Event: The company released its 2023 annual performance forecast. In 2023, the company expects to achieve operating revenue of 60 million yuan to 640 million yuan, an increase of 96.1% to 109.2%. Net profit attributable to mother - 270 million yuan to - 180 million yuan; net profit not attributable to mother is expected to be achieved - 280 million yuan to -190 million yuan. The fourth quarter of 2023 is expected to achieve net profit attributable to mother - 178 million yuan to -88 million yuan; net profit deducted from non-return to mother - 181 million yuan to -91 million yuan.
We are deeply involved in medical informatization, and the assisted reproduction business is improving. (1) Medical information technology business: As of the end of June 2023, the company's main products have been successfully used in 32 provinces and more than 2,100 medical institutions across the country, including more than 800 users in the top three hospitals. As demand for medical informatization continues to increase under the wave of informatization, the company's market share is expected to increase further. (2) Medical service business: The country has successively introduced various fertility policies and actively promoted the implementation of assisted reproduction subsidies. The development of the industry continues to improve; furthermore, assisted reproduction medical operating licenses are scarce, and the barriers to entry into the industry are extremely high. As one of the medical institutions approved by the National Health Commission to develop assisted reproductive technology with both IVF-ET and ICSI technology, Queen Mary Hospital has the advantage of early release and technology, and is expected to enjoy industry dividends on a priority basis.
The 9GW annual battery project has been put into operation, and the photovoltaic business is helping to increase performance. At present, the company's smart factory project with an annual output of 9GW of high-efficiency monocrystalline batteries has been put into operation, and the maximum conversion efficiency of the products produced has reached 26.07%.
As of September 2023, the company has shipped more than 200MW. As of October 2023, the sales reimbursement for photovoltaic cells reached nearly RMB 300 million, and the products have been recognized by industry customers one after another. According to the announcement, the company plans to supply a total of about 777 million N-type TopCon monocrystalline cells to Syraf Energy. The total contract amount is estimated to be about 2,922 billion yuan, and the overall photovoltaic business of the company is progressing smoothly. In 2024, the photovoltaic industry will fully embrace the N-type era, and the company is expected to enjoy the dividends of mainstream technology from P-type to N-type with the forward-looking layout of TopCon cell production capacity.
Investment advice: We expect the company's revenue for 2023-2025 to be 6.20/36.72/7.07 billion yuan, net profit to mother of -1.83/1.53/347 million yuan, EPS of -0.60/0.50/1.13 yuan respectively, and PE of -17/20/9 times, for the first time coverage, and a “recommended” rating.
Risk warning: Cross-border business risk, risk of market demand falling short of expectations, competition increasing risk.