Incident: In 2023, the company achieved operating income of 12.259 billion yuan, a year-on-year increase of 28.01%, achieved net profit attributable to shareholders of listed companies of 527 million yuan, an increase of 31.18% over the previous year, and achieved deducted non-net profit of 490 million yuan, an increase of 75.94% over the previous year. 2024Q1 achieved operating income of 1,288 billion yuan, a year-on-year decrease of 52.43%, realized net profit attributable to shareholders of listed companies - 172 million yuan, a year-on-year decrease of 268.11%, and realized deduction of non-net profit - 193 million yuan, a year-on-year decrease of 253.67%.
In 2023, all business segments of the company operated steadily and steadily promoted management work. In the photovoltaic auxiliary materials sector, in 2023, the company will focus on promoting the “250 million square meter general-purpose photovoltaic backpanel project with an annual output of 250 million square meters” and multi-series photovoltaic backpanel R&D and production work. Backpanel production and sales climbed to the peak of the industry. The annual backpanel sales volume was about 256 million square meters, setting a record high in the company's backboard shipment history, further stabilizing the company's leading backboard position. In the high-efficiency battery sector, in 2023, the company accelerated the “16 GW High Efficiency Monocrystalline Battery Smart Factory Project”, realized the commissioning of the first phase of the 8GW project, and completed the equipment installation work for the second phase of the 8GW project. The battery mass production conversion efficiency is in a leading position in the industry. In the high-efficiency component sector, in 2023, the company stepped up efforts to develop and serve overseas sales markets, and the scale of the component business was further enhanced. The PV Application Division is responsible for the photovoltaic application system business. In 2023, the company continued to expand the scope of business and increase the “circle of friends” of partners. The EPC business for household distributed power plants completed 1.5GW connected to the grid, and the centralized ground power station EPC business completed 253 MW connected to the grid. Thanks to the joint efforts of various business sectors, the scale of the company's operating efficiency has grown steadily.
Increase R&D innovation and consolidate the company's core competitiveness. In 2023, in terms of photovoltaic auxiliary materials, the company released a ceramic backplate product. The product further enhances the reliability of the product while meeting the future development trend of the photovoltaic industry while meeting the future development trend of the photovoltaic industry. At the same time, the company paid more attention to the functionality and customization of backpanels to provide customers with comprehensive packaging solutions according to the requirements of different application scenarios; in terms of high-efficiency batteries, the company successfully developed JSIM technology (special injection metallization technology), which can effectively improve the photoelectric conversion efficiency of the battery, and solved the power attenuation problem of TopCon modules after humidity and heat testing, eliminating double Obstacles to single-sided glass module packaging. In addition, 0BB has made further breakthroughs in technology research and development. The efficiency of the company's 182-size TopCon battery laboratory reached 26.7%, leading the industry; in terms of high-efficiency components, the company released anti-wind modules, which have excellent performance of “three low and four antibodies”, and significantly reduced carbon emissions. Furthermore, the respiratory model of the company's components was successfully verified, correcting the industry's misunderstandings about component structure and reliability, and reshaping the industry's confidence in single-glass modules.
State-owned holdings empower the company's high-quality development. In February 2023, the controlling shareholder of the company was changed to Zhejiang Electric Power, and the actual controller was changed to Zhejiang State-owned Assets Administration Commission, and the company became a subsidiary of Zhejiang Energy Power under Zhejiang Energy Group Co., Ltd. In terms of financing, support the company to introduce policy banking, offsite bank credit and other methods to broaden financing channels, reduce the company's average financing costs, short-term liabilities, and restricted monetary capital ratios to meet the company's capital needs while reducing the company's capital usage costs; in terms of R&D and innovation, promote cooperation between the company and Zhejiang Baima Lake Laboratory to jointly explore cutting-edge fields of photovoltaic technology to help the company form a scientific and technological innovation ecosystem; in terms of business collaboration, strengthen business exchanges between enterprises under the Zhejiang Energy system, give full play to the company's market influence and competition power.
Investment advice: As prices in the industrial chain gradually bottomed out and stabilized, the company's new production capacity was released one after another. The company's net profit for 2024-2026 is estimated to be 3.85/5.14/567 million yuan, corresponding to PE of 21X/16X/14X. Maintain a “buy” rating.
Risk warning: Industry competition increases risk, raw material price fluctuation risk, PV industry demand falls short of expectations.