Benefiting from the confirmation of existing TopCon equipment orders, the 24H1 high-profit company released a performance forecast. 2024H1 expects net profit to be 1,165 billion yuan to 1,353 billion yuan, +55%-80% year-on-year, after deducting net profit of 1,120 billion yuan to 1,308 billion yuan, or +62.82%-90.13% year-on-year. We expect net profit to be 2,799/35.05/3,969 billion yuan respectively in 2024-2026; comparable to that, the company Wind agreed to have an average PE value of 10 times in 24, giving the company 10 times PE in 24, corresponding to a target price of 80.40 yuan (previous value of 96.48 yuan), maintaining the “buy” rating.

24Q2 net profit center to mother increased 64% year over year

On a quarterly basis, 2024Q2 expects to achieve net profit of 586 million yuan to 774 million yuan, a year-on-year increase of 41%-87%, a month-on-month increase of 1%-34%, net profit after deducting non-return net profit of 569 million yuan to 756 million yuan, an increase of 46%-94% year-on-year, and an increase of 3% to 37% month-on-month. Among them, the net profit center for Q2 was 680 million yuan, up 64% year on year, up 18% month on month, and net profit center without return to mother was 662 million yuan, up 70% year on year and 20% month on month. The company's profit growth rate was relatively rapid year-on-year, mainly due to the increase in revenue due to continuous order acceptance. Benefiting from the rapid expansion of TopCon's production in the past, the company was full of orders. The 24Q1 contract debt reached 18.2 billion yuan, +134% year over year, and inventory reached 22.1 billion yuan, +152% year over year.

As the company's on-hand orders continue to be recognized as revenue, the company's profits are expected to continue to grow.

Product breakthroughs in various fields such as perovskite, silicon carbide, and lithium batteries

In terms of semiconductors and perovskite, according to the company's official WeChat account, in April to April 2024, the company's subsidiary Chuangwei Microelectronics won the bid for semiconductor silicon carbide line wet process equipment and successfully completed the contract signing. The company won the bid for magnetron sputtering & reactive plasma deposition equipment used in perovskite as a leading panel company, successfully shipped large perovskite coating equipment, and won the bid for the leading perovskite thin-film battery pilot line project. In terms of lithium batteries, according to the company's 23rd annual report, the double-sided coiled copper foil sputtering coating equipment independently developed by the company was successfully launched, and the first roll of 4.5 μm composite copper foil successfully came out, achieving a high linear speed of 4830 m/min, far exceeding the general speed of 5 to 12 m/min in the market, opening up a new situation for the company in the composite fluid collector vacuum equipment market. The company has a broad layout in the fields of semiconductors, perovskite, etc., and the platform-based layout ensures the company's steady development.

Risk warning: Customer production expansion or overseas demand falls short of expectations, equipment acceptance slows down, and industry competition intensifies.