The company released its three-quarter report in 2023, showing a high performance. The company's 2023Q1-Q3 realized operating income of 2.187 billion yuan, an increase of 109.76% over the same period last year, a net profit of 166 million yuan, an increase of 185.41% over the same period last year, and a net profit of 160 million yuan after deduction, an increase of 208.64% over the same period last year.
Among them, 23QQ realized operating income of 855 million yuan in a single quarter, a decrease of 130.90% over the same period last year, a net profit of 63 million yuan, a decrease of 259.63% over the same period last year, and a net profit of 60 million yuan after deduction, a decrease of 235.67% over the same period last year.
The demand for environmental protection equipment is high, and there are plenty of orders on hand. Photovoltaic capacity expansion and N-type technology iteration has led to a high demand for photovoltaic process pollution equipment. We estimate that the cumulative potential market space for photovoltaic battery environmental protection supporting equipment from 2023 to 2025 will reach 32.277 billion yuan. At the same time, with the stricter environmental regulation of the non-electric industry and the promotion of ultra-low emission transformation, the demand for environmental protection equipment in the non-electric industry, such as iron and steel, will usher in a larger growth space. By the end of September this year, the company had announced that the order for new environmental protection equipment had exceeded 5.3 billion yuan.
The TOPCon battery project is progressing smoothly and the landing performance of the production line is worth looking forward to. The company signed the "High efficiency Solar Cell Project Investment Cooperation Agreement" with Ningguo Economic Development District in January 2023, and intends to build 24GW high-efficiency N-type TOPCon cell project in Ningguo Economic Development District, which is divided into two phases with a total investment of 7.5 billion yuan. The company plans to build an annual 18GW high-efficiency N-type single crystal TOPCon solar cell project, which starts construction in April 2023 and is fully completed and put into production in November 2023. Considering the climbing commissioning after the project is put into production, we expect the company's 18GW capacity to be fully produced in 24Q1 and contribute to the performance in 24 years.
Executives propose to buy back the company's shares, demonstrating long-term confidence in development. On October 26, Mr. Dong Shihong, the company's controller and chairman, proposed that the company should use its own funds to buy back the company's shares and use it for the employee stock ownership plan. the total amount of the repurchase funds should not be less than 40 million yuan and no more than 80 million yuan. Mr. Dong Shihong promised to convene the board of directors to review the share buyback as soon as possible and to vote in favour of the motion at the board meeting. The real controller buyback proposal demonstrates the confidence and value recognition of the company's future development, and is expected to further improve the company's incentive mechanism, fully mobilize the enthusiasm of employees, enhance team cohesion, and help the company's long-term high-quality development.
[investment advice]
Taking into account the company's impairment loss of 76 million yuan in the third quarter of this year, we adjust our profit forecast and estimate that the company's net profit for 2023-2025 will be 277,986 and 1.453 billion yuan, respectively, and EPS will be 6.8710.11 yuan, respectively, and the corresponding current price PE will be times that of 19-5-4, maintaining the "buy" rating.
[risk Tip]
The company's capacity construction is not as good as expected.
Industry competition intensifies
Downstream demand is lower than expected.