A leading global component company, performance continues to improve. The company's predecessor, Ninghai Risheng, was founded in 2002, began to participate in the solar cell module industry in 2006, and was successfully listed on the Shenzhen VEM in 2010. The company's main business is R&D, production and sales of solar cell modules. It also covers the fields of photovoltaic power plant EPC, photovoltaic power plant operation and energy storage. In recent years, the company's performance has maintained a good growth trend. In the first three quarters of 23 years, the company achieved revenue of 28.017 billion yuan, +33.27% year-on-year; realized net profit of 1,279 billion yuan, +71.18%; and achieved net profit of 1,571 billion yuan, +104.10% year-on-year.
Photovoltaics: Heterojunction leading enterprises, further deepening the degree of integration. The company is speeding up the pace of cost reduction and efficiency of heterojunction. In terms of non-silicon costs, the company has now achieved the amount of pure silver in batteries <10 mg/W through its own patented 0BB (no main grid) technology and low silver content slurry. It is expected that the amount of pure silver used will drop by 1 mg/W every quarter in the future, and the 24H1 usage will be reduced to 7 mg/W; in terms of silicon costs, the company has been able to prepare 95 μm heterojunction cells based on 110 μm silicon wafers. It continues to reduce silicon costs through thinning, and is not less than 10GW with Hi-Tech Co., Ltd. Strategic partnerships, in Accelerate the process of thinning while further securing the supply of raw materials. In terms of efficiency, as the first company in the industry to mass-produce G12 half-chip, 110 μm heterojunction cells, the company achieved an average efficiency of 25.5% for mass production of batteries, and a module conversion efficiency of over 23.89%. At the same time, the company is accelerating the expansion of efficient integrated production capacity. The company's nominal heterojunction production capacity is expected to reach 15 GW by the end of 23; the current production capacity of upstream polysilicon is 12,000 tons, the company extends its integrated layout upstream, and the 10GW crystallization project has been reviewed by the board of directors.
Energy storage: Everything is ready, and the wind of energy storage is driving the wind to the top. The company entered the energy storage industry through the acquisition of Shuangyi in 2018. The business structure is mainly large storage, and it has experience in delivering many 100 megawatt large storage projects around the world. The company has now launched a 100kW/215kWh domestic version of the industrial and commercial all-in-one energy storage cabinet, using self-developed PCS, BMS, and EMS. Furthermore, the company is actively exploring innovative business models combining optical storage. Its independently developed liquid-cooled energy storage battery system is the first system in China to pass UL9540A certification in China and the US at the same time. In terms of orders, the company has won a number of 100 megawatt-hour industrial and commercial energy storage framework contracts. The energy storage business is expected to become a new growth point for the company's performance.
Investment suggestions: We expect the company's revenue for 2023-2025 to be 391.20/483.82/58.335 billion yuan, corresponding growth rates of 33.1%/23.7%/20.6% respectively, net profit of 17.91/21.42/2,690 billion yuan, corresponding growth rates of 89.6%/19.6%/25.6% respectively. Based on the closing price on November 3, the corresponding PE is 11X/9X/7X. The company is a leading company in photovoltaic modules. The acceleration of heterogeneous industrialization is expected to increase the company's profits, and the energy storage system business is about to expand, maintaining the “recommended” rating.
Risk warning: downstream demand falls short of expectations, capacity expansion falls short of expectations, etc.