JPT released its three-quarter report for 2023:
First three quarters of 2023:
1) Achieved revenue of 904 million yuan, +12.1% year-on-year; realized net profit of 84 million yuan, +64.12% year-on-year; realized net profit of deduction of 68 million yuan, +57.31% year-on-year.
2) Gross profit margin of 39.45%, y-o-y +6.03pct; net profit margin of 9.29%, y-o-y +2.94pct; net profit margin minus 7.47%, y-o-y +2.15pct.
3) The cost rate for the period was 27.27%, +0.97pct year on year. Sales/management/R&D/finance expense rates were 7.53%, 8.18%, 11.9%, and -0.35%, respectively, with year-on-year changes of 0.55, 0.88, -2.12, and 1.66 pct, respectively.
2023Q3 single quarter:
1) Achieved revenue of 338 million yuan, +35.26%, +25.42% month-on-month; realized net profit of 35 million yuan, +149.28% year-on-year, +86.22%; achieved net profit deducted from non-return mother of 026 million yuan, +152.96% year-on-year, +82.46% month-on-month.
2) Gross profit margin is 41.94%, +8.69pct, +2.35pct; month-on-month net profit margin is 10.34%, +4.73pct, +3.37pct; net profit margin minus 7.74%, +3.6pct year-on-year, +2.42pct month-on-month.
3) The cost rate for the period was 27.53%, -1.36pct, -0.8pct, month-on-month. The sales/management/development/finance expense rates were 8.9%, 8.23%, 10.5%, and -0.1%, respectively, with year-on-year changes of 0.78, 0.26, -6.25, and 3.85 pct, and 1.32, -1.63, -3.02, and 2.53pct, respectively.
Revenue growth performance is good, gross margin continues to improve, and the performance growth rate is impressive. In the first three quarters, revenue from domestic replacement laser products in the field of new energy lithium batteries increased and revenue from intelligent equipment products increased, and revenue growth was steady. The laser business divested from cutting continuous lasers with intense price competition and switched to lasers for welding applications. The increase in the revenue share of intelligent equipment with higher gross margins led to a significant increase in gross margin over the same period last year. The cost side is well controlled. Under a combination of factors, the company's profit has increased.
1. Lasers: 1) Mopa lasers are the company's strong products. In 2022, the company developed MOPA pulsed lasers for battery electrode cutting for customers in the power battery industry, pioneering the domestic replacement of pulsed lasers in the power battery industry. 2) Continuous lasers: The company has escaped the price war and optimized the continuous laser product team to continuous laser product development and production for welding applications. In 2022, the company completed the domestic replacement of lasers in some welding processes for power batteries for customers. In 2023, the company continued to optimize lasers for lithium battery processing and completed the domestic replacement of the customer's lithium battery processing high-speed demonstration line lasers.
2. Laser/optical intelligent equipment: The core focus is on the flexibility of XR testing equipment. The company has maintained close communication with leading customers in the industry for a long time. On the basis of delivering MR optical calibration equipment to them in 2022, the company has also developed more equipment for the optical inspection of their MR optical modules. Relevant equipment will be able to further enhance the overall experience of users when using MR equipment and enhance the competitiveness of customer MR equipment products. In the first half of 2023, the company assisted customers in developing their second-generation MR products and plans to add more optical inspection projects. In the same period, customers released their MR products, and the market gave high praise to the performance and performance of their products. With the official launch of this product, it is expected to drive overall demand for the MR circuit and further drive the overall growth of the consumer electronics industry through technological innovation.
3. The company continues to expand into new fields. 1) In terms of lithium batteries, the company's laser products have largely replaced imported lasers, making it the customer's first choice for lithium battery processing. 2) In terms of photovoltaics, the company has prepared a number of technical routes. On the one hand, the company's self-developed lasers on the crystalline silicon photovoltaic technology route provide customers with innovative solutions to improve photoelectric conversion efficiency, becoming one of the first manufacturers in the industry to achieve batch shipment of TopCon SE laser-doped light sources; on the other hand, the company can provide a series of laser intelligent equipment for high-precision thin-film battery marking for different production capacity requirements and product categories in the photovoltaic perovskite field. It can cover P1 to P4 laser die cutting and laser edge cleaning processes in perovskite battery production. In 2023, JPT successfully won its first 100 megawatt order and cooperated with GCL Optoelectronics, a leading perovskite photovoltaic cell company, to build a complete set of laser marking equipment for its 100MW perovskite photovoltaic cell mass production line. This marks a new milestone in JPT's perovskite photovoltaic cell laser marking technology. At the end of July 2023, a complete set of 100MW perovskite laser scribing equipment was successfully delivered to the client. At present, the company has begun to lay out and develop next-generation GW mass production lines. It is believed that the perovskite technology route will occupy a more important position in the photovoltaic industry in the future as its technology matures.
Profit forecast and valuation: We expect the company's 23-25 operating income to be 14.25/21.47/2,755 billion yuan, yoy +21.49%, 50.59%, 28.35%, net profit of 1.43/2.54/334 million yuan, yoy +87.06%, 76.91%, and 31.47%, corresponding to PE53/30/23X, giving it a “recommended” rating.
Risk warning: international trade risks, new product verification not progressing as expected, demand in the new energy sector falling short of expectations, risk of XR product volume falling short of expectations