充分发挥技术闭环研发优势，新产品迭代助力公司穿越周期：公司上半年四大业务围绕切片环节一体化稳步推进，光伏切割设备方面，上半年国内前期订单陆续验收、海外订单持续落地，实现收入13.49 亿元，同比+66.96%，截至6 月底公司光伏切割设备类产品在手订单12.93 亿元；光伏切割耗材业务方面，上半年实现金刚线出货约2900 万千米，其中钨丝金刚线出货约600 万千米，钨丝占比快速提升；硅片切割加工服务方面，公司上半年有效出货约19GW，在产业链价格下行周期中，硅片切割加工服务业务模式不断得到行业认可，市场渗透率稳步提升；创新业务方面，上半年公司海外订单持续突破，创新业务设备类产品在手订单1.14亿元，较2023 年底提升14%，创新业务品类不断丰富。Brief performance review
On August 29, 2024, the company released its 2024 semi-annual report. 24H1 achieved operating income of 2.646 billion yuan, +4.96% year on year; realized net profit of 0.273 billion yuan, or -61.80% year on year; of these, Q2 achieved revenue of 1.226 billion yuan, -2.82% year on year; realized net profit to mother 0.0061 million yuan, or -83.91% year on year, which is in line with expectations.
Management analysis
Leveraging the advantages of closed-loop technology research and development, new product iteration helped the company move through the cycle: the company's four major businesses progressed steadily around the integration of slicing processes in the first half of the year. In terms of photovoltaic cutting equipment, early domestic orders were accepted one after another, and overseas orders continued to land in the first half of the year, achieving revenue of 1.349 billion yuan, +66.96%. By the end of June, the company's photovoltaic cutting equipment products had orders of 1.293 billion yuan; in terms of photovoltaic cutting consumables business, diamond wire was shipped about 29 million kilometers in the first half of the year. Among them, diamond wire was shipped about 29 million kilometers in the first half of the year. Shipments were about 6 million kilometers, and the proportion of tungsten wire increased rapidly; in terms of silicon wafer cutting and processing services, the company effectively shipped about 19 GW in the first half of the year. In the industrial chain price decline cycle, the silicon wafer cutting processing service business model continued to be recognized by the industry, and the market penetration rate increased steadily; in terms of innovative business, the company continued to break through overseas orders in the first half of the year, and orders for innovative business equipment products were 0.114 billion yuan, an increase of 14% over the end of 2023.
The four major businesses have shown growth resilience, and product competitiveness has been steadily improving: in terms of photovoltaic cutting equipment, the company is deeply focusing on R&D and innovation, and is recognized by global customers, and is expected to continue to stabilize its leading position; in terms of cutting consumables, the company led the industry to launch 28/30um carbon wire and 21um linear tungsten wire. It is expected that the share of tungsten wire shipments will continue to increase in the second half of the year, accelerating the refinement and iteration of the industry; in terms of slicing foundry, the closed loop advantage of technology promoted the cutting company's deepening process and achieving cost reduction and efficiency in the first half of the year. The slicing production capacity exceeds 60 GW, and there is huge room for subsequent business expansion; in terms of innovative business, the company broadened product categories in the four major industries of semiconductors, silicon carbide, sapphire, and magnetic materials, achieved overseas sales, silicon carbide slicers formed batch orders, new sapphire chamfering machines formed orders, and product competitiveness continued to improve.
Profit Forecasts, Valuations, and Ratings
According to the company's current orders and latest business developments, the company's profit for 2024-2026 was lowered to 4.22 (-56%) /4.76 (-61%) /7.31 (-54%) billion yuan, corresponding EPS was 0.77/0.87/1.34 yuan, and the current stock price corresponding to PE was 13.9/12.3/8.0 times, respectively, maintaining the “buy” rating.
Risk warning
Technological progress falls short of expectations; there is a risk that silicon wafer prices will fall too fast.
