Committed to creating innovative platform polymer materials enterprises: the company was established in 2008 to engage in the R & D and manufacture of thin film shape functional polymer materials with adhesives as the core, covering photovoltaic and non-photovoltaic sectors. including backplane, plastic film, 3C materials, lithium materials and other businesses, committed to building innovative platform polymer materials enterprises, revenue / return net profit of 4.115 million yuan in 2022 Increase by 36% and 1%. Affected by the intensified competition in film, 2023H1's revenue / return net profit is RMB 2.22 billion respectively, with a decrease of 2% and 71%. With the increase of N-type demand, the superimposed price increase transmits cost pressure, and the company's profit is expected to be repaired.

N-type technology iteration spawned new demand, UV optical conversion film building company Alpha: the strong demand for photovoltaic equipment led to a high demand for plastic film. We estimate that the demand for plastic film will be 453,673 million square meters in 2023, and CAGR will reach 31% in 2022-2025. With the development of N-type battery technology, the proportion of POE film with stronger waterproof and anti-PID effect will increase rapidly, the company as a veteran POE manufacturer. Full capacity expansion to meet high demand, at the same time for HJT to take the lead in innovation to launch UV optical conversion film, help HJT reduce the volume, customers basically cover mainstream HJT manufacturers, 2023 company film shipments are expected to be 300 million square meters, of which UV optical conversion film 3000 square meters, POE and UV optical conversion film proportion will help the company profit structural improvement.

Photovoltaic backplane industry leader, continuous research and development of new products to help improve profitability: with the increase in the proportion of double glass components, backplane demand has slowed down. We estimate that the backplane demand in 2023 will be 1.04 billion square meters in 2025, and the CAGR will reach 12% in 2022-2025, slightly slower than the industry. The company is the leading backplane, stable market share in the top two, while constantly increasing research and development to maintain a leading position, 2022 for the skyrocketing development of PVDF resin without the use of PVDF film PPf, FPf and the launch of high value-added transparent grid backplane, new product shipments share and stronger profits, driving the company's profits structural improvement, 2023 shipments are expected to reach 160 million + square meters.

Increase the layout of non-photovoltaic business and create a new growth curve of the company: non-photovoltaic materials are the new development focus of the company. In the field of new energy vehicle materials, the company provides a variety of materials, such as core blue film, side plate insulating film, CCS hot-pressed film, etc., and the market share continues to maintain a leading position. according to the estimated value of 2000 yuan in the research and sale of bicycles, the market space is 13.78 billion yuan in 2025 and 31% CAGR in 2022-2025. The company continues to open up customers and increase research and development to promote the cost reduction of old products and the development of new products. Shipments continue to increase rapidly, and revenue is expected to exceed 400 million yuan in 2023. The stock of semiconductor and consumer electronics materials is large, the domestic alternative space is broad, with the production capacity release and customer development revenue is expected to be high growth, non-photovoltaic materials business will become the company's new performance growth point.

Profit forecast and investment rating: we expect the company's return net profit from 2023 to 2025 to be RMB 13,000,000, a year-on-year increase of-24%, 92% and 21%, corresponding to the PE of 55-29-24, which is covered for the first time and given a "overweight" rating.

Risk hints: demand growth is less than expected, competition intensifies, and raw material prices fluctuate sharply.