occurrences

On August 27, 2024, the company released its 2024 semi-annual report. According to the company announcement, 24H1 achieved revenue of 3.376 billion yuan, +75.73% year over year, net profit margin of 0.231 billion yuan, +135.86% year over year, and realized net interest rate of 0.217 billion yuan without return to mother, +192.86% year over year.

On a quarterly basis, the company achieved revenue of 1.562 billion yuan in 24Q2, +41.26%, and realized net profit of 0.077 billion yuan, +30.40% year-on-year, and -49.78% month-on-month, and realized net profit without return to mother 0.075 billion yuan, +24.96% year-on-year and -47.76% month-on-month.

Tracking bracket sales increased year-on-year, with sufficient orders in hand

According to the company's semi-annual report 24H1, the company delivered 5.89GW of tracking brackets, +363.58% year-on-year, and 1.62 GW of fixed brackets, or -41.74% year-on-year. As of June 30, 2024, the company had orders of 6.669 billion yuan, of which the tracking stand was 5.549 billion yuan, +183%, including: Middle East and Africa 2.307 billion yuan, accounting for 43.81%, East Asia and India, 2.225 billion yuan, accounting for 42.25%, Europe 0.286 billion yuan, accounting for 5.43%, Latin America 0.17 billion yuan, accounting for 3.23%, other markets 0.278 billion yuan, accounting for 5.28%. According to the company's official account, the number of orders signed by 24H1 in India and the Middle East reached 6GW+/3.4GW+, and sufficient order volume in overseas markets is expected to provide strong support for the company's performance.

Market share is rising steadily, and the globalization process continues to advance

Relying on its early overseas layout in blue ocean markets such as India, the Middle East, Central Asia, and Latin America, the company's market share continues to expand. According to Wood Mackens statistics, the company's market share continues to expand. According to Wood Mackens statistics, CITIC's 2023 tracking support system shipment volume reached 9% globally, up 4 Pcts compared with 2022, and rose to fifth place in the world. It is the only Chinese company ranked in the top five. In terms of overseas production capacity, 24H1 signed a land lease agreement with the Saudi Industrial Cities and Technological Zone Authority (MODON) to plan the construction of localized production capacity in Saudi Arabia. After completion, the Saudi factory will become the second overseas production base after the Indian factory, with a design capacity of 3 GW. The supporting company's global supply chain system can have a local delivery capacity of about 10 GW to meet the project delivery needs of the local area and surrounding regions.

Investment advice

We expect the company's 24-26 revenue to be 9.024/12.401/15.555 billion yuan, net profit to mother 0.681/0.939/1.165 billion yuan, respectively, and the corresponding PE is 18x/13x/10x, respectively. The company is a leading photovoltaic stent company. Continued expansion in overseas markets is expected to increase the company's profits. The BIPV business may bring new vitality to the company in the future and maintain a “recommended” rating.

Risk warning

Downstream demand falls short of expectations, market competition intensifies, overseas market development falls short of expectations, etc.