The performance was in line with expectations. The company released its annual report on April 19. In 23, the company achieved revenue of 8.733 billion yuan, +45.43% year on year, net profit of 1,634 billion yuan, +56.04% year on year, net profit after deducting non-return to mother of 1,525 billion yuan, +57.03% year on year; looking at Q4 alone, the company achieved revenue of 2,328 million yuan, net profit to mother 411 million yuan, +89.37% year on year; increased profitability, 23Q4 gross profit rate 31.85%, +6.46pct; net profit margin 17.69%, +4.67pct yoy.
Multi-field layout of photovoltaics. On the TopCon side, the company continues to be recognized by customers for its leading PE-Poly technology route layout and superior equipment products; on the HJT side, the company has achieved breakthroughs in the radio frequency (RF) microcrystalline P high-speed high-crystallization rate deposition process for plate PECVD and won the bid for mass production HJT line orders from leading global photovoltaic companies. On the Changzhou HJT battery pilot line, the average battery conversion efficiency reached 25.4%; on the perovskite side, it already has the ability to develop and supply MW grade mass-produced complete line equipment for perovskite and perovskite laminated.
The second growth curve is being cultivated. In terms of semiconductors, the company has 4 to 12 inch trough and single-wafer etching and cleaning wet process equipment, successfully developed silicon carbide high-temperature heat treatment equipment, and successfully shipped to a leading domestic semiconductor IDM company after pre-inspection; in the field of lithium battery vacuum special equipment, the company's self-developed double-sided wound copper foil sputtering coating equipment successfully went offline, and the first roll of 4.5 μm composite copper foil was successfully launched, actively promoting the development of composite fluid collectors.
Profit forecasting and investment advice. The company's net profit for 24-26 is estimated to be 28.54/36.21/4 423 billion yuan, respectively, corresponding to the latest PE stock price, which is 7x/6x/5x, respectively. The company actively lays out multiple lines of equipment such as boron expansion, tubular PE-poly, plate/tube PECVD-HIT, and CAT-CVD. Combined with comparable company conditions, we gave the company a PE valuation of 10 times in 24 years. The corresponding reasonable value was 81.95 yuan/share, maintaining a “buy” rating.
Risk warning. The risk of bad debts, the risk of uncertain technological progress, the risk of increased industry competition, the risk of downstream demand fluctuations, and the risk of trade friction.