① Xinbo Co., Ltd. expects net profit attributable to shareholders of listed companies to be 290 million to 340 million yuan in 2023, an increase of 54.23% to 80.83% over the previous year. ② The company said that the growth is mainly benefiting from the rapid development of the new energy photovoltaic industry, and the company's production capacity is expanding rapidly.
Financial Services Association, January 23 (Reporter Zhao Zixiang) The PV module price war is raging, yet suppliers of PV auxiliary materials and accessories are enjoying industry dividends. Xinbo Co., Ltd. (003038.SZ) announced the 2023 pre-increase announcement tonight. The net profit scale has further increased. At the same time, it is expected that the lowest value in the net profit growth range is close to the best level in history, and the annual net profit growth rate may reach a new high after listing.
According to the announcement, Xinbo Co., Ltd. expects net profit attributable to shareholders of listed companies to be 290 million yuan to 340 million yuan in 2023, an increase of 54.23% to 80.83% over the same period last year. A Finance Association reporter noticed that previously, the highest annual net profit growth rate since the listing of Xinbo Co., Ltd. was about 55.4%.
Regarding the sharp increase in performance, Xinbo Co., Ltd. said that it has mainly benefited from the rapid development of the new energy photovoltaic industry. At the same time, the company's production capacity is expanding rapidly, while actively expanding customers, continuously improving management standards, reducing costs and increasing efficiency, and the company's operating income and profit have achieved steady growth.
In addition, the company's estimated impact of non-recurring profit and loss on net profit in 2023 is about 32.5 million yuan, mainly government subsidies received.
According to public information, Xinbo Co., Ltd. is mainly engaged in R&D and production of industrial aluminum profiles, industrial aluminum parts and construction aluminum profiles. The main products are divided into three categories: industrial aluminum profiles, industrial aluminum parts, and construction aluminum profiles.
In recent years, the high increase in PV installed capacity has supported demand for photovoltaic aluminum profiles, driving the company's production and sales growth of new energy photovoltaic aluminum profiles and aluminum components. According to brokerage research reports, the company's previous fund-raising project of 100,000 tons of photovoltaic aluminum components has basically been in full production since July last year.
According to SMM data, the PV sector's demand for aluminum mainly comes from the consumption of PV module frames and PV brackets. In 2022, the total consumption of aluminum is about 40.94 million tons, and the photovoltaic sector consumes 2.2 million tons, accounting for 5.4% of the total consumption; in 2023, the total domestic aluminum consumption is expected to be about 41.45 million tons, and the photovoltaic sector uses 2,843 million tons of aluminum, accounting for nearly 7% of total consumption of electrolytic aluminum, an increase of 1.6 percentage points.
According to information, Xinbo Co., Ltd. previously planned to build 120,000 tons of aluminum frame production capacity and 120,000 tons of recycled aluminum production capacity in Vietnam and Malaysia. The overseas plant is expected to be put into operation in the second half of 2024. In December of last year, Xinbo Co., Ltd. revealed during an investigation by investors that projects in Malaysia and Vietnam are being implemented, and all work is continuing to advance, aiming for early commissioning.
A Financial Services Association reporter learned that among photovoltaic manufacturers, leading component manufacturers such as Longji Green Energy, Jingao Technology, Tianhe Solar, and Dongfang Risheng all have module production capacity in Southeast Asia, and there is a large market space. Some market participants believe that if Xinbo Co., Ltd. is building a production base in Southeast Asia, it can support the production capacity of nearby component plants. Since overseas component sales have high premiums, supporting materials are also expected to earn excessive profits compared to domestic ones.
It is worth mentioning that the current sales price of downstream PV modules continues to fall, causing market concerns. A month ago, how did investors view the certainty of the company's performance growth under the premise that PV demand growth may slow down in 2024? Xinbo Co., Ltd. said that on the one hand, falling module prices will further stimulate demand for downstream photovoltaic power generation installations; on the other hand, it will force enterprises to reduce costs and increase efficiency. By extending upstream, the company will reduce raw material costs, continuously improve the degree of automation and production efficiency, and minimize the impact of price transmission on the company.
In addition, the company also added, “By gradually increasing the share of leading component manufacturers, the company is confident that it will maintain steady growth in performance over the next 3-5 years in ensuring the saturation of production capacity utilization and the efficiency and effectiveness of cost reduction.”