Event
Armarton released its three-quarter report for 2023, Q1-3 realized operating income / net profit from return to mother / deduction of net profit from non-return to mother: 26.91 Universe 0.83 million yuan, yoy+17.7%/+40.0%/+63.8%. Among them, Q3 realized income / return net profit / deduction of non-return net profit 10.04, 0.44 yoy+23.1%/+170.6%/+173.8%.
Photovoltaic glass sales increased sharply, gross profit margin increased
23Q1-3, the company achieved a gross profit margin of 7.85%, of which 23Q3 gross profit margin of 8.81%, year-on-year + 0.72pct, month-on-month + 1.15pct. Benefiting from the rapid development of the photovoltaic industry and market demand for two-wheel drive and the substantial increase in ≤ 2.0mm photovoltaic glass production and sales, the company's deep processing profit improved in the third quarter compared with the previous quarter.
Continuous optimization of expenses and obvious improvement in profitability
The sales / management / finance / R & D expense rates of 23Q3 are 0.13% 1.46% 0.49% 2.35% respectively, compared with the same period last year-0.03/-0.18/+0.4/-1.02pct, the company has good cost control ability. To sum up, 23Q3 achieved a net interest rate of 4.56%, up 2.49pct from a year earlier and 1.85pct from a month earlier. The CFO of 23Q1-3 was 386 million yuan (- 68 million yuan in the same period last year), and the operating cash flow improved significantly.
The advantage of ultra-thin photovoltaic glass is highlighted, consolidating the competitive position in the market.
The company has been ploughing deeply in the field of photovoltaic glass deep processing for many years, and has formed its own technological leadership in the field of ultra-thin photovoltaic coated glass. The company is the first company in the domestic industry to develop ultra-thin photovoltaic glass with a thickness of 1.6mm, has passed the core customer certification, and has supplied related products to customers in bulk. The sales of 1.6mm ultra-thin photovoltaic glass increased significantly in the first half of 23 years. In the increasingly fierce homogenization competition, the company's differentiated competitive advantage is highlighted, further consolidating the company's leading position in the industry and market.
Profit forecast and investment advice
The company has set up a holding subsidiary to build a new 1.6mm deep processing production line in Benxi, Liaoning and Shijiazhuang, Hebei Province. At the end of 23 years, the company's photovoltaic glass production capacity is expected to reach 180 million to 1.9 billion tons per year, and next year it is expected to reach 230 million tons per year. According to the operation of the company in the first three quarters and the price trend of the original film in the industry, we downgrade our profit forecast and expect the company's 23-25 net profit to be 1.2 million yuan (the previous value is 179,246 million yuan), corresponding to the PE 46-30-22 times, and maintain the "buy" rating.
Risk hint: photovoltaic installation is not as expected, the price of raw materials is higher than expected, and the contract is a framework agreement.