The company released its 2023 annual report: it achieved revenue of 4.166 billion yuan for the full year of 2023, +1.2% year on year, net profit to mother of 104 million yuan, year-on-year, -39.5% year-on-year, gross profit margin of 10.7%, and -2.3 pct year on year. The company released its 2024 quarterly report: 24Q1 achieved revenue of 885 million yuan, -14.9% YoY, +7.3% month-on-month, net profit to mother of 0.29 million, -14.0% YoY, +55.5% month-on-month, gross profit margin 10.2%, +2.0pct YoY, and -1.0pct month-on-month.
Performance reviews:
(1) 2023: Thanks to the company's diversification and platform-based operations, the overall revenue of the company continued to grow steadily, and some sectors maintained a high growth trend despite long-term fluctuations in the sector business. Among them, the photovoltaic materials business achieved revenue of 3.62 billion yuan, +0.3% year-on-year, gross profit margin of 9.5%, year-on-year -1.4 pct; PV operation and maintenance and longevity materials business achieved revenue of 50 million yuan, up +49.6% year-on-year, gross profit margin of 41.0%, year-on-year -27%, gross profit margin 13.1%, year-on-year -13.8pct.4.8pct; communications and consumer electronics business achieved revenue of 100 million yuan, +68.8% year-on-year, gross profit margin 29.3% year-on-year, +13.3pct; semiconductor, electrical, transportation materials The business achieved revenue of 390 million yuan, year-on-year.
(2) 2024Q1: If net profit increased month-on-month, it was mainly due to 1) increase in revenue scale; 2) Expense rate fell 2.3 pct to 7.7% month-on-month during the period; 3) Asset impairment losses impacted customer demand for all-round blue coating with 112 million photovoltaic films, and production capacity expansion is expected to have unscaled effects. 23 The company achieved PV film revenue of 2.44 billion yuan, +15.6% year over year, with shipments of 270 million square meters, of which T0pcon shipped 78 million square meters of adhesive film, and HJT shipped 0.27 million square meters of photovoltaic film 100 million square meters. In terms of products and markets, the company has become the main supplier of TopCon component manufacturers such as Jingao, Yidao, Tianhe, Artes, and Zhengtai; HJT optical transfer film products are the only domestic manufacturers to achieve mass production and delivery, and the supply customers have expanded to more than 20 companies including Huasheng, Elken, Mingyang, Guosheng, Runhai, Longji, Tongwei, Liansheng, etc.; for the single-section perovskite technology route, the company has achieved batch shipment; for the laminated perovskite technology route, the company and multiple perovskite heads The company develops phototransfer film products suitable for laminated perovskite. Current development progress and testing The feedback was good. In terms of production capacity, the company has now expanded production capacity to 400 million square meters per year; in addition, the Vietnamese factory at the overseas base is scheduled to be put into operation in mid-24, with a planned production capacity of 10GW of adhesive film and 10GW of backplane; a production capacity of 6GW is being planned to match future demand.
Diversified field development helps the company grow further, and the continuous verification and introduction of new products in the consumer electronics materials, electric vehicle materials, semiconductor materials and other business products+deepening customer cooperation+releasing new production capacity drives business development.
In addition, industrial tape has also made the leap from scratch, and is currently actively promoting market expansion.
Profit forecast and investment rating: Considering the impact of competition in the photovoltaic packaging materials market, we revised our profit forecast and expect net profit to be 2.1/3.4/40 billion yuan in 24-26 years (previous forecast value: 5.9/888 million yuan in 24-25 years), up 101%/62%/20% year over year. The current stock price corresponds to PE 26/16/13 times, respectively, maintaining the “buy” rating.
Risk warning: Industry demand falls short of expectations; market competition intensifies; market expansion falls short of expectations, etc.