Core viewpoints

The company released the mid-2023 report, photovoltaic, energy storage business to achieve substantial growth, in addition to energy storage integration business, photovoltaic inverter, energy storage PCS gross profit margin is relatively stable compared with the same period last year. After removing the influence of exchange earnings, the company's performance increased significantly compared with the same period last year and month-on-month, in line with expectations. In the first half of this year, domestic photovoltaic installed capacity increased by 150% compared with the same period last year, and the energy storage installed capacity has exceeded the cumulative total over the years. It is optimistic that the company will invest in photovoltaic and energy storage, and maintain or raise its gross profit margin through R & D and overseas market expansion.

Event

The company released its mid-2023 report, with revenue of 2.177 billion yuan, an increase of 417% over the same period last year, a net profit of 135 million yuan, an increase of 489%, and a net profit of 129 million yuan, an increase of 594% over the same period last year. Of this total, the income in the second quarter was 1.557 billion yuan, an increase of 666 percent over the same period last year, an increase of 151 percent over the same period last year, and the net profit of returning to the mother was 99 million yuan, an increase of 1340 percent and 170 percent over the same period last year.

Brief comment

Photovoltaic revenue is obvious, domestic and foreign shipments are exuberant, gross profit margin remains stable in the first half of 2023, the company's photovoltaic inverter revenue of 1.303 billion yuan, an increase of 276%, a significant increase. Gross profit margin 19.85%, year-on-year-0.97pct, relatively stable.

According to the data of the National Energy Administration, the domestic photovoltaic grid-connected capacity 78.42GW increased by 154% in the first half of 2023, including centralized 37.46GW and distributed 40.96GW. According to the China News, the company is currently in the top three in the bidding for centralized ground power stations. The company also attaches importance to the development of overseas markets, ranking second in the number of inverters connected to the grid in the Indian market in 2022, accounting for about 23.39%. At present, on the basis of completing the business layout of ground photovoltaic power stations in India, Southeast Asia, the Middle East and Europe, we continue to increase the overseas expansion of other businesses and market segments.

Energy storage revenue is growing rapidly, and PCS gross profit margin is expected to remain stable

In the first half of 2023, the company's energy storage business income was 818 million yuan, an increase of 2046% over the same period last year; gross profit margin was 11.82%, year-on-year-16.91pct. The rapid growth of revenue and the decline of gross profit margin are mainly due to the large volume of system integration business, low gross profit margin and lower average gross profit margin. It is estimated that the system integration delivery volume of the company in the first half of the year is about 400MWh, with revenue of 500-600 million, while the energy storage PCS revenue is expected to be about 250 million, the delivery volume exceeds 1GW, and the gross profit margin is more than 20%, which remains relatively stable. According to the third quarter press conference of the Energy Bureau, the new grid-connected capacity of new energy storage in China reached 8.63GW/17.72GWh from January to June in 2022, exceeding the total installed scale over the years, and the development of energy storage is in full swing.

Iterative cost reduction in R & D is beneficial to the maintenance of gross profit margin

At present, the company's series inverter can provide 8~350kW full power segment products, centralized inverter can provide 2500~6900kW power segment products, distributed inverter single power segment 1000~3150kW. In terms of energy storage, the company can provide AC energy storage converter, DC energy storage converter and energy storage integrated system. Among them, the power section of AC energy storage converter has covered 140 to 3450kW. Large-scale PCS helps to dilate the unit W cost, which is conducive to the maintenance of gross profit margin; DC energy storage converter uses silicon carbide devices, the scheme system loss is low and the cost is low.

Strong development of domestic and foreign markets and breakthroughs have been made in the export of energy storage.

According to the China News, the company's revenue from Hong Kong, Macao, Taiwan and overseas reached 220 million yuan in the first half of 2023, an increase of 51.9 percent over the same period last year. The company's products are used in Singapore's 200MW/400MWh energy storage power station, and the next step will include the development of large energy storage power stations in North America, distributed photovoltaic and household storage markets in Europe, and so on.

Performance forecast

It is estimated that the company's net profit in 2023 and 2024 will be 4.21 and 647 million respectively.