Revenue for the first three quarters of 2023 increased 9.40% year over year, and net profit increased 0.93% year over year. The company achieved revenue of 1,152 billion yuan in the first three quarters of 2023, an increase of 9.40% over the previous year; net profit of the mother was 339 million yuan, an increase of 0.93% over the previous year. Looking at a single quarter, the third quarter of 2023 achieved revenue of 478 million yuan, an increase of 23.25% over the previous year, and net profit of 165 million yuan, an increase of 37.23% over the previous year. The company's gross margin/net margin for the first three quarters of 2023 was 48.78%/29.48%, with a year-on-year change of +1.86/-2.48 pct; the gross margin/net margin for the third quarter of 2023 was 49.59%/34.58%, respectively, a year-on-year change of +2.38/+3.53 pct. On the cost side, the sales/management/R&D/finance expense ratio for the first three quarters of 2023 was 3.39%/4.34%/14.02%/-2.17%, respectively, with year-on-year changes of +0.50/+1.19/+5.20/+0.07 pct. The company continued to increase investment in new product development.
The increase in on-going orders will support the company's future performance growth. As of September 30, 2023, the company's contract debt was 1,658 billion yuan, up 214.61% year on year and 19.88% month on month. The sharp increase in contract debt indicates a high increase in the company's orders and supports rapid growth in the company's future performance.
BC is a leader in laser equipment, making breakthroughs in new products in various fields. On the TopCon side, as of September 30, 2023, TopCon's laser doping equipment has signed a new 500GW+ contract. Furthermore, the laser-induced sintering technology (LIF) launched by the company can be superimposed on the existing TopCon process, which can improve efficiency by more than 0.2%. Currently, it has received batch orders; on the HJT side, LIA laser repair technology has received mass production orders from customers; BC, the company is the leader in the BC laser field, leading technology in 2022, the company has received nearly 40 GW of mass production orders from BC, 2023 As leading companies choose the BC technology route, the company is expected to fully benefit in the future; in terms of perovskite, the company's laser equipment has corresponding applications in every layer of perovskite batteries, and orders for perovskite process equipment have already been delivered; in terms of laser transfer, the company's laser transfer technology covers TopCon, BC, and HJT processes, and the company has already achieved mass production orders for high-precision, ultra-fine graphics equipment applied to lasers. In terms of modules, the photovoltaic module welding laser process being developed by the company can reduce battery damage and improve welding quality. BC module laser equipment has now been delivered for mass production and is currently being verified. In terms of display panels, the company has carried out R&D and prototype trial production of processes such as laser repair and laser peeling; in addition, the company has begun to develop semiconductor packaging, TGV laser microporous processes in the consumer electronics field, and has completed small-batch order delivery in the consumer electronics field.
Risk warning: new PV installations fall short of expectations; industry competition intensifies; new product development falls short of expectations.
Investment suggestions: The company is a leader in laser equipment. There have been breakthroughs in multiple technology routes, and the company has sufficient orders, but considering the delay in the delivery of the company's orders, we slightly lowered the company's net profit from 2023-25 to 5.07/7.53/1,011 billion yuan (previous value was 6.03/8.22/10.67), corresponding to PE 22/15/11 times, giving it a “buy” rating.