The company released its three-quarter report for 2023. Revenue for the first three quarters increased 39.38% year on year to 81,119 billion yuan, net profit increased 111.34% year on year to 5.077 billion yuan, and net profit after deducting non-return mother increased 128.49% year on year to 5.120 billion yuan. Q3 The company's revenue increased 41% year on year to 31,736 billion yuan, and net profit was 1,537 billion yuan, up 36% year on year and down 13.27% month on month. Looking ahead to the next quarter, as the company gradually makes up for the shortfall in silicon wafer production capacity, the company's component profit is likely to perform well. In addition, businesses such as company support and energy storage are also expected to contribute to increased performance.
Brief analysis of the Three Quarterly Reports. The company released its three-quarter report for 2023. Revenue for the first three quarters increased 39.38% year on year to 81,119 billion yuan, net profit increased 111.34% year on year to 5.077 billion yuan, and net profit after deducting non-return mother increased 128.49% year on year to 5.120 billion yuan. Q3 The company's revenue increased 41% year on year to 31,736 billion yuan, and net profit was 1,537 billion yuan, up 36% year on year and down 13.27% month on month. In the third quarter, the company calculated credit impairment losses of 145 million yuan and asset impairment losses of 944 million yuan, of which fixed asset impairment (PERC assets), inventory depreciation losses and contract performance cost impairment losses of 321 million yuan (components and energy storage cells).
By business situation. 1) Component business: The company shipped 45GW+ of components in the first three quarters, of which Q3 components shipped 18GW+, confirmed 16GW+, and the net profit per watt was about 0.11 yuan. In addition, the company's silicon wafer production capacity is gradually being replenished. Q3's silicon wafer shipments were about 4 GW; 2) Q3 shipped less than 2.5 GW of distributed systems in the first three quarters, of which Q3 shipped less than 2.5 GW, confirmed that the net profit per watt was 0.18-0.19 yuan, up from 0.14-0.15 yuan in 2022; 3) Scaffolding business: the company shipped about 5.6 GW in the first three quarters; 4) Q3 shipped 2.3 GW in a single quarter, contributing about 20 million yuan in net profit; 4) Energy storage shipments in the first three quarters Below 1Gwh, Q3 A small loss.
Further expand photovoltaic production capacity. On July 1, 2023, the company announced a fixed increase plan. It plans to raise 10.9 billion yuan to build a high-efficiency solar cell project with an annual output of 10 GW in Huai'an (project amount of 3,535 billion yuan, proposed to use 3.277 billion yuan), Tianhe Solar (Dongtai) high-efficiency solar cell project with an annual output of 10 GW of high-efficiency solar cells (project amount of 3,527 billion yuan, proposed to use capital raised 3.268 billion dollars), and Tianhe Solar (Dongtai)'s annual output of 10GW photovoltaic module project (project amount is 1,238 billion yuan, capital raised is 1,095 billion yuan) to supplement liquidity and repay bank loans ($3.26 billion) to further expand photovoltaic production capacity.
Profit forecast and investment advice: Considering the decline in bidding prices for components, the company's net profit for 2023-2024 is estimated to be 7.091 billion yuan and 8.412 billion yuan respectively, with corresponding valuations 9 times and 8 times, maintaining a “highly recommended” rating.
Risk warning: Global PV installations fall short of expectations, and raw material prices continue to rise.