S.C(SZ:300724) Soochow Securities·2024-04-23 03:30Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company achieved a significant revenue increase of 45.4% year-on-year in 2023, reaching 87.33 billion yuan, with a net profit growth of 56.0% to 16.34 billion yuan [3][9] - The company is expanding its specialized equipment platform, covering various photovoltaic technologies including TOPCon, HJT, and perovskite [3][16] - The financial outlook is positive, with expected net profits of 26.2 billion yuan, 35.3 billion yuan, and 39.9 billion yuan for 2024, 2025, and 2026 respectively, leading to a maintained "Accumulate" rating [19] Summary by Sections Financial Performance - In 2023, total revenue was 87.33 billion yuan, with a year-on-year increase of 45.4%. The revenue from process equipment was 70.6 billion yuan, up 42.3%, accounting for 80.9% of total revenue. Automation equipment revenue was 11.4 billion yuan, a 96.2% increase [2][3] - The net profit attributable to shareholders was 16.34 billion yuan, reflecting a 56.0% year-on-year growth, while the net profit excluding non-recurring items was 15.3 billion yuan, up 57.0% [3][9] Profitability - The company's gross margin for 2023 was 28.9%, an increase of 3.5 percentage points year-on-year. The gross margin for process equipment was 27.8%, up 3.4 percentage points, while automation equipment gross margin was 22.4%, up 9.2 percentage points [12][14] - The net profit margin was 18.9%, an increase of 1.3 percentage points year-on-year [12] Cash Flow and Inventory - As of the end of 2023, the company's contract liabilities reached 18.111 billion yuan, a 212% increase year-on-year, and inventory was 21.282 billion yuan, up 201% [14] - The net cash flow from operating activities was 3.517 billion yuan, a 142% increase year-on-year [22] Technological Advancements - The company has achieved full coverage of photovoltaic equipment technologies, including TOPCon, HJT, and perovskite. Notably, the average conversion efficiency of HJT cells reached 25.4% [16][17] - In semiconductor equipment, the company successfully developed high-temperature treatment equipment for silicon carbide [17] Investment Outlook - The company is expected to benefit from the continuous expansion of TOPCon production, with new orders significantly increasing. The projected net profits for 2024-2026 are 26.2 billion yuan, 35.3 billion yuan, and 39.9 billion yuan respectively, with corresponding dynamic P/E ratios of 8, 6, and 5 [19][21]