Arctech Solar(SH:688408) CAITONG SECURITIES·2024-09-13 08:03Investment Rating - The investment rating for the company is "Buy" (首次) [1] Core Views - The company is a leading player in the photovoltaic tracking bracket market, with a global market share of 9% as of 2023, ranking fifth worldwide according to Wood Mackenzie [2] - The company plans to raise 1.131 billion yuan through a targeted issuance to expand its photovoltaic bracket production capacity [2] - The economic benefits of tracking brackets are becoming increasingly evident, with a significant increase in penetration rates and a 26% year-on-year growth in total shipments of tracking brackets in 2023 [2] - The company has seen rapid growth in orders from emerging markets, particularly in India and the Middle East, with new signed orders in these regions exceeding 10 GW in the first half of 2024 [2] - Revenue projections for the company are 8.69 billion, 10.95 billion, and 13.24 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 684 million, 897 million, and 1.099 billion yuan [2] Summary by Sections 1. Company Overview - The company has been deeply involved in the photovoltaic bracket industry for over a decade, with a focus on expanding into emerging markets [2][9] - The company has established a global presence, with significant projects in India and the Middle East, and has shipped nearly 68 GW of products globally by the end of 2023 [9] 2. Business Performance - The company's revenue from bracket sales has shown rapid growth, with a 61.9% year-on-year increase in 2022, and a strong recovery in profitability following a downturn in 2021 [13] - The tracking bracket business has seen a significant increase in revenue, growing by 124.2% year-on-year to 3.598 billion yuan in 2023 [15] 3. Market Dynamics - The tracking bracket market is experiencing a surge in demand, with global installations reaching 446 GW in 2023, a 89% year-on-year increase [20] - The company is benefiting from the growing demand for photovoltaic installations, particularly in the U.S. and emerging markets, with a projected increase in global tracking bracket shipments to over 80 GW in 2024 [21] 4. Financial Projections - The company is expected to achieve revenues of 8.69 billion, 10.95 billion, and 13.24 billion yuan from 2024 to 2026, with corresponding net profits of 684 million, 897 million, and 1.099 billion yuan [2][4] - The projected PE ratios for the company are 18.97, 14.47, and 11.81 for the years 2024, 2025, and 2026 respectively [2]