Incident: The company released its 2023 annual report and 2024 quarterly report. In 2023, it achieved operating income of 1,609 million yuan, a year-on-year increase of 21.49%, and realized net profit of 461 million yuan, an increase of 12.16% over the previous year, and a cash dividend of 3.5 yuan (tax included) for every 10 shares; 2024Q1 achieved operating income of 450 million yuan, an increase of 29.60% year on year, and achieved net profit of 135 million yuan, an increase of 44.48% year on year.
Shipments of photovoltaic equipment increased year-on-year, and there are plenty of orders in hand.
(1) In 2023, the sales volume of the company's photovoltaic equipment decreased slightly by 4.30% to 645 units, and the comprehensive unit value of the product increased, driving the company's operating income of laser processing equipment to increase 17.03% year on year to 1,367 billion yuan, and gross margin increased 1.43 pcts year on year to 45.74% year on year. In 2023, the company's photovoltaic equipment shipments increased by 133.20% year-on-year to 1,763 units, which also laid a solid foundation for the company's high revenue growth in 2024.
(2) In 2023, the company's consumer electronics laser processing equipment was once again delivered, and the sector achieved operating income of 7.7699 million yuan and a gross margin of 56.48%.
2024Q1 As revenue from the delivery of equipment was gradually confirmed, the company's revenue and profit scale grew rapidly, and gross margin increased 1.60 pcts year over year to 48.65%. By the end of 2024Q1, the company's contract liabilities increased 120.47% year on year to 1,971 billion yuan, and inventory increased 86.31% year over year to 2,014 billion yuan. Sufficient shipments and on-hand orders in 2023 can guarantee a high increase in the company's performance in 2024.
Continued investment in R&D has been increased, and breakthroughs have been achieved in many new laser technologies.
The company continued to increase investment in R&D and innovation. In 2023, R&D expenses increased 91.65% year on year to 251 million yuan, accounting for 5.70 pcts of revenue, up 5.70 pcts year on year to 15.58% year on year. In 2023, the company achieved breakthroughs in many new technologies. On the TopCon side, the company achieved mass production orders for laser doping (TCSE) and laser-induced sintering (LIF) equipment; on the BC side, the company's laser micro-etching equipment technology led technology and continued to obtain mass production orders from leading companies; on the HJT side, the company's LIA laser repair technology received orders from European customers; in terms of components, the new laser welding process being developed by the company has been delivered to mass production prototypes, which are currently being verified; in the non-photovoltaic industry, the company is actively developing high-end consumer electronics, new displays and integration Laser processing equipment in the field of circuits, etc.
Maintaining a “buy” rating: Due to increased competition in the industry, equipment sales prices have declined. We lowered our profit forecast. The company's net profit for 2024-26 is estimated to be 6.73/8.37/1,010 billion yuan (6% down/10% /increase), and the current stock price is 18 times PE in 2024. The company has sufficient orders in hand, has technical reserves for TopCon, HJT, IBC, perovskite, and metallization, and maintains a “buy” rating.
Risk warning: risk of fluctuations in raw material prices, risk of fluctuations in downstream demand, risk of increased market competition.