Incident: The company released its annual report for 2023, achieving revenue of 8.733 billion yuan, +45.43% year-on-year, net profit to mother of 1,634 billion yuan, +56.04% year-on-year, after deducting net profit of 1,525 billion yuan without return to mother, +57.03% year-on-year. Single Q4 achieved revenue of 2,328 billion yuan, +33.15% YoY, +0.27% month-on-month; realized net profit of 411 million yuan, +81.77% YoY and -12.77%. Results continued to increase throughout the year.
The company's profitability remains stable, and R&D investment & cash flow are growing at an accelerated pace. In 2023, the company's gross margin/net margin was 28.95%/18.77% respectively, +3.51/+1.34pct year-on-year, and profitability continued to increase.
R&D investment continued to grow. The company's R&D investment in 2023 was 467 million yuan, +63.46% year-on-year. Net cash flow from operating activities was $3,517 million, +142.36% year-on-year, mainly due to an increase in sales scale and an increase in payment recovery.
Achieve continuous breakthroughs in the manufacturing industry and lay out various battery technology routes. (1) TopCon: The company continues to be recognized by customers for its equipment products with leading PE-Poly technology route layout and advantages, and has developed the Plus series of velvet making equipment products with advanced standards in the industry to further improve conversion efficiency (2) HJT:
The company made a breakthrough in the radio frequency (RF) microcrystal P high-speed high-crystallization rate deposition process for plate PECVD. The average efficiency of 12BB heterojunction batteries based on double-sided microcrystals reached 25.1%, and the battery yield stabilized above 98%. The power of mass-produced double glass modules is at the advanced level in the industry, with the highest power module reaching 738.98W; the module conversion efficiency has reached 23.47% and 23.84% (3) perovskite, respectively: the company has perovskite and perovskite laminated equipment covering RPD, PVD, PAR, CVD, crystalline silicon laminated printing, etc., successfully launched in 2023. It has characteristics such as low bombardment speed and multi-functional options, which can significantly reduce the floor area of perovskite battery equipment.
Based on the accumulation of wet process technology, we are pioneering the field of third-generation semiconductors. The company has 4 to 12 inch wet-type and single-wafer etching cleaning wet process equipment, which can meet the wet process requirements of third-generation semiconductors, etc. In addition, the R&D team has broken through six core technologies, including process furnace chamber design and manufacturing, and has developed silicon carbide high temperature heat treatment equipment, which has passed pre-inspection by leading domestic semiconductor IDM companies.
Investment advice: We expect net profit to be 22.889/31.21/37.41 billion yuan for 24-26, corresponding to a 24-26 PE of 8.6/6.3/5.3x. Maintain a “buy” rating.
Risk warning: PV installation falls short of expectations; market competition intensifies; uncertainty in new product development