Event description
The company disclosed its third-quarter 2023 report that revenue in the first three quarters was 1.767 billion yuan, an increase of 169.19 percent over the same period last year, while its net profit was 236 million yuan, an increase of 90.84 percent over the same period last year.
Event comment
The photovoltaic field is expected to become the core support of the performance. Considering the current downstream prosperity and industry track attributes, we judge that most of the current profits come from photovoltaic products, of which quartz crucible is the core contribution, and the rising volume and price of crucible business in 2023 provides a strong profit backing for the company; carbon-carbon thermal field is more of the share expansion of the cost advantage of making money.
In the field of thermal field: advanced equipment has been put into production step by step, and the technology has been iterated continuously. During the reporting period, the company's 10 deposition furnaces with a diameter of more than 8 meters have been debugged and officially put into use, and the production capacity of carbon and carbon thermal field products has reached 5500 tons. The company's carbon and carbon production line has achieved large-scale deposition equipment, continuous high-temperature equipment, intelligent key processes, process connection automation, and greatly improved the manufacturing efficiency of thermal field components. At the same time, the company's third-generation intelligent acupuncture equipment has been installed and process verification has been completed, which further improves the productivity and quality consistency of the preform.
A phased breakthrough has been made in the field of negative electrodes, and it is expected to replicate the thermal field of photovoltaic materials in the medium term. During the reporting period, the company carried out systematic research and development of thermal tooling for lithium anode, which has been successfully developed and tried out in many manufacturers of head anode materials, and some customers have entered the pilot stage through the trial of sample parts. As of the disclosure date of this report, the company's customer expansion in downstream photovoltaic wafer manufacturers has been smooth. The main customers are: JinkoSolar Holding Co Ltd, Longji Green Energy, Trina Solar, Yongxiang Photovoltaic, Jing O Technology, Gaojing Solar Energy, Meike Solar Energy, Hongyuan New material, Yuze Semiconductor, Oriental Risheng, Yingfa Dekun, Baofeng Energy and so on.
Quartz crucible: lock overseas quartz sand, medium-term crucible expansion with raw material support. As of the date of disclosure of this report, the company has signed a long-term procurement framework agreement with Sibik of the United States, and the two sides have agreed that the company will purchase a total of 7817 tons of quartz sand from Sibik from 2024 to 2028. Up to now, Jiangsu Xinlieyang has completed the construction and production of No. 7 and No. 8 quartz crucible production lines, including the six production lines that have been built before, there are a total of 8 production lines in Jiangsu Xinlieyang. The company's subsidiary, Sichuan Jiangyou Tianqi Lianyang, plans to build 20 quartz crucible production lines within 2023. At present, 10 production lines have been installed and entered the trial production link; the automatic production line has completed local verification and is carrying out full production preparation. It is expected to be fully put into use in the second quarter of 2024.
Carbon ceramic brake material: disc and sheet collocation, medium-term product combination can be expected. At present, the company has established a cooperative relationship with 21 automobile mainframe manufacturers and supply chain customers, obtained the fixed point of the carbon ceramic disc production project of a key model of a new energy vehicle company, and has begun to supply samples in small batches and multiple batches; the company has obtained the qualification of qualified supplier of seven automobile companies and the qualification of trial production supplier of one automobile company. The company has signed a strategic cooperation agreement with two automobile mainframe factories, relying on its brand and platform, to carry out the research and development of high-performance carbon ceramic brake materials for commercial vehicles and special vehicles. The high-performance carbon ceramic brake disc project of Sichuan Jiangyou Industrial Park has completed the plant construction, and the super-large deposition equipment needed for brake disc production has been installed, debugged and put into use. In addition, the company has made a breakthrough in carbon ceramic plate linings for passenger cars and commercial vehicles, with good braking performance, low braking noise and wear, and developed comfortable and high-performance carbon ceramic plate linings suitable for refitted vehicles, which have passed the loading test.
It is expected that the performance in 2023-2024 will be 400 million to 900 million, corresponding to 25 or 11 times PE, with a buy rating.
Risk hint
1. The yield and volatilization rate of quartz crucible is insufficient. 2. The price performance of photovoltaic thermal field is weak.