The company released a three-quarter report

The 24Q3 company's revenue of 0.3 billion increased by 15%, net profit due to mother of 0.012 billion decreased by 36%, and net profit after deducting 0.01 billion decreased by 41%; 24Q1-3's revenue of 0.88 billion increased by 15%, net profit to mother of 0.06 billion increased by 23%, and net profit not attributable to mother of 0.06 billion increased by 21%;

24Q1-3's gross profit margin of 24% increased by 1.3 pct; net profit margin of 5.6% decreased by 0.7 pct.

Joint investment with professional investment institutions to establish industrial funds

In order to explore high-quality projects upstream and downstream of the industrial chain, improve the profitability and sustainable development capacity of the company's main business, and broaden the industrial layout and strategic vision; as a limited partner, the company plans to use its own capital and general partner and executive partner Shanghai Jiaxun Private Equity Fund Management Partnership (Limited Partnership) to jointly invest in the establishment of Tongxiang Aishuo Venture Capital Partnership (limited partnership); the target size of the industrial fund is RMB 120.6 million. Among them, the company pledged an investment of 60 million yuan as a limited partner; Shanghai Jiaxun contributed 0.6 million yuan as general partner and executive partner.

By participating in the establishment of an industrial fund, the company invests in projects in line with the company's strategic development direction, which is conducive to expanding the company's business opportunities, further improving the business layout, enhancing the company's overall competitiveness, and creating more value for the company and shareholders.

The holding subsidiary signs a strategic cooperation framework agreement

The company's holding subsidiary, Nantong Aina New Energy Technology Co., Ltd. recently signed a “Strategic Cooperation Framework Agreement for Polyurethane Composite Frame Products” with Beijing Tongchuang (Huidong) New Material Technology Co., Ltd.:

Beijing Tongchuang will conduct business dealings with Aina New Energy on the “glass fiber-reinforced polyurethane composite frame” products independently developed by Aina New Energy, and expand the product strength and brand influence of both parties through in-depth industry research, technology iteration, and process innovation.

According to the agreement, from 2024Q4 to the end of 2026, Beijing Tongchuang plans to purchase a “glass fiber-reinforced polyurethane composite frame” product with a total scale of about 1.08 GW from Aina New Energy to match the production capacity of the downstream photovoltaic industry;

The two sides plan to carry out in-depth cooperation through their respective market-competitive products and technology platforms to further promote two-way market development through effective measures such as industry research, technical exchanges, and process innovation. The company's holding subsidiary, Aina New Energy, was established in November 2023, and its main business is R&D, production and sales of composite photovoltaic frame products. As of October 9, 2024, Aina New Energy's polyurethane composite frame products (materials and structures) have successfully passed various tests and evaluations and obtained German VDE raw material certification and T? V (South Germany) certification

The signing of this strategic cooperation framework agreement will help Aina New Energy develop sales markets in the field of new photovoltaic materials and accelerate the innovation and application process of Aina New Energy products. It helps promote the business process of Aina New Energy and other PV module customers that have completed sample delivery, and enhance the influence and core competitiveness of the Aina New Energy brand.

Adjust profit forecasts to maintain “gain” rating

Based on 24Q1-3 performance, uncertainty in the external macro environment or dragging down the company's traditional business, we adjusted our profit forecast. We expect net profit to be 1.00/1.26 and 0.167 billion yuan respectively for 24-26 (the original net profit to mother was 0.126 billion yuan and 0.142 billion yuan for 24-25); EPS was 0.25/0.31 and 0.42 billion yuan, respectively (the original EPS value for 24-25 was 0.32 yuan and 0.35 yuan), respectively ); PE is 51X/40X and 30X respectively.

Risk warning: insufficient production demand; loss of core executives; risk of falling orders.