Jinwu Financial News | According to the Societe Generale Securities Report, the 2023Q3 Xinyi Electric Storage (08328) film business revenue was HK$133 million, +594% year-on-year and +72% month-on-month. Backed by Xinyi Group's raw material procurement, cost control, and customer resource advantages, as film certification and introduction work continues to advance, revenue gradually increases, and subsequent unit costs are expected to decrease, leading to increased profits.
The company's Canadian business continues to grow, and profit margins are impressive; profit margin requirements have been set for domestic projects, and revenue has declined. Subsequent companies plan to explore other high-potential overseas markets and differentiate competition; and promote photovoltaic+energy storage EPC to develop existing customers a second time; overseas EPC business growth can be expected.
The bank gave the company a target price of HK$3.46, corresponding to 2023-2025 PE of 37.3x, 23.1x, and 13.8x; the target price has room for 57.8% increase compared to the current price; maintaining the company's “increased holdings” rating, investors are advised to pay attention.