon industrial factories and parks, and plans to try user-side energy storage business, carry out strategic cooperation with Shandong Enensen New material Technology Co., Ltd., a professional company in molten salt energy storage (thermal) energy storage. The company's 2023Q1 newly signed industrial construction project customers include BYD, Geely Group, Minshi Group, Celanese, Quaternus and other industry leading enterprises, and 76% of industrial orders come from old customers. High-quality old customer resources are an important channel basis for the company to carry out new energy business for cross-marketing. In March, the company has carried out 12.5MW distributed photovoltaic power generation project cooperation with Minshi Group, one of the top 100 auto parts enterprises, with an investment of about 60 million yuan. In the follow-up, with the gradual development of new and old customers, the company is expected to create new profit growth points.

Investment suggestion: we predict that the company's net return from 2023 to 2025 will be RMB 860,036A, respectively, with an increase of 21.76%, 20.51%, 16.92%, respectively, and 0.43, 0.51, 0.51, 0.60, respectively. The current stock price corresponds to a PE of 9.25max, 7.67, 6.56 times, maintaining the "overweight" rating.

Risk hints: macroeconomic fluctuation risk; industry competition intensification risk; raw material fluctuation risk.