客户资源优势突出，焊带业务前景广阔。公司作为国内光伏焊带行业领先的公司，凭借产品性能与品牌优势不断开拓客户资源，目前公司已进入多个组件头部厂商如隆基绿能、晶科能源、通威股份、天合光能、阿特斯、晶澳科技等的供应链，客户合作关系稳定，市场竞争力不断提升。未来随光伏供给侧结构性改善与周期复苏，公司有望进一步扩大客户群、提升市场影响力与占有率。Event: On October 23, 2024, the company released its report for the third quarter of 2024. In the first three quarters of 2024, the company achieved operating income of about 2.477 billion yuan, an increase of 21.04% year on year; net profit to mother was about 0.046 billion yuan, down 60.54% year on year; net profit after deducting non-return to mother was about 0.039 billion yuan, down 65.76% year on year. Among them, 2024Q3 achieved operating income of about 0.794 billion yuan, an increase of 5.24% year on year; net profit to mother was about 0.01 billion yuan, down 76.58% year on year, up 690.21% month on month, and net profit without return to mother was about 0.011 billion yuan, turning a loss into a profit from month to month.
Sales volume increased month-on-month, and revenue improved year-on-year. As of September 2024, China's new installed capacity of photovoltaic power generation reached 160.88GW, an increase of 24.77% over the previous year. In September 2024, the installed capacity of photovoltaic power generation was increased by 20.89GW, up 32.38% year on year and 26.9% month on month. The future development trend is still rapid. Benefiting from continued growth in photovoltaic demand side emissions, the company's photovoltaic welding tape products are an important component of photovoltaic modules. The sales scale is expanding, and operating income also increased slightly over the same period last year. In the future, as the installed capacity of photovoltaics continues to increase, the company's shipments are expected to increase steadily.
Costs and raw material prices have risen, and profitability is under pressure in the short term. 2024Q3, the company's sales, management, finance, and R&D expenses rates were 0.33%, 0.97%, 1.23%, and 2.03%, respectively, totaling 4.56%, up 0.84pct from 2024Q2. This is mainly due to the expansion of the company's financing scale due to the increase in sales scale and the increase in financial expenses due to gains and losses on US dollar exchange. The main raw materials for photovoltaic welding belt products are copper and tin alloys. Due to a slight increase in the prices of raw materials such as copper and tin during the reporting period, and intense market competition, the company's profit margin declined in the short term, and profitability showed some pressure in the short term.
The customer resource advantage is outstanding, and the welding belt business has broad prospects. As a leading company in the domestic photovoltaic welding belt industry, the company continues to explore customer resources with product performance and brand advantages. Currently, the company has entered the supply chain of leading component manufacturers such as Longji Green Energy, Jingke Energy, Tongwei Co., Ltd., Tianhe Solar Energy, Artes, Jingao Technology, etc., with stable customer partnerships and market competitiveness. In the future, with PV supply-side structural improvements and cycle recovery, the company is expected to further expand its customer base and increase its market influence and share.
Investment advice: We expect the company's 2024-2026 revenue to be 3.334/4.048/4.849 billion yuan, net profit to mother of 0.07/0.12/0.171 billion yuan, EPS 0.67/1.15/1.64 yuan, and PE of 62/36/25 times, maintaining the “recommended” rating.
Risk warning: Risk of declining industry sentiment, increased risk of market competition, risk of fluctuating raw material prices.
