Xinbo shares, as the only listed company in the field of photovoltaic aluminum frame, has recently shown a strong growth momentum in performance. Despite the competitive pressure in the industry, the company still achieved contrarian growth in performance with its unique business layout and strategic vision.
First of all, the company has significantly increased the production capacity of aluminum components for photovoltaics through two expansions. By the first half of 2023, industrial aluminum components have become the company's most important business, contributing 6039% gross margin. This data highlights the company's leading position and strong profitability in the field of photovoltaic aluminum frames.
In the future, the growth logic of Xinbo shares is clearly visible. On the one hand, the company plans to expand its production capacity through fundraising projects, and is expected to double its production capacity in the next two years. This will further consolidate the company's position in the photovoltaic aluminum frame market and bring it greater development space.
On the other hand, the company keeps up with the pace of photovoltaic module manufacturers and actively deploys overseas markets, especially in Southeast Asia, which is highly profitable. Through close cooperation with local module manufacturers, Xinbo is expected to gain more market share and profit margins in overseas markets.
In addition, with the downward trend of modules, the amount of aluminum frame, as an important auxiliary material for photovoltaic modules, has also increased significantly. Through the fundraising project, the company plans to produce 600,000 tons of recycled aluminum, which is twice the total shipment volume of 300,000 tons in 2023. It is expected that in 2024, the company will achieve a production capacity of 250,000 tons of recycled aluminum. The promotion and use of recycled aluminum is not only conducive to environmental protection, but also has become a mainstream photovoltaic frame auxiliary material due to its high value and low carbon emissions.
What's more worth mentioning is that Xinbo has established in-depth cooperative relations with well-known photovoltaic module manufacturers such as LONGi, Jinko, and JA Solar. These manufacturers occupy an important position in the global photovoltaic market, and with the overseas layout of module manufacturers, Xinbo will also follow its pace and further expand overseas markets. The company's projects in Malaysia and Vietnam have already started to be implemented, which is expected to become an important fulcrum for its overseas layout.
In the field of automotive lightweight, Xinbo shares also see huge market potential. In order to meet the growing demand for aluminum parts in this field, the company announced in May 2022 that it would invest in the construction of a project with an annual output of 100,000 tons of aluminum parts for new energy vehicles. The first phase of 50,000 tons of production capacity is expected to be mass-produced in the first quarter of 2024, and the company has cooperated with a number of leading new energy vehicle companies and sent samples for testing. It is expected that within the year, the company may obtain more fixed-point orders to further promote its business development in the field of automotive lightweight.
Overall, Xinbo Co., Ltd. has shown a strong momentum of development by virtue of its leading position in the field of photovoltaic aluminum frame and its strategic layout in the field of automotive lightweight. The company's future performance growth logic is clear, with the potential for sustainable development and broad market prospects. In terms of valuation, compared with other companies in the same industry, the valuation of Xinbo shares is relatively low, only about 8 times. Considering its future growth potential and market position, the company's valuation has a lot of room for improvement. Therefore, investors can focus on the investment opportunities of Xinbo shares, and expect it to achieve higher performance growth and market value improvement in the future.
Note: The data and opinions in this article are provided by the new team of Guojun Electric and are for reference only.
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