Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [3]. Core Views - The company is a leader in the photovoltaic frame sector, with continuous expansion in operational scale and a strong competitive advantage due to its technological capabilities [3][4]. - The global demand for photovoltaic aluminum frames is expected to grow significantly, driven by the increasing installation of solar power systems [4][63]. - The company is expanding its production capacity and is focusing on cost reduction through upstream integration into recycled aluminum [4][5]. Summary by Sections 1. Company Overview - The company, established in August 2016, focuses on the research, production, and sales of green energy structural materials, primarily photovoltaic frames, BIPV products, and photovoltaic support structures [22][24]. - It has become one of the leading manufacturers of aluminum photovoltaic structural components in China, with a successful IPO on the Shanghai Stock Exchange in June 2024 [22][24]. 2. Market Demand and Growth - The global photovoltaic installation capacity continues to grow, with a 69.57% increase in 2023, leading to a sustained demand for aluminum frames [63]. - The report forecasts that the global demand for photovoltaic aluminum frames will reach 319 million tons by 2026, with a compound annual growth rate (CAGR) of 10.88% from 2023 to 2026 [4][63]. 3. Financial Performance - In 2023, the company achieved a revenue of 5.391 billion yuan, a year-on-year increase of 4.05%, and a net profit of 371 million yuan, up 50.74% [28]. - For the first three quarters of 2024, the company reported a revenue of 5.735 billion yuan, a 47.07% increase year-on-year, but a net profit decline of 29.35% [28]. 4. Production Capacity and Cost Management - The company is expanding its production capacity to 690,000 tons, with five major production bases in China and Vietnam, which will enhance its scale advantages [4][5]. - The integration into recycled aluminum production is expected to significantly reduce material costs and improve profit margins [4][5]. 5. Product Diversification - The company is diversifying its product offerings by entering the BIPV and photovoltaic support structure markets, which will enhance its resilience against market fluctuations [5][30]. - In 2023, the revenue contributions from BIPV and support structures were 557,710 yuan and 1.45 billion yuan, respectively, indicating the initial formation of a product matrix [5][30]. 6. Future Projections - The report projects revenues for 2024, 2025, and 2026 to be 8.541 billion yuan, 12.580 billion yuan, and 16.814 billion yuan, respectively, with corresponding net profits of 196.64 million yuan, 378.72 million yuan, and 637.11 million yuan [6].
永臻股份：公司深度报告：技术规模铸竞争优势，边框龙头迎长期成长