Incident: The company released its 2023 annual report & 2024 first quarter report. In 23, it achieved revenue of 1,609 million yuan, +21.49% year on year, net profit to mother of 461 million yuan, +12.16% year over year, net profit of 431 million yuan after year. Among them, Q4 achieved revenue of 457 million yuan, +68.36% year over month, and -4.35% month on month; net profit to mother reached 122 million yuan, +62.66% year over year, and -26.37% month on month. The 24Q1 quarter achieved revenue of 450 million yuan, +29.60% year-on-year, -1.46% month-on-month, and realized net profit of 135 million yuan, +44.48% year-on-year and +11.00% month-on-month. Q1 Performance improved significantly from month to month.
Profitability remains high, and contract liabilities continue to rise. The company's gross margin/net margin in '23 was 48.38%/28.66%, respectively, -1.29pct/-2.39pct. Profitability is still high. We expect that with the gradual confirmation of XBC laser equipment order revenue, the company's profitability is expected to increase further. As of the end of 24Q1, the company's contractual liabilities were 1,971 billion yuan, +120.42% year-on-year, with a high increase in on-hand orders.
Laser technology broke through the lead, orders rose, and laser equipment was deployed in other fields. Laser technologies such as TopCon, IBC, HJT, and perovskite all have new laser technology coverage and order fulfillment. (1) TopCon: TopCon laser doping (TCSE) and laser-induced sintering (LIF) equipment to achieve mass production orders; (2) BC: laser micro-etching equipment used in back contact batteries (BC), the company has advanced technology and continues to obtain mass production orders from leading companies; (3) HJT: In the HJT battery process, the company's LIA laser repair technology has received orders from European customers; (4) Components: The new laser welding process the company is developing, which can simplify the production process, reduce battery damage, and improve welding quality. The company has now delivered A mass-produced prototype, currently under verification.
The LIF equipment project has achieved mass production, and the prospects for implementation are good. In August 2023, the laser-induced sintering technology (LIF) developed by the company in collaboration with industry customers completed process verification on TopCon batteries, which can effectively improve battery conversion efficiency by more than 0.3%. LIF equipment is a completely new equipment. We expect the company to replicate SE equipment, obtain 70% market share in the industry, and respond to orders of more than 500 GW.
Investment advice: We expect the company to achieve net profit of 643/7.42/910 million yuan in 24-26, corresponding to a PE of 19.2/16.7/13.6x in 24-26, maintaining a “buy” rating.
Risk warning: PV installation falls short of expectations; uncertainty in equipment development