Event: the company publishes its 2023 semi-annual report. The company's 2023H1 realized operating income of 1.554 billion yuan, an increase of 126.23% over the same period last year, and a net profit of 116 million yuan, an increase of 50.78% over the same period last year. Of this total, 2023Q2's single-quarter operating income was 979 million yuan, an increase of 145.60% over the same period last year, and its net profit was 71 million yuan, an increase of 80.68% over the same period last year.

Vigorously develop photovoltaic business. 1) Photovoltaic business has increased significantly, accounting for more than 70%. 23H1's photovoltaic solar module revenue increased by 375.86% to 1.1 billion yuan, accounting for 71.26% of the total revenue.

2) the performance of other businesses is robust. 23H1's household appliance components / optical communications business / motor business income is-1.1% Universe 9.23% Universe 3.38% respectively.

Profitability improved significantly compared with the previous month. 1) Gross profit margin: 23Q2's gross profit margin is from-2.66pct to 15.07% compared with the same period last year, which is significantly narrower than the Q1 month-on-month decline (Q1 is also down 8.15pct). Mainly due to the decline in the price of raw materials and photovoltaic business production and sales boom brought about by economies of scale. The gross profit margin of photovoltaic solar modules / household appliance components of 23H1 increased by 11.14% to 31.4% respectively. 2) rate side: 2023Q2 sales / management / R & D / financial rate is 0.44% 0.38/-1.92/-0.15/0.45pct 1.49% 3.42% Universe 0.30%, year-on-year change. 3) net interest rate: 23Q2 net interest rate year-on-year-2.27pct to 7.58% (Q1 same drop 5.33pct).

Create a "one body and two wings" development model to steadily expand the production capacity of photovoltaic modules. At present, the company focuses on the photovoltaic field, and has made steady progress in photovoltaic products and production capacity. 1) products: the company's previous main products are 166 half-chip, 450W components, follow-up research and production of 182 half-chip, 540W components, has been mass production, while the new product 210 half-chip, all-black components, double-sided power generation components have passed the relevant testing and certification. 2) production capacity: at present, Fuller New Energy can achieve the annual production capacity of 1.5GW/, with a daily output of about 6800 tablets. At present, the company has sufficient orders on hand and is actively increasing production capacity by issuing convertible bonds. It is expected to be completed and put into production by the end of this year, and the annual production capacity of 5GW/ will be achieved in the near future.

Profit forecast and investment advice. Taking into account the substantial growth in the company's performance in the first half of 2023, we expect the company to achieve a net profit of 2.01 million yuan in 2023-2025, an increase of 68.3%, 48.4% and 25.1% over the same period last year, and maintain the "overweight" investment rating.

Risk tips: raw material prices fluctuate sharply, photovoltaic energy storage business expansion is not as expected, and the demand of the white power industry is not as expected.