The company released a quarterly report, which was better than expected. The company released its three-quarter report on October 30. 23Q1-3 achieved revenue of 1,152 million yuan, +9.40%, net profit of 340 million yuan, net profit of 340 million yuan, net profit of 328 million yuan, net profit of 328 million yuan, +2.31% year-on-year; looking at 23Q3 alone, the company achieved revenue of 478 million yuan, +23.25% year-on-year, and net profit of 165 million yuan, +37.23% year-on-year, and net profit of 160 million yuan, +42.02% year-on-year.
Gross margin is stable, net interest is clearly rising, and contract liabilities are high. Single Q3 gross profit margin was 49.59%, +2.37pct, +0.15pct, net profit margin 34.58%, +3.52pct, +9.83pct month-on-month. Gross margin was relatively stable and net profit margin increased significantly. On the one hand, it was due to a decrease in expenses due to rising revenue (+46.52%), and on the other hand, other income stemming from 40.64 million yuan, a significant increase over Q2; as of 23Q3, the company's contract debt was 1,658 billion yuan, +19.91%, +214.57% yoy; 23Q3 inventory was 1,671 billion yuan, +15.67% month-on-month and +133.96% year-on-year.
Benefiting from advances in photovoltaic technology, multiple routes have gradually progressed. According to the investor relations record sheet released by the company on October 30, in the third quarter of 2023, the company's laser LIF technology applied to the TopCon battery process received customer approval and mass production orders as soon as it was launched; in the BC battery process, the leading company announced the selection of the BC route. The company's laser technology applied to BC batteries has already received 10GW+ orders this year; in terms of HJT batteries, the company's LIA laser repair technology received 2GW orders from European customers this year.
Profit forecasts and investment advice. It is estimated that the company's net profit from 2023-2025 will be 48/6.73/809 million yuan, respectively, and the corresponding PE will be 38x/26x/22x, respectively. The company's core laser products have high value changes and order flexibility in the new process. We have maintained the PE we have given the company for 23 years at 50X, and the corresponding reasonable value is 83.91 yuan/share, maintaining a “buy” rating.
Risk warning. Downstream production expansion fell short of expectations; raw material prices fluctuated; new product technology development and progress fell short of expectations; competition intensified.