Incident: The company released its 2023 performance forecast. For the whole of 2023, the company achieved net profit of 1.90-215 million yuan, an increase of 64.21%-85.81% year-on-year, and achieved net profit without deduction of 173-198 million yuan, an increase of 77.52%-103.18% over the previous year. The fourth quarter of 2023 achieved net profit of 0.45 to 70 million yuan, a year-on-year increase of 110.60%-227.60%, and realized net profit without deduction of 0.41 to 66 million yuan, an increase of 143.50%-291.97% year-on-year.
In 2023, the global PV installed capacity reached a new high, and demand for auxiliary materials expanded: in 2023, the global solar photovoltaic power plant installation volume continued to develop strongly. The China Photovoltaic Industry Association predicts that in 2023, the new installed capacity of global PV will be 345-390 GW, which is a significant increase over 2022, and the demand for solar photovoltaic auxiliary materials market will expand accordingly. In 2023, the company continued to expand sales channels, consolidate product sales prices, and improve product performance and layout. Its competitive advantage in brand, product, R&D, etc. continued to increase, gaining market and customer recognition, and increasing its business scale. At the same time, the company actively adopted various measures such as increasing the self-supply ratio of major materials and improving production efficiency to effectively control raw material costs, and the company's profitability was further enhanced.
Production capacity is expanding steadily, and scale advantages are gradually showing: in 2023, the company will produce about 300,000 sets of photovoltaic junction boxes per day. With the gradual implementation of production capacity in Vietnam, the company expects the future production capacity of PV junction boxes to reach 150 million sets. The company has mastered a number of core technologies for junction boxes through independent research. Up to now, the company has more than 50 authorized and effective patents. Overall, the company is one of the main manufacturers of photovoltaic junction boxes in China. It has relatively large production scale, technology and quality advantages. With its good brand and reputation formed over many years of operation, the company is in a certain market advantage.
The main customers are leading enterprises in the industry, with significant customer resource advantages: the company's main customers are Longji Green Energy, Tianhe Solar, Jingao Technology, and Wuxi Suntech. The company's top five customers are all leading companies in the industry that have established long-term good cooperative relationships, and the total shipment volume accounts for about 75%-85% of the company's shipments.
Excellent R&D capabilities and stable core technical team: Since its establishment, the company has always taken customer satisfaction as the highest pursuit. As one of the company's core technicians, Mr. Yan Rongfei, the chairman of the company, personally led the company's R&D team to carry out independent research and development. The company has a professional technical R&D team and software and hardware resources, and attaches importance to investment in technology research and development. The core technicians have rich practical experience and excellent R&D capabilities, the technical team composition is reasonable and stable, and the salary level is competitive. The company has laboratories that meet TUV requirements to provide standardized tests for all stages of the company's products from R&D to mass production to ensure that the performance requirements of the products are effectively guaranteed, and to provide customers with high performance and high quality products.
Investment advice: We predict that in 2023-2025, the company will achieve revenue of 1,786 billion yuan, 2,625 billion yuan, and 3.57 billion yuan respectively, with year-on-year growth rates of 43%, 47%, and 36%, respectively, achieving net profit attributable to mother of 212 million yuan, 310 million yuan, and 425 million yuan respectively. Corresponding PE is 25.5 times, 17.5 times, and 12.7 times, respectively. Considering the company's large market space, production capacity expansion is steadily increasing. The market share will increase steadily. The first coverage gave purchase-A suggestions
Risk warning: risk of fluctuations in raw material supply and price, risk of fluctuations in downstream industry sentiment, risk of a relatively uniform product structure