20230417-招银国际-晶盛机电-300316.SZ-1Q23E_profit_beat_expectations__Multiple_catalysts_ahead_5页_1mb

Zhejiang Jingsheng Group (stock code 300316 CH) reported its 1Q23 earnings forecast, with net profit expected to grow between 81-103% year-over-year to RMB 800-900 million, surpassing market expectations due to strong crucibles revenue growth and faster-than-anticipated equipment deliveries. This led to upward revisions in full-year earnings forecasts for 2023E, 2024E, and 2025E by 11%, 10%, and 7%, respectively. The target price was raised to RMB 106 from RMB 99, offering a significant upside potential of about 47.6%.

Key growth drivers include the upcoming launch of a 5th-generation crystal growing furnace in 2Q23, expected to provide differentiated products for customers. Additionally, TCL Zhonghuan's capacity expansion plans are viewed positively, with Jingsheng poised to win orders in solar cell equipment. The company is also planning a spin-off of its crucible business unit, which could enhance focus but carries execution risks.

The analysis identifies risks such as potential slowdown in solar power capital expenditure, lower-than-expected gross margins, and declining crucible prices, which could impact profitability. Currently, Zhejiang Jingsheng is rated "BUY" with a 15%+ return potential over the next 12 months, though this is subject to market conditions and specific risks.

The financial projections show robust revenue growth and improving margins, with target valuations at lower P/E and P/B multiples over time. Overall, Jingsheng is positioned to benefit from industry expansion, but investors should monitor catalyst execution and market dynamics.