Main points of investment
Q3 deducted non-profit increased by 96% compared with the same period last year, better than market expectations.
From January to September, the company's income was 3.932 billion yuan, an increase of 28.1% over the same period last year; the return to the mother was 230 million yuan, an increase of 113.1% from the same period last year; the company's investment income in January-September was 40 million yuan, mainly due to the investment income from the disposal of Hunan Yihua equity (63 million yuan). Deducting 194 million yuan for non-return net profit increased by 97.43% over the same period last year.
Q3 single-quarter company income of 1.541 billion yuan increased by 34.17% over the same period last year; net profit returned to the mother was 50 million yuan, up 22.97% over the same period last year; and non-return net profit was 75 million yuan, up 96.12% over the same period last year.
Photovoltaic: optimizing the layout of production capacity, the United States, Europe and China
The company previously announced on September 28 that the board of directors approved the establishment of two US subsidiaries: Taihua New Energy (Thailand) to set up two subsidiaries "CZT ENERGY INC" and "NEXTRISE INC" in the United States, registered in Delaware, the company holds 75% of the shares. The company's main customers include NT, GCS, FTC and other North American head tracking stent manufacturers. The establishment of a subsidiary in the United States will help the company to further enhance its comprehensive competitiveness. In addition, the development of US subsidiaries is also expected to benefit from policies such as new energy subsidies in the United States.
Europe & China: actively expand PVH, SOLTEC and other European customers, Wood Mackenzie data 2021 PVH, SOLTEC photovoltaic tracker shipments ranked third and fifth in the world; Tianjin Shengwei set up subsidiaries in Zhangjiakou, Anhui and other places, of which Zhangjiakou subsidiary joint venture is Zhangjiakou Zhonghe New Energy Group, which is expected to further accelerate the expansion of the domestic market through cooperation with joint ventures and territorial layout.
Prior to the announcement, the company announced that it would raise no more than 608 million for Yueqing photovoltaic support core components production base construction project (total investment / fund-raising funds 405 million), photovoltaic support full-scene application research and development and experimental base construction project (total investment / fund-raising funds 069 million), supplementary liquidity (180 million). On October 30, the company announced that the application for a non-public offering of shares was accepted by the China Securities Regulatory Commission.
Connectors: high growth of automotive connectors is expected to increase valuations
The high growth of automotive connectors is expected to increase the valuation. Suzhou Yuanye, a subsidiary of the company, has developed ADAS, MDC, 5G T-BOX and other series of connectors with customers including Huawei, APTIV, BYD, Geely and so on. Suzhou Yuanye had an income of 64.83 million yuan and a net profit of 14.5 million yuan in the first half of 2022, compared with 32.87 million yuan and a net profit of 720000 yuan in the same period last year.
Investment suggestion
Considering the influence of overseas photovoltaic policy and the establishment of factories in the United States, the profit forecast for 2022 is lowered. It is estimated that the net profit of 2022-24 is 2.80,4.46 and 601 million yuan, and that of PE is 31,19,14 times, maintaining "buying".
Risk hint
The construction progress of the factory in the United States is not as expected; the acquisition of orders is not as expected; the development of connector business is not as expected.