\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 93 Jolywood (Suzhou) Sunwatt Co.Ltd(300393) )
The performance of 21 years was under pressure, and the gross profit margin of 22q1 was significantly improved
The company released the annual report of 2021 and the first quarterly report of 2022: in 2021, the company achieved a revenue of 5.820 billion yuan, a year-on-year increase of + 14%; the net profit attributable to the parent company was -313 million yuan, a year-on-year increase of - 424%; the net profit attributable to the parent company after deduction was -366 million yuan, a year-on-year increase of - 256%. In 2022q1, the company achieved a revenue of 2.009 billion yuan, with a year-on-year increase of + 78%: the net profit attributable to the parent company was 89 million yuan, with a year-on-year increase of + 648%: the net profit attributable to the parent company after deduction was 78 million yuan, with a year-on-year increase of + 1302%. 22q1 gross profit margin was 18.19%, with a year-on-year increase of + 9.93pct and a month on month increase of + 4.70pct. The gross profit margin increased significantly year on year and month on month, and the profitability was significantly improved
The loss of battery business dragged down the company's performance
Low price overseas orders, increase in raw materials and sea freight and provision for asset impairment are the main reasons for the company's loss in 21 years. The total sales volume of the company's battery and module business in 21 years was 199791mw (including 993.75mw sales to third parties), and the recognized operating revenue was 1.66 billion yuan, a year-on-year increase of - 32.05%; The gross profit margin was -4.30%, with a year-on-year increase of -13.27%. At the beginning of the 21st century, the company signed many low-cost overseas orders, superimposed the sharp rise in the prices of raw materials and sea freight in the past 21 years, and the rising pressure on the cost side was difficult and slow to transmit to end customers, resulting in poor overall performance of battery and module business in the past 21 years. At the same time, since the shipment volume of 158 size products has decreased significantly to 0.56% since the fourth quarter of 21, the company expects that the market share of this product will be further reduced in the future. Therefore, the provision for asset impairment is made for this part of production line equipment, with an amount of about 330 million yuan.
TOPCON battery has an existing capacity of 3.6gw and a new 16GW in Shanxi. It is expected to have a capacity of about 20GW in the next 2-3 years. Company n topcon2 0 technology has been mass produced in 21 years and topcon3 is being promoted 0 technology research and development, 3.0 will focus on cost reduction process technology. The company's future battery technology route is expected to be topcon3 0 → TBC → lamination technology.
Backplane sales increased steadily
The revenue of backplane business in 21 years was 1.851 billion yuan, a year-on-year increase of + 36.59%; The gross profit margin was 21.06%, with a year-on-year increase of -4.06%. In 21 years, the overall shipment volume of backplane reached 168 million square meters, a year-on-year increase of + 30.67%. Due to the sharp rise in the price of PVDF, the raw material of k-film backplane, the company does not need to use PVDF for FFC coated backplane, so the sales volume has increased steadily, and the shipment volume of FFC single product has increased by about 170% year-on-year in 21 years. The company's backplane business will expand its annual production capacity by about 30 million square meters through technical transformation and process improvement in 2021. By the end of 21, it has a production capacity of 170 million square meters, corresponding to about 40gw components. The company plans to expand its production capacity by more than 50 million square meters every year in 25 years. It is expected that the total backplane production capacity will increase to about 370 million square meters in 25 years.
Smooth progress of household business
The revenue of photovoltaic system business in 21 years was 2.207 billion yuan, a year-on-year increase of + 88.62%, and the gross profit margin was 15.34% and - 10.88%. In 21 years, the company adjusted the household business model, established a joint venture with SDIC to jointly develop the household photovoltaic business, and provided EPC services to Shanghai Yuanye by Zhonglai Minsheng. Although the gross profit margin of this business model is much lower than the credit sales model, the company can operate in the form of asset light, which plays a positive role in reducing the occupation of funds and alleviating the pressure of funds. The company's subsidiaries, Zhonglai Minsheng and Shanghai Yuanye, have built a power station with a capacity of 1067mw, started a power station with a capacity of 995.6mw, and have accepted and delivered 666.46mw.
Profit forecast and investment suggestions
The company's performance rebounded and its business is expected to blossom at many points. We estimate that the operating revenue of the company from 2022 to 2024 will be RMB 15.080 billion, RMB 22.551 billion and RMB 30.546 billion respectively, with a year-on-year increase of 159.1%, 49.5% and 35.5% respectively; The net profit attributable to the parent company was 615 million yuan, 1.202 billion yuan and 1.906 billion yuan respectively, with a year-on-year increase of 296.2%, 95.5% and 58.5% respectively. The current share price corresponds to 20, 10 and 7 times of PE in 22-24 years respectively. Maintain the "buy" rating.
Risk tips
The risk that the project cannot be financed in time, resulting in the increase of financial expenses; Policy fluctuation risk of photovoltaic industry; The risk of intensified market competition;
