Since the "924" new policy, the A-share market has experienced a rapid upward trend, transitioning from a general upward phase to a phase of differentiation and adjustment. The overall market volatility remains high. Against this backdrop, the performance of new stocks is particularly impressive, with many new stocks doubling or even increasing by over ten times on the first day.

On October 29, the Science and Technology Innovation Board welcomed a new stock - Laplace (688726.SH).

According to public information, Laplace's issue price is 17.58 yuan, with a P/E ratio of 19.87 times, lower than the industry average P/E ratio of 25.57 times. On the first trading day, Laplace's opening price was 100 yuan, with an increase of over 460%.

As a newcomer in the Science and Technology Innovation Board, Laplace is known for its technological expertise, belonging to the technology innovation companies currently favored by the market. Its excellent market performance meets expectations.

1. High-growth performance highlights high-quality fundamentals.

Generally speaking, the more volatile the market, the more important it is to pursue certainty, which means that the importance of company fundamentals is elevated, and performance to a large extent summarizes the fundamentals.

According to the company's prospectus disclosure, from 2021 to 2023, Laplace's revenue was 0.104 billion yuan, 1.266 billion yuan, and 2.966 billion yuan respectively, with a compound annual growth rate of 435.13%; net income attributable to shareholders was -0.057 billion yuan, 0.118 billion yuan, and 0.411 billion yuan respectively, showing a significant growth in profitability.

According to the company's announcement, Laplace is expected to achieve operating income of 3.6 billion yuan to 4.39 billion yuan from January to September 2024, with a year-on-year growth of 147.41% to 201.70%; the net income attributable to shareholders of the parent company after deducting non-recurring gains and losses is expected to be 0.44 billion yuan to 0.53 billion yuan, an increase of 285.20% to 363.99% compared to the same period last year.

Laplace is able to achieve counter-cyclical growth against the backdrop of intensified competition in the industry in recent years, while always maintaining high growth, which is quite remarkable.

More importantly, whether in the short or long term, Laplace's growth potential is quite attractive.

Firstly, Laplace still has billions of orders in hand, which are sufficient to support future performance for the next two years. As of the end of June 2024, the company's order backlog amounted to 11.296 billion yuan.

Secondly, taking a longer-term perspective, the choice of route in the photovoltaic industry is crucial; it directly affects whether a company can maintain a leading position in the intense market competition.

Laplace's product portfolio covers various new and efficient photovoltaic solar cell technologies such as TOPCon and XBC, allowing flexibility to adapt to market changes and meet the needs of different customers.

Although the debate over strategies is not over, and the ultimate solution for the industry remains uncertain, Laplace's diversified preparations ensure it maintains the qualification to stay in the game, which is a key factor in having certainty in a constantly evolving industry.

The photovoltaic industry still holds great potential, bringing more room for imagination through entering the semiconductor sector.

As one of the important green energy sources, photovoltaics is a key lever for China to achieve its dual-carbon goals, and there is still a great potential for future growth.

According to IRENA's forecast, renewable energy will account for 50% of the overall energy consumption in the future, with photovoltaic power generation accounting for 25% of the total electricity demand. According to the statistics from the International Energy Agency (IEA) released in the 'Global Energy Industry 2050 Net Zero Emission Roadmap', global solar PV will see an annual addition of 630GW of new installed capacity by 2030.

However, the massive market has also attracted numerous participants, and the level of market competition is extremely fierce. Laplace is able to stand out from the intense market competition to a large extent due to a profound understanding of industry trends. To some extent, this is inseparable from Laplace's 'science genes'.

The company's founder, Lin Jiaji, serves as both the helmsman of Laplace and the company's 'number one technician'. He studied at Xiamen University and Nanyang Technological University in Singapore, earning a PhD in Physics from Nanyang Technological University in 2008. After graduating, he worked at the Solar Energy Research Institute of Singapore (SERIS) before officially transitioning from a scientist to an entrepreneur in 2017, assuming the role of Chairman and CEO of Laplace.

Scientists turned entrepreneurs always prioritize technology, and Laplace is no exception. From 2020 to 2023, the company's annual R&D expenses increased significantly from 27.3178 million yuan to 0.232 billion yuan, with a compound growth rate exceeding 100%.

The profound grasp of technology is the foundation that allows Laplace to seize the dividends of the solar industry's transformation from P-type to N-type. In 2017, Laplace pioneered the mass production of key processes in the N-type cell process, boron diffusion equipment and LPCVD equipment, providing mature and reliable solutions for preparing tunnel oxide layers and doped polycrystalline silicon layers, addressing the core technological pain points of industry transformation and upgrading.

Furthermore, in pursuit of the eternal theme of reducing costs and increasing efficiency in the solar industry, Laplace fully leverages its technological advantages to continuously iterate products and has helped downstream companies break the world record for photovoltaic cell conversion efficiency more than 10 times.

Laplace's emphasis on scientific research has also received strong support from the government. According to the Shenzhen Municipal Human Resources and Social Security Bureau, it is planned to establish Shenzhen Postdoctoral Innovation Practice Bases in multiple companies, including Laplace New Energy Technology Co., Ltd. This move is beneficial for in-depth integration of production, education, and research. For companies like Laplace that excel in technology, it can further solidify core advantages.

Technological advantages not only allow Laplace to continuously cultivate in the photovoltaic field and establish moats, but also give it more possibilities. For example, Laplace is gradually expanding into the field of semiconductor discrete device equipment, which is another interpretation of the company's in-depth understanding of industrial transformation trends.

Against the backdrop where technological competition has become the core of national competition, the domestic semiconductor industry has encountered unprecedented development opportunities. Among them, the prosperity of semiconductor discrete devices, represented by third-generation semiconductors, continues to rise.

In response to this trend, Laplace has developed a series of products with comparative advantages that can be applied in the corresponding fields, such as oxidation, annealing, coating, and packaging, and has successfully introduced them to downstream leading companies such as BYD and Basic Semiconductors.

The obsession and exploration of technology have made Laplace what it is today.

III. Conclusion

In a highly volatile market environment, Laplace has won the trust of investors and market recognition with its solid performance foundation and clear growth path. The company has not only continuously pushed the technological limits in the photovoltaic field but also demonstrated ample potential in the semiconductor equipment sector, undoubtedly providing diversified impetus for the company's long-term development.

A technology rising star with both certainty and growth potential, how it will be evaluated in this market dominated by technology is worth looking forward to.