Event: The company released its 2023 annual report and 2024 quarterly report. On April 22, the company released its 2023 annual report, achieving operating income of 118.682 billion yuan, a year-on-year increase of 43.55%; achieving net profit attributable to shareholders of listed companies of 7.404 billion yuan, an increase of 153.20% year-on-year, after deducting non-profit 6.904 billion yuan, an increase of 152.09% over the previous year. On April 29, the company released its 2024 quarterly report. In the first quarter, it achieved operating income of 23.084 billion yuan, a year-on-year decrease of 0.30%; realized net profit attributable to shareholders of listed companies of 1,176 billion yuan, a year-on-year decrease of 29.09%, after deducting 191 million yuan for non-profit, a year-on-year decrease of 84.34%.
Component shipments are leading in the world, and gross margin has increased. In 2023, the company's PV product shipments reached 83.56 GW, of which 78.52 GW of PV modules were shipped, an increase of 77.11% over the previous year. According to InfoLinkConsulting, the company's component shipments rank first in the industry. Of the company's 2023 module shipments, the N-type shipped 48.41 GW, accounting for about 62%. The PV module business achieved revenue of 114.383 billion yuan, an increase of 43.33% over the previous year. The average sales price of the estimated component without tax is about 1.46 yuan/W. The profitability of the component business increased throughout the year. The gross profit margin of the component business was 14.43%, an increase of 3.82 percentage points over the previous year. In the first quarter of 2024, the company achieved a total shipment volume of 21.91 GW, including 19.99 GW of modules and 1.91 GW of silicon wafers and batteries. Total shipments increased by 51.19% over the same period last year.
The technology and mass production scale of N-type products remain leading, and the integration rate continues to increase. By the end of 2023, the company had put into production more than 70 GW of high-efficiency N-type batteries, and shipped 48.41 GW of N-type modules throughout 2023, an increase of 352% over the previous year. At the same time, the company continued to break through in R&D and mass production of high-efficiency N-type batteries. The highest R&D efficiency of N-type TopCon batteries reached 26.89%, and the highest R&D efficiency of perovskite laminated batteries based on N-type TopCon reached 32.33%. At the end of 2023, the average efficiency of mass production of N-type batteries exceeded 25.8%. The average efficiency of mass production in the first quarter of 2024 had exceeded 26%, and the power of N-type modules was about 30W higher than that of P-type products of the same version. The company continues to build and improve an integrated production and sales network. By the end of 2023, the vertical integrated production capacity in the three core sectors of silicon wafers, batteries and modules reached 85 GW, 90 GW and 110 GW respectively, and the integrated production capacity support rate reached more than 85%.
Continue to improve the global production capacity layout. In 2023, the company further expanded its global integrated supply chain, including factories in Southeast Asia. By the end of 2023, it had the industry's largest overseas integrated production capacity of more than 12GW silicon wafers, batteries and modules. At the same time, the company actively responds to changes in trade policies in overseas markets, focuses on promoting carbon footprint management, supply chain traceability, ESG, etc., and has made positive progress, laying the foundation for long-term stable supply in overseas markets.
The energy storage business continues to break through. In 2023, the company released a comprehensive energy storage solution covering the source network side, industrial and commercial side, and household side. The product solutions continued to innovate in technology and performance, and signed orders with many power developers, distributors and end customers around the world. In 2023, the company's 4 GWh energy storage system production line was successfully put into operation, and construction of subsequent battery and system production capacity progressed in an orderly manner. In the BNEF energy storage supplier classification list recently released in 2024, Jinko Energy is ranked as a Tier 1 supplier.
Investment advice. Under the current share capital, based on the company's profitability and industry supply and demand, we expect the company's net profit to be 41.01/56.63/7.029 billion yuan in 2024-2026, corresponding PE of 19.37X/14.03X/11.30X, maintaining the company's “buy” rating.
Risk warning: risk of technological change, risk of fluctuating raw material prices, risk of overseas operations, increased risk of industry competition, risk of demand falling short of expectations.