Performance is improving steadily, with three-wheel drive for power equipment, energy storage, and photovoltaics. For the full year of '23, the company achieved revenue of 2,848 billion yuan, +74% year on year; achieved net profit of 120 million yuan, +72% year over year; realized net profit of 117 million yuan without return to mother, +76.91% year over year. 24Q1 achieved revenue of 795 million yuan, +84.68% year over month, -5.40% month on month; net profit to mother of 35.296 million yuan, +165.64% year over month, -1.15% month on month; net profit without return to mother of 332.110 billion yuan, +221.53% year over month, and -8.39% month on month. Overall, the company's performance is improving year by year, and the revenue and profit growth rate is remarkable. The company comprehensively focuses on the three major businesses of “power distribution equipment, new photovoltaic materials, and energy storage systems”, and is guided by the development of intelligent manufacturing, driven by a global vision and innovation, based on the cutting edge of the industry, deeply explores domestic market needs, and actively expands overseas markets to achieve the company's high-quality development.
Power distribution equipment: The basic bus plate is stable, and complete equipment and transformers are expected to provide additional volume. Busbars: Mainly used in power distribution terminals, they have the advantages of greater current, more space-saving, safer and more reliable. In high-current transmission scenarios or application scenarios where space saving is required, bus products have gradually replaced cables. The company's bus products have excellent performance and strong brand power, and have been used in many large-scale projects. Complete equipment and transformers: Complete equipment and transformer products were released in Q24, and revenue has exceeded the full year of 2023. The company has been deeply involved in the power distribution equipment business for many years, has mature technology and production experience, and has cooperated with overseas brands such as Westinghouse and ABB for many years. In the context of the acceleration of power equipment going overseas, we believe that the company can use its technological and channel advantages to further increase the market share of transformers and complete equipment.
Energy storage: The product matrix is rich, and large storage and commercial storage go hand in hand. The company takes “full product line layout, whole industry chain construction” as the development direction of the energy storage system business, with network source side energy storage, industrial and commercial energy storage as the main focus, and household energy storage and portable energy storage to form a full range of energy storage system product matrices. Big Storage: In 2023, among domestic and global DC-side energy storage system solution providers for Chinese companies, Weiteng Electric ranked fifth and seventh respectively; Industrial and Commercial Storage: The company has successively set up subsidiaries in Guangdong and Jiangsu to increase the layout of user-side energy storage power plant project development, operation and maintenance. 215 kWh, 232 kWh, and 372 kW industrial storage standard cabinet products have been put into market application.
Photovoltaic welding belt: Benefiting from the boom in photovoltaics, low-temperature welding belts are expected to release. The company's welding belt sales volume reached 12,700 tons in '23, +106% year-on-year. The company's photovoltaic welding belt products are widely used in first-line photovoltaic module companies at home and abroad. Currently, its products include SMBB welding belts, 0BB welding belts, low temperature welding belts, MBB welding belts, conventional confluence belts, black welding belts, etc. As of 24Q1, the company's SMBB welding tape for TopCon battery technology has accounted for more than 60% of the product structure; in addition, the company's 0BB related products have already been used in downstream clients, which is expected to further increase the company's profits in the future.
Investment advice: The company's revenue for 24-26 is estimated to be 46.59/64.68/8.156 billion yuan, and net profit to mother will be 2.09/3.07/395 million yuan, respectively, and the corresponding PE is 15x/10x/8x. Overall, the company's three major businesses have gone hand in hand. The power distribution business is developing steadily. The share of products such as SMBB, 0BB, and low temperature welding belts has gradually increased and increased profits, and the energy storage business has gradually expanded, maintaining the “recommended” rating.
Risk warning: downstream demand falls short of expectations, fluctuating raw material prices, increased market competition, etc.