Event: in order to promote the development of the N-type battery project of Haiyuan compound materials' companies, Haiyuan compound materials, core Acer WeChat and Guangxin materials booth at the SNEC venue of Shanghai New International Expo Center signed the "High efficiency and low cost N-type battery copper plating metallization technology strategic cooperation agreement", and the three parties agreed to form strategic partners.
Tripartite cooperation to speed up the landing of electroplating technology, photovoltaic cell technology is expected to enter a new era: according to the agreement, Haiyuan compound material, Core Acer Micro and Guangxin Materials will study the development of copper plating metallization technology for high-efficiency and low-cost heterojunction batteries based on N-type batteries, and carry out all-round technical cooperation to form a complete set of N-type battery copper plating equipment line and metallization scheme with industrialization prospects. And work together to promote the large-scale production and application of the technical scheme. Copper plating metallization technology for N-type battery is one of the important technical routes for the development of photovoltaic cells. Copper plating technology can replace the silver paste technology with relatively high cost in the HJT cell scheme, which can greatly reduce the non-silicon cost and improve the conversion rate. If the copper plating technology is recognized by the market, it is expected to rewrite the current industry pattern of photovoltaic cell silver paste printing technology, and promote photovoltaic cells to a silver-free era.
AI drives data center growth, which in turn is expected to drive PCB photoresist demand: NVIDIA Corp recently disclosed the latest quarterly report, its data center revenue reached a new high of $4.28 billion, and gave guidance to achieve operating revenue of $11 billion in the second quarter of fiscal 2024, higher than previously expected. The main reason for the higher-than-expected growth is that the demand for generative AI and large language models for Ampere and Hopper architectures GPU has led to overweight investment by large Internet vendors and cloud service companies. The growth of the demand for computing power has driven the demand of the upstream PCB industry, which is expected to boost the consumption of PCB photoresist. As the leading company in the PCB photoresist industry, the company is expected to benefit from the recovery of downstream demand. The company's new base in Longnan is in the process of landing, and it is expected that the production capacity of PCB photoresist released after production will provide a guarantee for the company to meet market demand.
Investment suggestion: the company's photovoltaic products are expected to gradually increase, and PCB photoresist products are also expected to benefit from the demand driven by AI. We estimate that the company's 2023-2025 operating income is 7.53,10.56 and 1.395 billion yuan respectively, the return net profit is 0.60,1.78 and 304 million yuan respectively, and the EPS is 0.31,0.92,1.57 yuan respectively. Maintain a "buy" rating.
Risk hint: market competition intensifies, macro environment is not as expected, and product application is not as expected.