Main points of investment

There was a high increase in shipments of photovoltaic modules, and the 2023H1 homing net profit increased 50.78%2023H1 over the same period last year. The company realized operating income of 1.554 billion yuan, an increase of 126.23% over the same period last year, and homed net profit was 116 million yuan, an increase of 50.78% over the same period last year. The non-parent net profit was 110 million yuan, an increase of 60.66% over the same period last year. The company realized a net profit of 71 million yuan, an increase of 56.82% over the previous month, and a net profit of 67 million yuan, an increase of 59.53% over the previous month.

Photovoltaic storage business: photovoltaic modules accelerate production expansion, energy storage business is expected to increase the volume of 2023H1, the company's photovoltaic module sales of about 0.8GW; corresponding operating income of 1.107 billion yuan, an increase of 375.86% over the same period last year; gross profit margin 11.14%. At present, the company's component production capacity of 1.5GW, can produce P-type, N-type, HJT and other types of conventional or personalized customized components. The company accelerates the construction of "annual production 2GW high-efficiency solar photovoltaic module construction project", which is expected to be completed and gradually put into production by the end of this year. In the future, we plan to further realize 5GW production capacity in the shortest possible time. The company has been selected as one of the qualified suppliers of SPIC single crystal photovoltaic cell modules and officially entered SPIC's spare parts supply system. In addition, the company signed the "Energy Storage Business Strategic Cooperation Agreement" with Changfeng Intelligence, and Fuller New Energy purchased energy storage equipment from Changfeng Intelligence during the agreement period. Changfeng Intelligence gives priority to providing energy storage equipment products, technical training, technical support and related after-sales services to Fuller New Energy. The company's photovoltaic components and energy storage system matching sales, has started a small batch supply, and strive to have batch delivery with customers in Q3.

Motor industry: a wide range of products are used to speed up the development of new markets such as elevators and Xineng cars (2023H1). The company's motor industry has an operating income of 76 million yuan, an increase of 3.38% over the same period last year, and a gross profit margin of 8.38%. The subsidiary Zhejiang Motor specializes in the R & D, production and sales of small and medium-sized motors and micro motors, with applications covering refrigerators, air conditioners, elevators, cleaning machines, new energy vehicles, kitchen waste grinders, pumps and other fields. Combined with customer demand, the company actively adjusts its product structure and speeds up the development of new markets such as elevator business (especially villa elevator business), commercial compressor business and new energy vehicle business, such as signing the "General principles for productive material Purchasing" with BYD. officially entered the BYD supply chain system, has been small batch supply; at the same time, it has also accepted the factory inspection work of some new energy vehicle manufacturers.

White goods parts: market share is leading in the industry, profits maintain a high level of 2023H1, the company's white goods industry operating income of 356 million yuan, a year-on-year decrease of 0.85%; gross profit margin 30.52%. As the key components of household appliances such as refrigerator, freezer, air conditioner, water cooler and washing machine with drying function, the company leads the industry in starter, thermal protector and sealed terminal post products. Since the beginning of this year, the vitality of the home appliance market has gradually recovered, especially with the popularity of the emerging and intelligent home appliance market, the company's home appliance business is full of new vitality and still has the ability of steady and sustainable development in the future. In addition, the company's home appliance business will use more of its stable cash flow to develop new energy sector business on the basis of maintaining the current growth level.

Profit forecast and valuation

Maintain profit forecast, maintain "buy" rating: the company is the leader of compressor accessories, the steady development of white power business, optical storage business to create incremental space. We maintain the company's profit forecast and expect the company's return net profit from 2023 to 2025 to be 2.01,2.96 and 397 million yuan respectively, an increase of 68.61%, 47.51% and 33.94% respectively over the same period last year, corresponding to EPS 0.65 yuan per share, 0.97,1.29 yuan per share, and PE 19,13 and 10 times respectively. Maintain a "buy" rating.

Risk hint

Downstream demand is lower than expected; energy storage business development is not as expected.