Business focus has achieved remarkable results, and photovoltaic business has led to a high increase in performance. The company's business focuses on photovoltaic and packaging businesses.

In the field of photovoltaic, the company is the leading enterprise of assembly lines, laminators and other products. In terms of photovoltaic battery chips, the company has laid out three major cell technology routes: heterojunction, TOPCon and perovskite, and the core process and equipment have made major breakthroughs. In terms of corrugated packaging equipment, the company is one of the companies with the most complete product line in the world, and provides overall solutions for corrugated intelligent equipment and intelligent factories. In recent years, the company's performance has grown rapidly, with revenue CAGR reaching 25.9% in 2017-2022. Q1 revenue continued to grow by 28.0% in 2023. In recent years, the company's net profit has recovered rapidly, with a net profit of 302 million yuan in 2022, an increase of 107.0% over the same period last year. Q1 achieved a net profit of 53.37 million yuan in 2023, an increase of 61.5%.

Component assembly line, laminator global leader, sufficient orders on hand. The company's subsidiary Sheng Cheng Photovoltaic is the global leader in assembly lines and laminators, and its annual product shipments have leapt to the top of the industry. projects are distributed in more than 20 countries and regions, such as China, the United States, Germany, India, Singapore, Vietnam, Brazil, etc., with a cumulative number of projects exceeding 2200, with a cumulative installed capacity exceeding 500GW, with a leading market share. By the end of 2023, the company's photovoltaic plate had orders of 5.444 billion yuan, an increase of 45.56% over the same period last year, laying a solid foundation for the rapid growth of the company's photovoltaic automation production line.

Multi-line layout of the high-prosperity track, HJT, TOPCon, perovskite waiting to bloom. In the perovskite field, the company is an early completion of perovskite equipment development and actual product sales enterprises, the company's products have been more mature, with MW-level shipping and GW-level shipping capacity, can provide the overall solution In the HJT field, the company has become the only supplier of Jinshi cleaning velvet and the preferred supplier of automation equipment, and guaranteed that the future cleaning equipment order will not be less than 10GW, the company won the 4GW order at the end of 2022; in the TOPCon field, the company's first TOPCon technology two-in-one coating equipment has been successfully delivered in 2022.

Packaging equipment head enterprise, global layout customer resources are of high quality. The introduction of new packaging environmental regulations, the increase in online consumption led to the increase in corrugated box demand, corrugated box in high-end production capacity construction and equipment replacement will also increase the demand for equipment with a high degree of automation and advanced overall performance. Jingshan Light Machinery has become a recognized domestic first-tier brand and global well-known brand in the industry, and is one of the companies with the most complete product lines in the global industry, providing the overall solution of the intelligent factory in the corrugated packaging industry.

Investment suggestion: we expect the net profit of Jingshan Light Machinery from 2023 to 2025 to be 441 million yuan, 584 million yuan and 724 million yuan respectively, covering it for the first time and giving it a "buy" rating.

Risk hints: the risk that downstream demand is lower than expected, new product development and promotion is not as expected, industry competition intensifies risk, and so on.