GLONGHUI July 14 | Guolian Securities Research Report on the 13th pointed out that GCL Integrated (002506.SZ) component production capacity continues to expand, providing support for component business revenue growth. The company mainly has three production bases in Hefei, Funing and Wuhu, and plans to lay out the production capacity of N-type large-size batteries and modules. The company plans a TOPCON production capacity of 20 GW in Wuhu. The first phase of 10 GW is under construction. The first phase is expected to be launched in July 2023. After completion, it will be used to meet the upstream battery production capacity support requirements of the major component bases in Hefei and Funing. The production capacity of the company's batteries, components, and energy storage systems is expanding rapidly, and shipments are expected to grow rapidly against the backdrop of strong demand, which is a strong support for the increase in performance. It is estimated that in 2023-2025, the company can achieve operating income of 18.92 billion yuan/37.43 billion yuan/57.15 billion yuan respectively, up 126.5%/97.8%/52.7% year on year; net profit from the return mother is 310 million yuan/650 million yuan/1.0 billion yuan respectively, up 425.2%/109.4%/53.8% year on year respectively. The corresponding EPS is 0.05/0.11/0.17 yuan/share, respectively, with a three-year CAGR of 156.7%, corresponding PE of 57.1/27.17.7 times. The absolute valuation method measured the value of each share at 3.58 yuan. Combining the absolute valuation method and the relative valuation method, the company was given a target price of 3.62 yuan/share, covering the “increase in holdings” rating for the first time.