Daquan Energy released its 2023 annual report and 2024 quarterly report. In 2023, the company achieved total revenue of 16.329 billion yuan, -47.22% year on year; realized net profit to mother of 5.763 billion yuan, -69.86% year on year; gross sales margin of 40.35%, 34.48pct year on year, net sales margin 35.29%, year-on-year, -26.51pct year on year.
Among them, 23Q4 achieved revenue of 3.451 billion yuan, or -44.90%/-2.88% YoY; net profit to mother of 648 million yuan, -13.81%/-6.00% YoY. 24Q1 achieved revenue of 2,982 billion yuan, or -38.60%/-13.60% YoY; realized net profit of 331 million yuan, -88.64%/-48.95% YoY.
Production and sales of silicon materials increased, and cash costs continued to be optimized. In 2023, the company's polysilicon business grew rapidly, with a total output of 197,800 tons and total sales of 20.00 million tons. With 2023Q4, the company achieved a polysilicon output of 610,000 tons, sales volume of 59,900 tons, unit sales price of 57.42 yuan/kg, unit cost of 46.25 yuan/kg, unit cash cost of 40.68 yuan/kg. In 2024, the company achieved 62,300 tons of polysilicon production, +84.00% year-on-year, sales volume of 54,000 tons, or +113.5% year-on-year. In 2023, the company's polysilicon unit price was 81.12 yuan/kg, the unit cost was 48.70 yuan/kg, and the unit cash cost was 42.70 yuan/kg. The price of 2024Q1's polysilicon is 54.92 yuan/kg, the unit cost is 45.99 yuan/kg, and the unit cash cost is 40.50 yuan/kg.
We have sufficient cash on hand, and we have a strong advantage over the cycle. In Q1 2024, the company's balance ratio was 12.09%, which is at a low level. At the same time, the company's monetary capital was 17.411 billion yuan. The good financial situation is expected to lead the company through the cycle.
Investment advice: Considering the slow decline in silicon prices since April, and that silicon production capacity will still be released in 24, we expect the company's 24-26 net profit to be 10.69/26.50/3.296 billion yuan, -81.5%/+148.0%/+24.4%, corresponding EPS of 0.50/1.24/1.54 yuan, respectively, giving it an “increase in weight” rating.
Risk warning: Industry competition increases risk, and company costs fall less rapidly than expected risk