Incident: On April 24, 2024, Jingshan Light Machinery released its 2023 annual report and 2024 quarterly report.
In 2023, the company achieved revenue of 7.214 billion yuan, yoy +48.20%; realized net profit of 337 million yuan, yoy +11.45%; in the first quarter of 2024, revenue of 2,032 million, yoy +53.12%; net profit to mother of 130 million, yoy +143.82%. The year-on-year growth rate of net profit to mother in the first quarter of 2024 was far higher than the revenue growth rate. We believe it was mainly due to the decline in management expenses, sales expenses, and financial expenses. In Q1 2024, this portion accounted for 6.52% of revenue, a year-on-year decrease of 3.11pct. At the same time, Q1 R&D expenses in 2024 accounted for 5.18%, an increase of 0.1 pct year-on-year, indicating that the company's refined governance has achieved results while increasing investment in R&D. By product, the revenue in 2023 was mainly photovoltaic automated production lines and cardboard packaging machinery, accounting for 76.26% and 11.32% respectively. By the end of 2023, the company's PV sector had orders of 9.779 billion yuan (tax included).
Actively expand cell equipment based on the photovoltaic module business. Shengcheng PV is the company's photovoltaic business entity. The component section provides customers with “turnkey” overall solutions, including: 1) Intelligent component equipment: component assembly lines, laminators, laser scribers, glass feeders, packaging lines, etc. At the same time, it can also be compatible with different component products such as conventional, double glass, half sheet, MBB, and stacked tiles according to customer needs; 2) Software systems:
Equipment management system, production management system (MES); 3) overall solution for intelligent logistics and intelligent warehousing.
The battery business includes various technical routes such as perovskite, HJT, and TopCon, including 1) Perovskite: Provides MW grade perovskite and overall solutions, and provides GW grade perovskite mass production equipment output and technical support. At the same time, the company has rich technical reserves, covering various technical routes such as PVD, ALD, and evaporation; 2) HJT and TopCon: The company can provide HJT velvet cleaning machines, HJT silicon wafer cleaning equipment, HJT battery electroplating metallization equipment, and TopCon cleaning and refining equipment. By the end of 2023, the company had delivered more than 10GW of washing and refining equipment.
Build an overall solution supplier for perovskite single section and laminated equipment, and is expected to become a core participant in the perovskite battery field. The company has a high-efficiency perovskite battery test center, a complete MW grade perovskite display line, and a crystalline silicon perovskite laminated battery test line. The company successfully developed equipment technology for perovskite batteries such as glass cleaning equipment, hole layer and electrode layer sputtering equipment, electron transport layer evaporation, full-dry perovskite co-evaporation equipment, and atomic layer deposition. In 2023, the company successfully prepared 500*500mm2 size perovskite components using self-developed equipment, and built an outdoor power station to conduct battery stability tests. In 2023, the number of orders for the company's complete perovskite battery equipment solution project increased significantly. It has mature supply capacity for the entire perovskite pilot line, and successfully obtained orders for multiple perovskite test lines and MW production capacity perovskite complete lines, and cooperated with many customers to carry out process verification and production line construction.
Investment advice: The company is expected to achieve revenue of 87.18/105.91/12.252 billion yuan in 2024-2026 and net profit of 5.18/6.88/1,195 billion yuan, an increase of 53.9%/32.8%/73.7% over the previous year. The current stock price corresponds to PE 16/12/7 times, respectively, maintaining the “recommended” rating.
Risk warning: New PV installations fall short of expectations, and the industrialization of perovskite falls short of expectations.