The company is a leading PV module company, and its performance continues to improve. The company focuses on the global business of new energy and materials. Its main business includes crystalline silicon, solar cells, modules, photovoltaic power plants, integrated energy storage systems and smart lamps. The photovoltaic module business is in a leading position in the world in the photovoltaic industry, and shipping data has been at the forefront of the world for many years. The estimated compound growth rate of net profit to mother from 2020 to 2023 is 182.84%-220.98%. The company's production capacity has increased in recent years, and sales volume has increased dramatically. Affected by the increase in the proportion of self-supplied solar cells, the profitability of the company's photovoltaic modules has increased.
The economy of heterojunctions has improved markedly, and cost reduction and efficiency have continued to advance. The company continues to reduce electricity costs with technologies such as low silver paste, 0BB battery technology, lift connection five-stress interconnection technology, and 210 ultra-thin sheets developed for heterojunction. In January 2024, the company announced that it had successfully reduced the amount of pure silver used in heterojunction Foxi components, reaching a leading level of less than 7 mg per watt, and the silver consumption was 30% less than TopCon. Furthermore, the company successfully passed T-V SÜD's 3x IEC environmental test, and the maximum power attenuation rate for a single component test did not exceed 5%. At present, the conversion efficiency of heterojunction Fuxi modules can reach up to 23.9%, and the product yield rate has always remained above 99%.
Production capacity construction continues to accelerate, and the scale of component shipments has increased significantly. As of 2023H1, the company has formed an effective production capacity of 15GW batteries and 25GW components. In the second half of 2023, the company promoted the first phase of Ninghai's 15GW HJT and 15GW module projects, the Jintan 4GWHJT and 6GW module projects, and the Chuzhou 10GW TopCon Phase I section. The production line operation efficiency and processing yield all reached high standards. In 2024, the company plans to gradually launch the Linhai Phase 2 project, and the expected shipment volume will reach 7GW-8GW.
Combined with innovative business models, optical storage has maintained rapid growth in shipments. The company's holding subsidiary Ningbo Shuangyili's products cover batteries, modules, industry, commerce and large-scale energy storage systems. The independently developed liquid-cooled energy storage battery system is the first domestic system to pass UL9540A certification in China and the US. The company has vigorously promoted “optical storage” and “optical storage and charging” integrated solutions. The energy storage projects that have already been put into operation are spread all over the domestic, European, American, and Asia-Pacific markets. In September 2023, the self-developed PCS products delivered by the company will be used in pure off-grid projects for optical diesel storage in the Maldives, becoming an important milestone in the development of the company's energy storage business.
Investment advice: We expect the company's revenue for 2023-2025 to be RMB 313.43/335.66/46.571 billion yuan, net profit to mother of RMB 15.12/17.35/RMB 2.01 billion, EPS of 1.33/1.52/1.84 yuan respectively, and PE of 11.66/10.16/8.39 times, giving it a “recommended” rating.
Risk warning: Cross-border business risk, risk of market demand falling short of expectations, competition increasing risk.