The core supplier of photovoltaic laser equipment, the products are fully used in various battery technologies. The company was founded in 2008 and is an enterprise that provides comprehensive solutions for all high-efficiency solar cell laser processing with independent innovation laser technology. The company has R&D and production bases in Wuhan and Wuxi, as well as global R&D centers in Tel Aviv and Singapore, Israel. In 2014, mass-produced PERC laser ablation equipment was launched, and SE laser doping equipment was successfully developed in 2016. Currently, the products have been applied to new high-efficiency solar cells and module technologies such as PERC, MWT, and TOPCON.
Performance grew steadily, and the iteration of photovoltaic technology led to the introduction of new equipment. In '23, the company achieved operating income of 1,609 billion yuan, up 21.49% year on year, net profit of 461 million yuan, up 12.16% year on year, net profit of 431 million yuan, up 10.25% year on year; 24Q1, achieved operating income of 450 million yuan, up 29.60% year on year, and net profit of 135 million yuan, up 44.48% year on year, net profit of 127 million yuan year on year, up 40.86% year on year. In 23, the company benefited from the iteration of new photovoltaic technology, achieved the introduction of new laser technology, maintained steady revenue growth, and good business conditions.
Continue to invest in R&D and actively reserve new battery technology directions. The company continued to increase investment in R&D. In 21-23, R&D expenses reached 104, 1.31, and 255 million yuan respectively, with R&D expenditure rates of 8.24%, 9.88%, and 15.58% respectively. It has numerous technical reserves on TopCon, BC and other routes, further enhancing the company's core competitiveness. In 2024, the company expects that new orders will mainly come from TopCon+, BC and other route-related equipment. As of 24Q1, the company's contract debt was 1,971 billion yuan, an increase of 120.42% over the previous year.
Lay out new display and semiconductor devices to open up new business growth points. While the company continues to be deeply involved in photovoltaics, it will also expand into the fields of semiconductors, panel displays, and consumer electronics. TGV laser microporous equipment enables micro-hole and micro-slot processing of glass substrates of different materials through precision control systems and laser modification technology, providing conditions for subsequent metallization processes. It is used in semiconductor chip packaging, display chip packaging and other fields.
Profit forecast and rating: We expect the company's net profit to be 610, 7.40, and 898 million yuan respectively for 24-26, up 32.3%, 21.3%, and 21.4% year-on-year. Referring to the 24-year valuation level of comparable companies, we gave the company a 24-26 PE valuation in 24 years, with a corresponding reasonable value range of 53.61-58.08 yuan, giving it a “superior to the market” rating.
Risk warning: Competition intensifies; industry demand declines; production capacity investment falls short of expectations; expansion in new fields falls short of expectations.