Incident: The company released its 2023 annual report and 2024 quarterly report. In 2023, it achieved revenue of 1.61 billion yuan, +21.5% year on year; net profit to mother of 450 million yuan, +12.2% year on year; gross profit margin of 48.4%, +1.3 pct year on year. Q1 2024 achieved revenue of 450 million yuan, +29.6% year over year; net profit to mother of 140 million yuan, +44.5% year over year; gross profit margin of 48.7%, +1.6 pct year on year.
Continue to maintain a high level of investment in R&D. The company spent 250 million yuan on R&D in 2023, +91.7%; the R&D cost rate was 15.6%, +5.7pct; by the end of 2023, the company had 262 patents and mastered a number of core technologies related to lasers, laser processing technology, high-precision motion platforms and core modules, electronics and motion control technology, and software technology. In 2024, Q1's R&D expenses were 70 million yuan, +60.4% year-on-year, and the R&D expenditure ratio was 15.5%, maintaining a high level.
Technology drives growth, and many businesses continue to advance. (1) TopCon and TopCon+ processes: laser-induced sintering (LIF), laser-doped equipment to achieve mass production and shipment, and reserve new technologies, including frontal laser selective doping, backside laser selective thinning process, and double-sided Poly laser process; (2) xBc process: laser micro-etching equipment, full equipment for back contact battery metallization to achieve mass production and shipment; (3) HJT process: laser-induced annealing (LIA) equipment continues to receive new orders; (4) Component process: Development of laser-induced annealing (LIA) equipment that is more suitable for 0BB laser components equipment, yes Complete component line equipment is provided to simplify the production process and improve component efficiency; (5) New display technology: TGV laser microporous equipment was launched to process microholes and microgrooves on glass substrates of different materials to provide conditions for subsequent metallization processes. It can be applied to glass substrate chip packaging, and orders are continuously obtained.
Investment advice: We maintain the company's 2024-2025 and add a profit forecast for 2026. We expect the company's net profit to be 7.06/9.53/10.44 billion yuan for 2024-2026, corresponding EPS of 2.59/3.49/3.82, respectively. We believe that photovoltaic technology is still being rapidly iterated and upgraded. The company is leading the development market, and the future business is expected to blossom more and maintain a “buy” rating.
Risk warning: PV demand falls short of expectations; overseas policy risks; company technology development falls short of expectations.