As a laser equipment company, the company's performance continues to improve. As an innovative company in laser equipment technology, it has successively developed lasers and automation equipment used in important fields such as consumer electronics, power and energy storage batteries, photovoltaic cells, and new displays and sheet metal processing. At the same time, the company is also actively expanding emerging business segments such as medical lasers to consolidate and enhance the company's leading position and core competitiveness in the industry. From 2019 to 2023, the company's revenue grew from 1,031 billion yuan to 4.805 billion yuan, with a compound annual growth rate of 46.93%. In Q1 2024, revenue was 1,047 billion yuan, an increase of 17.04% over the previous year.
Using laser technology as a starting point, we have a steady overseas layout based on core technology. In 2023, the number of domestic new energy vehicles was 9.495 million, a year-on-year increase of 37.9%, and the penetration rate reached 31.6%. Meanwhile, new energy vehicles showed strong growth momentum overseas, with global power battery shipments of 886 GWh, an increase of more than 30% over the previous year.
The company uses laser technology as a starting point to continuously improve the technical capabilities of various product lines, and the development momentum is strong.
Since 2023, the company has rapidly deployed overseas markets. Currently, it has established 8 overseas subsidiaries, and has a comprehensive layout in markets such as Europe, America, South Korea, etc., and is progressing smoothly.
TopCon battery's strategic layout was realized and became a leading manufacturer of photovoltaic laser equipment. The company has continued to develop Topcon and BC related technology for the past two years. The back side Ploy graphics technology is ready for mass production, and the back side technology is expected to be mass-produced in the second half of 2024. Hymson's latecomers took the lead, and orders for photovoltaic laser equipment business increased 100 times. Topcon Laser SE's single doping equipment order has exceeded 300 GW, and its market share has rapidly increased by more than 40%.
Entered the field of medical lasers and achieved breakthrough progress. On May 20, 2024, the company announced that it has successfully developed a new high-power long-wavelength tunable mid-infrared femtosecond laser product, which is a pioneering product in the world. It has achieved watt-level average power and 5-11 micron freely tunable long-wavelength mid-infrared femtosecond pulse output. The company has made breakthrough progress in the medical laser field, and future profitability is expected to continue to benefit.
Investment advice: We expect the company's 2024-2026 revenue to be $57.46/69.85/8.410 billion yuan, net profit to mother of 3.62/4.38/539 million yuan, EPS 1.77/2.15/2.64 yuan respectively, and PE 19.21/15.85/12.90 times, giving it a “recommended” rating.
Risk warning: Cross-border business risk, risk of market demand falling short of expectations, competition increasing risk.