The company's 2023 annual report: Achieved revenue of 6.39 billion yuan for the full year of 2023, +72.6% year-on-year, net profit of 345 million yuan, +676.6% year-on-year, gross profit margin 18.1%, year-on-year +5.7pct: 23Q4 achieved revenue of 2.997 billion, +103.6% month-on-month, net profit of 188 million yuan, +229.3% month-on-month, +229.3% month-on-month, +216.4% month-on-month, gross profit margin 19.9%, year-on-year +6.7pct, month-on-month +2.5pct.
The company's 2024 quarterly report: 24Q1 achieved revenue of 1,814 billion yuan, +122.5% month-on-month, net profit of 154 million yuan, +297.2% year-on-year, -17.9% month-on-month, gross profit margin 20.8%, year-on-year +7.3 pct, and month-on-month +0.9 pct. The 24Q1 performance greatly exceeded expectations, mainly driven by the fulfillment of overseas tracking bracket orders, which led to a sharp rise in volume profit.
Under the two-pronged approach of global layout and cost control, the support business growth performance was impressive.
From the perspective of market expansion, against the backdrop of a rapid decline in the cost of terrestrial power plants and an increase in the penetration rate of tracking brackets, the demand for overseas tracking brackets is rapidly increasing. The company has a forward-looking layout in Asia Pacific, the Middle East, Latin America and other regions, building a global supply system and marketing network to achieve rapid development of the tracking support business. In 2023, we achieved tracking bracket revenue of 3.6 billion yuan, +124% year on year, 7.6 GW shipment, +129% year on year: fixed bracket revenue of 2.06 billion yuan, +26% year over year, shipment 9.4 GW, +30% year over year. In the scaffolding business, overseas revenue of 3.23 billion yuan was achieved, accounting for 57% of overseas revenue, an increase of 6.4 pcts over the previous year.
Looking at the cost control dimension, the company's global production capacity localization layout is combined with procurement model optimization and procurement channel expansion to further control the bracket cost level to achieve a gross profit margin of 18.9% in 2023, exceeding 6 percentage points year on year. Among them, the gross profit margin of the tracking bracket was 20.0%, +5.6 pct year on year, and the gross profit margin of fixed bracket was 16.9%, and +6.2 pct year on year.
Lai Lai Zhan: As of the end of 24Q1, the company had orders of 6.8 billion yuan, including 5.9 billion for tracking brackets (an increase of 2.3 billion over the end of 23, an increase of 64%), 800 million fixed brackets, and 100 million others. Demand is high in PV markets such as the Middle East, India, and Latin America. The company is actively building overseas production capacity. It has already built factories in India and plans to build GW-grade bracket production capacity in the Middle East and Brazil to further meet the needs of local customers. Orders are expected to grow further and contribute to the company's performance growth.
Profit forecast and grant rating: Considering the results of the company's market development and rapid order growth, we are revising the company's performance. We expect the company to achieve 6.5/8.4/10.3 net profit in 24-26 (previously estimated value of 5.3/660 million in 24-25), +90%/+28%/+23% year-on-year. The current stock price corresponds to PE of 20/16/13 times, respectively, maintaining the “increase” rating.
Risk warning: demand falls short of expectations: market expansion falls short of expectations, increased competition: fluctuation in raw material prices, etc.