Dike Co., Ltd. is a leading company in silver paste for photovoltaic cells, and its market share is among the highest in the industry. In 2023, the company's business performance and various financial data were outstanding:

1) Annual revenue of 9.603 billion yuan, a sharp increase of 154.9% over the previous year; net profit to mother was 386 million yuan, which significantly turned a loss into a profit.

2) The annual gross profit margin was 11.1%, up 2.3% from the previous year; the period expense ratio was 6.0%, down 2.2% from the previous year.

The PV silver paste industry is an asset-light model. Driven by downstream N-type demand, volume and price increases can be expected in 2024:

1) Volume: We predict that in 2024, the global PV installed capacity will exceed 400GW, and will continue to rise steadily compared to 23; the market share of N-type TopCon batteries will increase dramatically in 24, and TopCon modules is expected to be shipped to more than 300 GW in '24. In addition to the increase in overall demand, TopCon batteries also require a higher consumption of silver paste than PERC types.

2) Price aspect: TopCon batteries require higher technical requirements for silver paste, so they have higher processing costs or gross profit margins than PERC types.

Dike Co., Ltd. has a leading market position and outstanding technical advantages for N-type TopCon products:

1) Product and market aspects: The company's TopCon silver paste sales reached 1008 tons in 2023, and TopCon silver paste accounts for 80% of the Q4 shipping structure; second, the company continues to promote domestic silver powder replacement and self-built upstream silver nitrate powder projects, which can further reduce costs and ensure supply chain stability; third, the company also maintains stable sales relationships with high-quality customers such as Jingke Energy, Tongwei Co., Ltd., and Tianhe Solar Energy.

2) Technical aspects: The company has a deep technical accumulation in the field of TopCon silver paste. It has made research and development progress in silver reduction technologies such as fine line printing, 0BB, laser transfer, and silver coated copper paste, and efficiency improvement technologies such as laser-assisted sintering (LECO) have also rapidly entered the industrialization stage.

Risk warning: risk of industry policy fluctuations, increased competition risk, risk of new technology substitution, risk of product price fluctuations.