The volume of photovoltaic modules led to a high increase in performance, and the performance was in line with expectations. 2023H1 achieved a revenue of 1.55 billion yuan (+ 126.2%), a net profit of 120 million yuan (+ 50.8%), and a non-return net profit of 110 million yuan (+ 60.7%). In a single quarter, 2023Q2 realized revenue of 980 million yuan (+ 145.6%), net profit of 70 million yuan (+ 80.7%), and non-return net profit of 70 million yuan (+ 106.6%).
The high performance increases the volume of the main photovoltaic module business continuously. The results are in line with expectations and maintain the profit forecast. It is estimated that the company's 2023-2025 net return profit will be RMB 20,000,000, corresponding to EPS 0.65pm, and the current share price will be 12.4x PE. The volume of PV module business will remain unchanged.
Photovoltaic module business volume, net profit increased significantly, optimistic about energy storage business to build a new performance growth point of view, 2023H1 home appliance business remains stable, compressors and small household appliances supporting revenue of 350 million yuan (- 1.1%), accounting for 22.3%; gross profit margin 31.4%, year-on-year + 1.0pcts. Motor achieved revenue of 80 million yuan (+ 3.4%), accounting for 4.9%; gross profit margin of 8.4%, year-on-year-12.2pcts. Photovoltaic business continued to expand, achieving revenue of 1.11 billion yuan (+ 375.9%), accounting for 71.3%; gross profit margin of 11.1%, year-on-year + 3.2pcts, improvement of main product structure and price drop of raw materials. 2023H1 sub-region, domestic revenue of 1.44 billion yuan (+ 134.0%), accounting for 93.0%; gross profit margin 14.8%, year-on-year-5.4pcts. Overseas revenue 110 million yuan (+ 57.1%), accounting for 7.0%; gross profit margin 25.6%, year-on-year + 1.3pcts. 2023H1 Fuller New Energy has a revenue of 1.11 billion (+ 357.4%), a net profit of 60 million yuan (+ 4306%) and a net interest rate of 5.2% (+ 4.7pcts). The company's 2GW/ annual photovoltaic module expansion project is expected to be completed and gradually put into production in 2023, and the future plans to further achieve 5GW/ annual production capacity in the shortest possible time. By signing an agreement with Changfeng Intelligence to enter the new energy storage track, the company is in the stage of communication between technology and business, such as product solutions, technical requirements, appearance design, etc., and is expected to build a new performance growth point.
Due to the structural impact of the increase in revenue share of photovoltaic module business, the profitability of the company has decreased, while the proportion of main photovoltaic module business revenue has increased. 2023Q2 gross profit margin is 15.1% (- 2.7pcts). The expense rate during the 2023Q2 period is 5.1% (- 2.0pcts), of which the sales / management / R & D / financial expense rate is 0.4%, 1.5%, 3.4%, 0.3%, respectively, compared with the same period last year.-0.4pct/-1.9pct/-0.1pct/+0.5pct.
2023Q2 sales net interest rate 7.6% (- 2.3pct), deducting non-net interest rate 6.9% (- 1.3pct).
Risk hints: raw material prices fluctuate; market competition intensifies; new energy and new business development falls short of expectations.