Incident 1: The company recently released its 2023 annual report, achieving net profit of 15.968 billion yuan, or +91.15%, achieving net profit of 158 million yuan and +165.89%, achieving deducted non-return of 0.69 million yuan, same +118.81%; in the fourth quarter of 2023, it achieved operating income of 6.556 billion yuan, or +82.80%, and +72.25%, achieving net profit of 15 million yuan, same + 69.42%, ring -308.84%.

Incident 2: The company recently released its 2024 quarterly report, achieving revenue of 2,947 million yuan, +89.97%, and 55.05%, achieving net profit attributable to mother of 0.24 million yuan, same -10.18%, ring +60.01%, achieving deduction of 16 million yuan without return to mother, -17.07%, and ring +128.26%.

The company has high quality domestic and foreign brand channels, actively promotes integrated layout, and returns to the top ten shipments in the industry. The company actively promoted the integrated production capacity layout. The first phase of the 10GWTopCon production capacity built in Wuhu was put into operation in October 2023 and fully completed by the end of the year. The 12GW high-efficiency large-size module production capacity of the company's Funing base was fully put into operation and production in November 2023. By the end of the report, the company had formed a 10GWN high-efficiency battery production capacity and 30GW high-efficiency module production capacity, which effectively helped the company's shipment growth. With high-quality products and brand channels, the company achieved rapid growth in sales in domestic and foreign markets. In 2023, the company achieved annual shipments of 16.42 GW, returning to the top ten shipments in the industry.

Industry-research collaboration, rich ecosystem of component products. In terms of battery technology, the company closely follows the TopCon technology iteration, maintains the first tier, and simultaneously carries out technology research and product development work for GPC and laminated batteries and modules. As part of the group, the company developed 182 and 210 large-size TopCon single and double glass modules, using advanced technologies such as reflective film strips, glazed grids, reflective confluence strips, and double coated glass to improve module efficiency. At the same time, for the different use scenarios of module products, “Lotus” modules can effectively reduce power generation losses and the risk of hot spots caused by photovoltaic module dust accumulation. The BIPV module “Xinfuding” has completed small-batch trial production and has large-scale mass production capacity.

Adjust the energy storage business strategy, and have abundant reserves for energy storage projects. The company adjusted its energy storage business strategy, promoted production, research and market in parallel, and promoted both domestically and overseas. By the end of 2023, it had connected with nearly 1,000 domestic and foreign customers, nearly 100 overseas certifications, and achieved more than 1 GWh of energy storage reserve projects throughout the year. The company is building a manufacturing base in Kunshan Pingqian Industrial Park, equipped with an energy storage container assembly line with an annual production capacity of 2.5 GWh. It is expected to be put into operation in the first half of 2024. The market and production and research will expand collaboratively to strengthen the resilience of the company's management level.

Investment suggestions: The company develops an integrated layout around the N-type, achieves rapid growth in shipping and revenue, and the collaborative development of optical storage strengthens the company's operational resilience. We expect the company's revenue for 2024-2026 to be 24.692 billion yuan, 27.464 billion yuan, and 33.616 billion yuan, respectively; net profit to mother will be 281 million yuan, 462 million yuan, and 663 million yuan respectively, corresponding to EPS of 0.05 yuan, 0.08 yuan, and 0.11 yuan, respectively, giving it a “buy” rating.

Risk warning: raw material price fluctuation risk, downstream demand risk, increased market competition risk, policy risk.