Due to the impact of less than expected installation, revenue and net profit growth declined. Mingyang Intelligent released the 2023H1 financial report, the company's 2023H1 realized revenue of 10.559 billion yuan, down 25.84% from the same period last year, of which 2023Q2 realized revenue of 7.839 billion yuan, an increase of 10.2% over the same period last year, an increase of 188.2% over the previous year, and a net profit of 654 million yuan, down 73.28% over the same period last year. 2023Q2 realized a net profit of 880 million yuan, a turnround compared with Q1. The gross profit margin of the fan manufacturing business was 14.25%, down 9.79pct from the same period last year and 9.23pct higher than that of Q1.
Q2 offshore fan has been shipped, profitability is expected to continue to improve. In the first half of the year, the company sold fan 3445MW, down 0.35% from the same period last year, including onshore fan shipment 2935MW, up 34.53% year-on-year, offshore fan shipment 510MW, down 60.02% year-on-year shipment of 6-8MW model accounted for about 35%, offshore fan shipment of 0.51GWJ 11MW model accounted for about 65%, fan large-scale trend accelerated, Q2 quarter offshore fan shipment, fan bid price decreased slightly Comprehensive gross margin is expected to see marginal improvement in 2023H2.
Orders-on-hand 34.56GW increased by 39.6% over the same period last year, maintaining an upward trend. In the first half of 2023, the company added new orders 7.58GW, in-hand orders reached 34.56GW, an increase of 39.6% over the same period last year, and new orders 7.58GW, a decrease of 17.05% over the same period last year. The bidding scale of 2023H1 fan reached 48.74GW, down 16.3% from the same period last year, and the bidding scale remained high. From January to August, the company won the bid for 6.1GW fan, ranking fifth.
Vigorously expand the power plant operation business, smooth performance fluctuations. As of 2023H1, the company's new energy plant grid-connected installed capacity is about 1665MW, and the installed capacity under construction is about 4020MW, an increase of 1868MW compared with the end of last year. 2023H1 used an average of 1237.73 hours in operating power stations, of which wind power accounted for 1235.4 hours, photovoltaic power stations averaged 612.8 hours, and power generation business income totaled 833 million yuan, an increase of 18.6 percent over the same period last year.
It is expected that the new installed scale of wind power in 2023 will be 70GW, which will maintain a high magnificent bearing. From January to July 2023, the installed 26.31GW of wind power was increased by 76.2% compared with the same period last year. Offshore wind power was not installed as expected due to factors such as waterways. We believe that with the resolution of related problems, the new installed wind power in 2023 will be able to reach 70GW, an increase of 86% over the same period last year.
Profit forecast and investment suggestion: according to the company's new orders and the winning price, we estimate that the company's operating income in 2023-2025 will be 4064 million yuan (the original forecast is 307.5 pounds 41.87 billion yuan), and the return net profit will be 3.89 billion yuan respectively, which will be reduced by 16.4% 13.0% and 11.3% respectively, according to the DCF model. We maintain the target price down from 22.06 to 17.80 yuan per share (- 19%), and adjust the rating to "neutral".
Risk tips: 1, wind power installation is not as expected; 2, the fierce market competition leads to a sharp decline in gross profit margin; 3, the price of raw materials has risen sharply.