SkyTeam Releases Annual Report for 2023 and Quarterly Report for 2024. In 2023, the company achieved total operating income of 113.392 billion yuan, up 33.32 percent YoY, net profit of 5.531 billion yuan, up 50.26 percent YoY, gross sales margin of 15.86 percent, YoY plus 2.43pct, net sales margin of 5.29 percent, YoY plus 0.99pct. Among them, 23Q4 company achieved revenue of 32.272 billion yuan, the same month-on-month 20.18%/1.69%, the realization of the return of net profit of 0.454 billion yuan, the same month-on-month -64.48%/-70.45%. 24Q1 Company achieved revenue of 18.26 billion yuan, the same month-on-month -14.37/ -43.43%, the realization of the return of net profit of 0.516 billion yuan, the same month-on-month -70.83/13.53%, the realization of non-return net profit of 44700 yuan, the same month-on-month -74.15/-29.59%.

shipments continued to grow, competition intensified earnings downward. In 2023, the company shipped 65.2GW of components, an increase of 51%;24Q1 component shipments 14GW plus (confirmed about 12GW plus), a profit of 3 points per watt. We expect 24 years of company component shipments of 80-90GW, China is expected to be 40% plus, Europe over 20%, North America 10%.

optical storage integration development, multi-business synergy. In 2023, the company shipped 9.6GW of distributed systems, an increase of 54.8. Support shipments were 9.6GW (tracking support 4.6GW), up 118.2, with a profit of 1 point per watt. 24Q1 distributed system shipped 1.7GW (confirmed 1GW), with a profit of 2 cents per watt. Support shipment 1.8GW; Energy storage shipment 400-500MWH.

global layout, enhance the competitiveness of overseas markets. The company's 23-year-end silicon/battery/module capacity is 55/75/95GW, and is expected to be 60/105/120GW by the end of 24. In 2023, the company will add new planned capacity projects in the United States, Indonesia and the United Arab Emirates.

investment advice: we expect the company's 24-26 net profit to be 42.20/62.69/8.09 billion yuan, up -23.7/48.5/29.0 year on year, corresponding to EPS of 1.94/2.88/3.71 yuan respectively, maintaining the "overweight" rating.

Risk Warning: The growth rate of the photovoltaic industry is declining; The risk of raw material price fluctuations; Industry competition intensifies;