Both revenue and profit have increased, and profitability has improved significantly.

Fast can electronic release 2023 semi-annual report, the company's 2023H1 operating income of 649 million yuan, yoy+20.0%, to achieve a net profit of 88 million yuan, yoy+86.2%. Among them, 2023Q2 realized operating income of 345 million yuan, yoy+17.9%,QOQ+13.5%, realized net profit of 49 million yuan, yoy+87.4%,QOQ+27.4%.

2023Q2 gross profit margin / net profit margin is 21.7% pesque 14.2%, respectively compared to + 1.0/1.6pct. The 2023Q2 sales / management / R & D / financial expense rate is 0.9% Universe 1.9% Universe 3.4% Universe 3.1%, respectively compared to 0.40/0.05/0.04/-3.63pct. In the first half of the year, export sales reached 260 million yuan, accounting for 40.2% of the total, accounting for 104.1% of the total. Considering the decline in the price of the main raw materials of the company's products, its profitability has significantly improved, while the superposition company is actively expanding in overseas markets, its revenue scale is expected to continue to expand. We raise the company's profit forecast. It is estimated that the company's 2023-2025 net return profit will be 2.29pm (the original 2.10pm), and the EPS will be 2.753.77max 5.05 yuan. Corresponding to the current stock price, PE is 18.2%, 13.3%, 9.9 times. Considering that the company continues to increase its production capacity and actively expand overseas customers, the market share of photovoltaic junction box products is expected to increase steadily and maintain the "buy" rating.

The profitability of photovoltaic junction boxes and photovoltaic connectors increased significantly, and the production capacity expansion accelerated the market share to increase the company's 2023H1 photovoltaic junction box revenue of 544 million yuan, with a yoy+26.6%, gross profit of 20.1% gamma yoywoods 4.1 pct. By the end of 2022, the company has a capacity of 70 million sets of photovoltaic junction boxes, and it is expected that the company will strive to achieve 100 million sets of photovoltaic junction boxes by the end of 2023. At the same time, the company actively docks overseas component enterprises, including Youda Optoelectronics and HANSOL, to open up the incremental market space. The revenue of 2023H1 photovoltaic connector is 93 million yuan, and the gross profit of yoy-8.9%, is 24.8%. At the same time, the company further expands its photovoltaic connector production capacity, and its photovoltaic connector capacity is expected to reach 120 million pairs by the end of 2023.

Open up a new growth curve, specialize in energy storage connectors and intelligent junction box technology companies actively make use of their advantages in photovoltaic connectors to actively develop the second growth curve into the field of energy storage business, and successfully achieve the mass production of fast-installed economical energy storage connectors. At the same time, the company continues to increase the code of intelligent junction box research and development work, to achieve ultra-efficient distributed photovoltaic system external towing intelligent junction box production and external DC linear fast turn-off external junction box, wireless monitoring type intelligent photovoltaic module junction box, wired power line carrier intelligent monitoring type photovoltaic module junction box R & D work, the company's intelligent turn-off junction box and intelligent optimization junction box products are expected to accelerate the promotion.

Risk tips: capacity investment is not as expected, industry competition aggravates the risk.