Main points of investment
Event: 2023Q1-3 achieved operating income of 2.187 billion yuan, an increase of 109.76% over the same period last year; net profit of 166 million yuan, an increase of 185.41% over the same period last year; net profit of 160 million yuan, an increase of 208.64% over the same period last year; and the weighted average ROE increased 5.77pct to 11.29% over the same period last year.
The performance of 2023Q1-3 increased by 185 per cent year-on-year, and the net profit rate on sales also increased by 1.77pct to 7.53 per cent.
The high increase in revenue and performance of 2023Q1-3 was mainly due to an increase in completion orders over the same period last year, with a gross sales margin of 26.67%, an increase of 0.23pct, a decrease of 0.52pct of 14.46%, a net profit rate of 7.53%, and an increase of 1.77pct. 2023Q3's single-quarter revenue was 855 million yuan, year-on-year + 130.90%, month-on-month + 13.01%, return to the mother net profit 63 million yuan, year-on-year + 259.63%, month-on-month-6.84%, sales net interest rate 7.28%, year-on-year + 1.63pct.
Net operating cash flow improved compared with the same period last year. 2023Q1-3) the net cash flow of the company's operating activities was-300 million yuan, with an increase of 37.74%. 2) the net cash flow of investment activities was-505 million yuan, compared with-16 million yuan in the same period last year. 3) the net cash flow of fund-raising activities was 1.106 billion yuan, an increase of 151.72%.
Photovoltaic process pollution prevention and control equipment leader, downstream demand high increase & unit value promotion and growth acceleration. With the advantages of brand, technology and cost, the company consolidates its leading position of waste gas treatment equipment in the photovoltaic process, and benefits from the accelerated expansion of photovoltaic cells. at the same time, the new technology route-integrated category expansion is expected to increase the company's unit value by 5 to 11 times. By the end of September 2023, the company has announced that the total amount of new bid-winning projects in that year is about 5.422 billion yuan (including consortium projects). The winning projects are mainly photovoltaic & pharmaceutical industry, and about 90% are EPC projects. The winning bid of EPC project further reflects the company's competitiveness in large-scale industrial comprehensive supporting projects. The GW value of Wuzhou project list in Guangxi is 65.72 million yuan, and the GW value of Ates project list is 29.71 million yuan, which verifies the company's integration model & the ability to extend the industrial chain.
The battery sheet project is about to be put into production, the carbon sequestration business has great potential for rapid development, and new growth + cash flow improvement can be expected. The company is actively expanding 1) Photovoltaic battery slices: the proposed annual production of 24GW high-efficiency N-type single crystal TOPCon solar cell project is a strategic expansion of the company's entry into the downstream battery field based on electromechanical system design experience. In accordance with the progress of the project construction, the relevant mechanical and electrical equipment and production equipment have entered the market one after another, and is expected to be put into production in November 2023. 2) cement carbon sequestration-steel slag recycling: the market scale of mineral powder exceeds 100 billion, the company's first project has been put into production in November 2022, by the time 2023Q3 Company has completed and put into production 2 lines; 4 lines are under construction / proposed, carbon sequestration business has great potential for development. The project can capture flue gas CO2& steel slag for resource utilization at low cost & prepare low-carbon building materials. With the expansion of the carbon market, the demand for carbon sequestration of cement and steel will be accelerated.
Profit forecast and investment rating: photovoltaic demeanor upward, cement carbon sequestration gradually advanced, battery chip project construction is smooth, we maintain the company's 2023-2025 home net profit forecast of 2.40 PE 9.04 / 1.251 billion yuan, corresponding to 22, 6, 4 times PE, maintain the "buy" rating.
Risk tips: orders are not as expected, R & D risks, industry competition intensifies.