Event description
According to the company's semi-annual report of 2023, its revenue in the first half of 2023 was about 10.56 billion yuan, down 26% from the same period last year, and its net profit was 650 million yuan, down 73% from the same period last year. 2023Q2 realized operating income of 7.84 billion yuan, an increase of 188% from the previous month, and a net profit of 880 million yuan from the previous year, reversing losses compared with the previous performance forecast.
Event comment
From a half-year perspective, 23H1's revenue declined from the same period last year; the gross profit margin of sales was 18%, down about 7pct from the same period last year. During the period, the expense rate was about 12.7%, which increased 1.7pct over the same period last year. Among them, the company's sales expense rate, management expense rate and R & D expense rate were about 4.8%, 3.7% and 4.3% respectively, which increased 0.7pct, 1.3pct and 0.5pct respectively over the same period last year, while the financial expense rate was about-0.1%, a decrease of 0.8pct over the same period. In the end, the company achieved a net sales interest rate of about 6.2%, down about 11pct from a year earlier.
Among them, 23H1 split business, 1) Fan and parts sales: 23H1 company fan external sales of about 3.45GW, realizing fan and related accessories revenue of about 9.45 billion yuan, down 29%; gross profit margin 14.3%, down about 3.5pct 2) Power station operation: 23H1 generated about 1238 hours on average and generated a total of 2.011 billion kilowatt hours in operation of the power station, achieving revenue of 830 million yuan, an increase of 18.49% over the same period last year, and a gross profit margin of 64.32%, which increased 4.4pct over the same period last year. At the same time, in the first half of the year, we expect the company to achieve the rolling development of a certain power station, with an investment income of about 290 million yuan.
From a quarterly perspective, 23Q2's revenue has more than doubled from the previous quarter, with a gross profit margin of about 20% and a month-on-month increase of about 7pct; during the period, the expense rate is about 9%, a month-on-month decrease of about 15pct. Among them: the company's sales expense rate, management expense rate and R & D expense rate are about 4.3%, 2.2% and 3.7% respectively, with a month-on-month decrease of 2.2pct, 6.0pct and 2.2pct, respectively, and a financial expense rate of about-1.2% and a month-on-month decrease of 4.2pct. In the end, the company Q2 achieved a net sales interest rate of 11.3%, a month-on-month increase of about 20pct, to achieve a turnaround.
23H1 added a new fan order 7.6GW. By the end of June 2023, 1.67GW in operation of the power plant increased by 11.04% compared with the same period last year, and 4.02GW in the construction of the machine increased by 87%.
The company has ushered in a clear operating inflection point in the second quarter, with net profit reversing losses and fan gross profit margin significantly higher than the same period. Looking forward to the follow-up, we expect that with the further growth of the company's fan delivery scale, the continuous promotion of fan cost reduction measures, and the rolling development and transfer of superimposed power stations, it is expected to contribute considerable performance increments. It is estimated that the net profit of the company in 2023 is 4 billion yuan, corresponding to PE of about 8 times. Maintain a "buy" rating.
Risk hint
1. Wind power installation is not as expected.
2. The increasing competition leads to the lower-than-expected profitability.