The Diamond Wire busbar project is progressing smoothly, and photovoltaic wire mesh products are actively developed.
According to InfoLink data, each GW silicon wafer corresponds to 550000 km of diamond line demand in 2023, and the annual demand is expected to reach 294.525 million km. The company's 2022 diamond wire busbar business income is 89.6153 million yuan, year-on-year + 43.94%; gross profit margin 45.54%, year-on-year + 3.76pct. Qiangxin Technology, a subsidiary, is mainly engaged in the research and development, production and sales of diamond wire busbar. At the beginning of 2022, the company invested in the annual production of 60 million km diamond wire busbar and 100 pieces of solar cell photovoltaic screen (30 m long * 1 m wide), and continued to develop and establish independent production capacity of upstream raw materials and upgrade the drawing process of diamond wire busbar. The company has successively launched the fine wire bus products of 36um and 34um, realized the thin wire drawing of 11um in the aspect of photovoltaic wire mesh, and actively developed the network weaving technology. As of April this year, the production capacity of the company's diamond wire busbar is 240km / month and aims to reach 1000 km / month by the end of 2023.
The company built its own brass wire production line in Nantong, which does not rely on imports and uses domestic Morton process with original formula. Self-made key raw materials can further ensure product quality and company profitability.
Master the core technology of precision metal parts, rich experience and sufficient customer resources
The wearable market is growing rapidly. According to IDC data, global wearable device shipments are 490 million units in 2022, and shipments are expected to increase by about 6.30% year-on-year in 2023. CAGR is about 5.40% in 2023-2027. The precision wire springs, structural parts and conductive structural parts produced by the company are used in Apple Inc and Beats headphones. The company is actively developing acoustic screen and constantly expanding new products in the consumer electronics industry. The company's 3C products are excellent downstream and end customers, and have entered the supply chain system of well-known enterprises such as Foxconn, Lixun Precision, Zhengwei and other well-known enterprises. The main end customer is Apple Inc, which has formed a long-term good cooperative relationship. The company was certified as a supplier by Apple Inc in 2017, and the variety of products provided to it continues to increase, reaching 334 in 2022, accounting for 50.38% of the revenue.
Virtual reality technology combined with wearable equipment has a broad market prospect, the AR/VR market has great potential, the precision parts industry ushered in new development opportunities, some of the precision metal structures produced by the company can be applied to AR/MR products.
The business of precision metal parts of automobile is growing steadily, and the related business of new energy vehicles is expanding rapidly.
According to Global Market Insights, the global car skylight market will reach $40 billion in 2025, with a CAGR of about 10%. In 2022, the sales revenue of the company's automobile skylight parts was 147 million yuan, accounting for 16.05% of the total revenue. The main customers included leading automotive sunroof enterprises such as Weibast and Innafa. The double carbon goal will speed up the transformation of the automobile industry, and China's new energy towel field has developed rapidly. According to the China Association of Automobile Manufacturers, the production and sales of new energy vehicles in 2022 were 7.058 million and 6.888 million respectively, which was + 96.9% and 93.4% respectively compared with the same period last year. It has been the first in the world for eight consecutive years. The company has made great efforts to develop the related business of new energy vehicles and independently developed automobile rear wing sports structures. the end customer is SAIC 2022 new energy vehicle parts revenue of 19.1123 million yuan, accounting for 2.09%. Year-on-year + 247.64 company new investment projects include new energy vehicles and power battery structures, actively develop head new energy vehicle customers, develop related business.
Investment advice and profit forecast: the company's consumer electronics industry product categories continue to increase, customer channels are good, the production capacity of diamond wire bus is growing rapidly, actively research and development of acoustic wire mesh and photovoltaic wire mesh, and expand the new energy vehicle track business, develop head customers; the company is expected to return to its mother in 20232025 net profit of 1.652.74 / 352 million yuan, corresponding to 20232025 PE24/15/11 times. Cover for the first time, giving a "buy" rating.
Risk hints: the global economy is in the doldrums, the demand for consumer electronic products is declining, the competition pattern within the industry is deteriorating, raw material prices fluctuate greatly, the production capacity of companies is not as expected, and the development of the industry is hindered by trade barriers in Europe and the United States.