Key points of investment
Incident: The company issued the “Double Improvement of Quality and Return” action plan. In order to protect the interests of investors and achieve stable market and confidence, the company will actively take measures to implement the “Double Improvement of Quality and Return” action plan, effectively fulfill the responsibilities and obligations of listed companies, and continuously enhance the company's investment value.
Revenue and profit are high, focus on continuous investment in the main optical storage industry, and there is plenty of room for development. In recent years, the company has seized the development opportunities of the global new energy market. The compound revenue growth rate in 18-22 reached 40%, and the compound net profit growth rate reached 45%. According to the 23-year performance forecast issued by the company, the company made deep efforts in the market and R&D, and achieved rapid growth in core businesses such as inverters and energy storage. The company expects net profit to be 9.3 billion yuan to 10.3 billion yuan in 23, an increase of 159%-187%. The company's optical storage business has a strong brand and significant channel advantages. In the future, it will benefit from continued high growth in the global market and broad development space.
The company continues to use stock dividends and share repurchases to repay investors and boost market confidence.
Since its listing in November 2011, the company has continued to distribute shares and cash dividends. The cash dividends that have been implemented in the past five years are no less than 10% of the cumulative net profit to mother. On 23/9/12, the company reviewed and passed the “Proposal on the Company's Share Repurchase Plan”, which plans to use its own funds to buy back the company's shares and use it for share incentives or employee stock ownership plans at an appropriate time in the future. As of 24/1/31, the company has repurchased a total of 11.512 million shares, accounting for 0.775% of the company's total share capital, with a total amount of 997 million yuan. The company will continue to coordinate the dynamic balance between company development, performance growth and shareholder returns, and continue to enhance investors' sense of attainment.
Adhering to the ESG concept of “green mission, achieving beauty”, the company officially released a zero-carbon implementation path in '23. Specific goals include achieving operational carbon neutrality by 2028, supply chain carbon neutrality by 2038, and net zero supply chain emissions by 2048 to effectively promote sustainable development for ourselves and the world.
Profit forecast and investment rating: Considering the company's strong optical storage brand channel strength, we maintain profit forecasts. We expect the company's net profit to be 98/105/12.6 billion yuan in 2023-2025, an increase of 173%/7%/20%, maintaining a “buy” rating.
Risk warning: Increased competition and policies falling short of expectations.