Key points of investment
Incident: The company released its 2022 semi-annual report. The company achieved revenue of 916 million yuan, an increase of 48.46% over the previous year, net profit of 94 million yuan, an increase of 70.4% over the previous year; deducted non-net profit of 92 million yuan, an increase of 136.55% over the previous year. In the second quarter alone, the company achieved revenue of 533 million yuan, an increase of 54.82% over the previous year, and Guimu's net profit of 61 million yuan, an increase of 99.95% over the previous year, after deducting non-net profit of 60 million yuan, an increase of 158.5% over the previous year and an increase of 88% over the previous month.
The advantages of the BO backplane are obvious. Sales grew by 228%, and net profit increased further. In the first half of the year, the company achieved backboard revenue of 652 million yuan, of which fluorine-free backboard revenue was 404 million yuan, accounting for 62%. The company produced a total of 57.1612 million square meters of backboards and sold 588.47,700 square meters, an increase of 33% over the previous year. Among them, the cumulative sales volume of BO-type fluorine-free backboards was 41,4019 million square meters, an increase of 227.57% over the previous year. The cumulative sales volume of fluorine-free backboards accounted for 70.35% of total backboard sales. According to our estimates, due to the rapid increase in the company's BO backboard sales, the profit per backboard unit increased further, to about 1.5 yuan/square meter.
Large customers placed orders in batches, and the share of BO increased to 90%, and production capacity expanded rapidly to meet market demand. The company actively promoted BO-type backplane products and received batch orders from strategic customers such as Jingao Technology, Tongwei Co., Ltd., Hanwha, China Energy Saving, and Dongfang Risheng. All tests, certifications, small, medium, and large-scale trial production of BO backboards have been completed for important customers Longji Co., Ltd., and have now been delivered in batches. At present, the proportion of the company's BO backboard shipments is close to 90%. Striving to account for more than 80% of BO backboard sales throughout the year will further increase the company's net profit level. The company currently has a backboard production capacity of 114 million square meters, which is already full. It is expected that it will add 100 million square meters of production capacity in the future. Production will be successfully digested, production will double. The additional production capacity has already been purchased for land and plants. Production is expanding rapidly. It is expected that production will be put into operation one after another this year.
The adhesive film business is developing rapidly, and there are plenty of membrane technology epitaxial products. In the first half of the year, the company produced a total of 9.867 million square meters of adhesive film and sold 9.217 million square meters, an increase of 171% over the previous year. Six adhesive film production lines have been built, forming a theoretical production capacity of 60 million square meters of POE/EVA film per year. The company's IPO raised 120 million square meters of POE film production capacity and will gradually reach production this year, which will be another growth point for the company's performance. In addition, the company also has a number of promising new technologies, including heterogeneous mesh barriers, which are expected to blossom more in the future.
The production capacity of aluminum-plastic film is expanding rapidly to meet the increasing demand of the industry in the future. In the first half of the year, the company produced a total of 3.678 million square meters of lithium battery aluminum-plastic film and sold a total of 3.477 million square meters, an increase of 46% over the previous year. The company's power/energy storage battery aluminum-plastic film sales accounted for 73.77%. The company's aluminum-plastic film is in the testing stage for leading customers A and B and is progressing normally. The company raised capital and investment to greatly expand the company's aluminum-plastic film production capacity and seize a high position in the market in the context of domestic substitution.
Profit forecasts and investment recommendations. The company's backboard performance exceeded expectations, and POE film and aluminum-plastic film will form a new impetus for growth in the future. We expect the company's net profit to be $222/555/707 million in 2022/2023/2024, maintaining the “buy” rating.
Risk warning: single-sided module market shrinks; lithium battery technology iteration; fixed increase in new production capacity falls short of expected risk.
