2024 年前三季度公司毛利率为6.06%，同比-6.54pct；其中Q3 毛利率为4.08%，同比-9.08pct，环比-2.32pct，行业竞争压力之下，焊带加工费出现一定程度下降。2024 年前三季度公司销售、管理、研发、财务费用率合计为4.04%，同比-0.97pct；其中Q3 销售、管理、研发、财务费用率合计为4.56%，同比-0.99pct，环比0.84pct，公司期间费用率保持较低水平。Incident: On October 23, 2024, the company released a performance report for the first three quarters of 2024. During the reporting period, the company achieved revenue of 2.477 billion yuan, +21.04% year-on-year; net profit to mother 0.046 billion yuan; deducted non-net profit of 0.039 billion yuan. Among them, Q3 achieved revenue of 0.794 billion yuan, +5.24% year over year; net profit attributable to mother of 0.01 billion yuan; and deducted non-net profit of 0.011 billion yuan.
The introduction of a new welding belt technology is expected to benefit from the increased penetration rate of BC technology. Cost reduction and efficiency run through the core development line of the photovoltaic industry. SMM and 0BB welding belt technology are being promoted at the battery and module side. Through continuous R&D and innovation, the company launched a new multi-layer composite welding belt suitable for BC battery modules. There have been significant improvements in materials, structure, and technology, providing a new welding belt solution with significant overall cost optimization for the large-scale development of BC high-efficiency modules, which is expected to fully benefit from the increase in the penetration rate of BC technology.
Competition in the industry intensified processing costs for pressed welding belts, and the cost rate remained low during the company period.
The company's gross margin for the first three quarters of 2024 was 6.06%, -6.54pct year on year; of these, Q3 gross margin was 4.08%, -9.08pct year on year, and -2.32pct month-on-month. Under competitive pressure from the industry, welding belt processing costs declined to a certain extent. The company's total sales, management, R&D, and finance expenses for the first three quarters of 2024 was 4.04%, -0.97pct year on year; of these, the total cost ratio for Q3 sales, management, R&D, and finance was 4.56%, -0.99pct, and 0.84pct month-on-month. The company's cost ratio remained low during the period.
Leading customers have significant advantages, and continuous R&D and innovation bring long-term growth. After years of market accumulation, the company has established stable cooperative relationships with leading component manufacturers such as Longji Green Energy, Jingke Energy, Tongwei Co., Ltd., Tianhe Solar Energy, Artes, and Jingao Technology, etc., leading the photovoltaic welding belt market. Under the trend of technology homogenization in the industry, through continuous R&D and innovation, the company has obtained advanced patented technologies in the industry such as “integrated rolling annealing technology”, “copper strip heat treatment technology”, “corrosion-resistant low-temperature solder formulation technology”, “high-speed tinning technology”, “segmented rolling and tinning technology”, etc., and obtained invention patents for “a composite welding belt”, “a confluent belt for photovoltaic modules”, and “a coating thickness measurement device and measurement method for round wire welding tape”, which lays technical advantages for the company's long-term development.
Investment advice: The company is a leading welding belt company. The launch of a new multi-layer composite welding belt is expected to benefit from the increased penetration rate of BC technology. We expect the company's net profit to be 0.086/0.158/0.255 billion in 2024-2026, covered for the first time and given a “buy” rating.
Risk warning: PV installation demand falls short of expectations; industry competition increases risk; technology development falls short of expectations.