Event: the company released its Triple report for 2023. The company's 2023Q1-Q3 realized operating income of 2.285 billion yuan, an increase of 82.67% over the same period last year, and a net profit of 182 million yuan, an increase of 67.99% over the same period last year. Of this total, 2023Q3's single-quarter operating income was 730 million yuan, an increase of 29.58 percent over the same period last year, and its net profit was 66 million yuan, an increase of 109.91 percent over the same period last year.

The company makes great efforts to develop photovoltaic business. 2023Q3 continued high revenue growth, mainly due to increased sales of its subsidiary Fuller New Energy.

The company's profitability has improved significantly. 1) Gross profit margin: 2023Q3's gross margin increased by 8.21pct to 20.15% compared with the same period last year. 2) rate side: 2023Q3 sales / management / R & D / financial rate is 0.76%, 5.40%, 3.57%, 0.14%, year-on-year change

-0.27pct/2.76pct/-0.39pct/0.65pct. Among them, the change of management expense rate is mainly caused by the increase of share payment and year-end bonus, and the change of financial expense rate is mainly caused by the interest of convertible bonds issued in this period. 3) net interest rate: the company's 2023Q3 net interest rate changed by 3.76pct to 9.54% compared with the same period last year.

4) Cash flow: the net operating cash flow of 2023Q3 Company was 112 million yuan, + 6495% compared with the same period last year. The net operating cash flow improved significantly under the low base, of which the cash received from the sale of goods was 222 million yuan, + 5.49% compared with the same period last year.

Create a "one body and two wings" development model to steadily expand the production capacity of photovoltaic modules. At present, the company focuses on the photovoltaic field, and has made steady progress in photovoltaic products and production capacity. 1) products: the company's previous main products are 166 half-chip, 450W components, follow-up research and production of 182 half-chip, 540W components, has been mass production, while the new product 210 half-chip, all-black components, double-sided power generation components have passed the relevant testing and certification. 2) production capacity: at present, Fuller New Energy can achieve the annual production capacity of 1.5GW/, with a daily output of about 6800 tablets. At present, the company has sufficient orders on hand and is actively increasing production capacity by issuing convertible bonds. It is expected to be completed and put into production by the end of this year, and the annual production capacity of 5GW/ will be achieved in the near future.

Profit forecast and investment advice. Taking into account the company's performance in the first three quarters of 2023, we expect the company to achieve a net profit of 2.11 million yuan in 2023-2025, an increase of 77.6%, 43.4% and 25.3% over the same period last year, and maintain the "overweight" investment rating.

Risk tips: raw material prices fluctuate sharply, photovoltaic energy storage business expansion is not as expected, and the demand of the white power industry is not as expected.