Event description

On August 31, Yonghe Intelligence released its semi-annual report of 2023, with revenue of 500 million yuan in the first half of the year,-6.2% of the same period last year, and net profit of-20 million yuan, 171.4% of the same period last year. The net profit of Q2 in 2023 is 6 million yuan, which is narrower than that of Q1, and the performance is within the forecast range. The higher management cost of the company's restricted stock amortization, the change in profitability of each business board and the large investment in the battery industry are the main reasons for the decline in net profit compared with the same period last year.

Event comment

Cut into the photovoltaic field and create the second growth curve. The company's holding subsidiary Pule Taixing is the development platform of the company's photovoltaic cell business, which is mainly engaged in the research, development, production and sales of N-type high-efficiency solar cells.

It has developed and applied for 57 patents, mainly covering TOPCon and IBC battery technology, with a variety of high-efficiency battery mass production processes.

The first TOPCon battery is offline, and the highest conversion efficiency is 25.66%. In April 2023, Puller completed the infrastructure project of the plant and supporting facilities, and the first TOPCon battery was offline in May. The company's TOPCon battery process adopts advanced LPCVD double insertion process, coupled with laser SE process, and the highest conversion efficiency reaches 25.66% after delivery.

It is estimated that the demand for long single landing protection of 4-5GW TOPCon battery shipments in 2024. According to the previous announcement plan, by the end of 2023-2025, the production capacity of Pule Taixing battery is expected to reach 2GW, 5GW and 10GW respectively, and it is expected to have a stable production of 4-5GW by 2024. In addition, from the point of view of sales, on May 18, the company reached a long-term cooperation with Tianda New Energy and Aerospace Photovoltaic (Turkey) on the purchase and sale of GW-grade TOPCon battery chips.

Investment suggestion

The company has entered the photovoltaic field to create the second growth pole. We estimate that the company's net profit from 2023 to 2025 will be 0.7 hundred and eighty million yuan, respectively, and will turn a loss into a profit in 2023. It will grow by 138.4% and 42.3% year-on-year in 2024 and 2025, respectively, corresponding to an EPS of 0.160.39 and PE of 48.720.4 and 14.4 times.

Risk hint

Photovoltaic demand is lower than expected: the lower-than-expected photovoltaic demand will affect the sales and selling prices of the company's battery business, thus affecting the company's profits.

The photovoltaic cell project is not as expected: if the battery project cannot be put into production as scheduled, it will have a negative impact on the company's profit growth.

Risk of policy change: if the state's support for the photovoltaic industry is weakened, the relevant policy adjustments may affect the profits of the photovoltaic business.

Photovoltaic industry chain raw material price fluctuation risk: may produce inventory impairment and other situations, thus affecting the company's profits.