Incident: According to the company's bid announcement, the company formed a consortium with Ziyang Construction Engineering, China Yizhi, and Shanghai Electronic Engineering Design and Research Institute to win bids for various projects such as Ziyang New Energy Industrial Park and Renewable Energy Industrial Park in the Cheng-Chongqing Shuangcheng Economic Zone. The total bid amount was 4.03 billion yuan, and the bid period was 9 months. Among them, the company was mainly responsible for the installation of integrated mechanical and electrical equipment such as exhaust gas/wastewater/pure water treatment and specialty gas chemicals. The bid amount was 2,42-2.62 billion yuan, accounting for 60-65%.
A leading integrated environmental protection equipment company with plenty of orders on hand, helping to increase performance. As a leading manufacturer of environmental protection equipment, the company has transformed from a single environmental protection equipment supplier to an integrated pollution control equipment supplier, driven by the current wave of photovoltaic production expansion and high battery environmental protection standards. According to the company's bid announcement, the joint bid for the industrial park construction project highlights the company's leading edge in large-scale industrial comprehensive supporting projects, and is expected to enhance customer recognition for integrated equipment as a benchmark project. Looking ahead to 24 years, as N-type battery production continues to expand and the penetration rate of the company's integrated pollution control equipment continues to increase, the company has plenty of orders in hand. According to the company's response on Shenzhen Stock Exchange, as of October '23, the company has announced that the total amount of new winning projects has exceeded 5 billion yuan. Considering this joint bid project, the company's ongoing orders have exceeded 7 billion yuan, which strongly guarantees the scale of the equipment business in 24 years.
The price gap for high-efficiency batteries may increase, and the company TopCon's profit advantage is expected to be highlighted. According to the company's interactive response on the Shenzhen Stock Exchange, the first phase of the company's 18GW TopCon was released on December 28, '23. According to Solarzoom, the current price difference for high-efficiency N-type batteries remains at 4 points/W. If demand for terminal restocking picks up after the Spring Festival, the tight supply situation for high-efficiency batteries is expected to increase, and the premium gap for less efficient batteries may widen. The company leads the industry in battery efficiency and non-silicon costs, and profit advantages are expected to become prominent after demand recovers.
Profit forecasting and investment advice. The estimated net profit for 23-25 years is 2.4/7.9/1.09 billion yuan, giving a PE valuation 10 times over 24, corresponding to a reasonable value of 55.16 yuan/share, maintaining a “buy” rating.
Risk warning. Prices in the industrial chain fluctuate greatly; the company's technological innovation speed falls short of expectations; market competition intensifies; the risk of macroeconomic fluctuations, etc.