Event: on August 30, 2023, the company released its semi-annual report 2023. 2023H1 achieved an operating income of 862 million yuan, an increase of 42.36% over the same period last year, a net profit of 108 million yuan, an increase of 278.55%, and a non-return net profit of 102 million yuan, an increase of 278.34% over the same period last year. The high increase in the company's profits is mainly due to: (1) during the reporting period, the company's operating income increased, and the gross profit margin of the Australian market returned to the normal level compared with the same period, resulting in a substantial increase in net profit; (2) during the reporting period, affected by exchange rate fluctuations, exchange earnings reached 17.4824 million yuan, an increase of 27.185 million yuan compared with the same period last year.

The revenue of distributed bracket is high, and the European market is outstanding. The company is a leading distributed support enterprise, deeply ploughing overseas markets for many years, and has achieved large-scale sales in Australia, Europe, Southeast Asia and other countries. Overseas market revenue increased significantly in the first half of the year, and exchange earnings further enhanced the company's profitability. 2023H1's revenue from distributed brackets reached 551 million yuan, an increase of more than 50 percent over the same period last year. Among them, the European market showed explosive growth, with revenue of 248 million yuan, an increase of more than 300% over the same period last year. In the long run, the company has the largest market share in Australia for 13 years in a row, and the traditional Australian market is basically stable; European and emerging markets maintain demand for energy restructuring and reducing carbon emissions, excluding exchange rate fluctuations, it is expected to continue to contribute high increments. The company issued convertible bonds in April 2023, raising no more than 550 million yuan for the construction of "distributed Photovoltaic support Intelligent Factory Project", "Energy Research and Development Center Project" and "Supplementary liquidity Project". Further expand the production capacity of distributed photovoltaic support, fully match the market demand, the company's photovoltaic support business volume profit period.

Optical storage customer channel sharing, energy storage promotion in progress. As of 2023H1, the company has completed the research and design of household storage products and product certification, the target market is mainly in Australia and Europe, and plans to officially start sales in the second half of 2023. In terms of portable energy storage, the target markets of the company's products are mainly in Australia and Japan, and will be appropriately involved in the American and European markets. By the end of June, the company's portable energy storage products have entered the initial promotion in Australia and formed small batch sales. Due to the natural complementarity of photovoltaic storage, the advantages of the company's years of layout of distributed photovoltaic brackets and the wide spread of the market are reflected, and the channels of photovoltaic brackets and energy storage products are interconnected to help promote energy storage products. in the context of the rising proportion of photovoltaic storage, it is expected to achieve shipment and performance volume.

Investment suggestion: it is estimated that the company's operating income from 2023 to 2025 will be 19.31 billion yuan 25.41 yuan / 3.308 billion yuan respectively, and the net profit of returning home will be 2.05 million yuan 2.71 billion yuan respectively, an increase of 87%, 32.4% and 25.6% over the same period last year. The corresponding EPS is 0.75,0.99,1.24 respectively, and the corresponding PE multiple of the current stock price is 18.1,13.7,10.9 respectively.

Risk tips: tracking support development is not as expected; distributed support market expansion is not as expected; energy storage shipments are not as expected; international exchange risk and so on.