Core viewpoints
According to the company's semi-annual report for 2023, the company's operating income for the first half of 2023 was 3.915 billion yuan, down 4.12 percent from the same period last year, and its net profit was 817 million yuan, an increase of 2.38 percent over the same period last year. Q2 realized operating income of 2.351 billion yuan in a single quarter, up 15.52% from the same period last year; net profit returned to its mother was 335 million yuan, up 66.67% from the same period last year; and non-net profit was 277 million yuan per quarter, up 37.81% from the same period last year. In the first half of 2023, the company's operating income was 3.915 billion yuan and its gross profit margin was 24.03%, up slightly from 23.55% in 2022. Sany basically maintained a good gross profit margin in the face of a general decline in the average delivery price of the industry.
Event
According to Sany's semi-annual report for 2023, the company's operating income for the first half of 2023 was 3.915 billion yuan, down 4.12% from the same period last year, and its net profit was 817 million yuan, an increase of 2.38% over the same period last year. Q2 realized operating income of 2.351 billion yuan in a single quarter, up 15.52% from the same period last year; net profit returned to its mother was 335 million yuan, up 66.67% from the same period last year; and non-net profit was 277 million yuan per quarter, up 37.81% from the same period last year.
Brief comment
The scale of new orders and existing orders both hit record highs.
In the first half of 2023, the company's new order 8.35GW 7.50GW was 16.31GW at the end of June 2023, an increase of 117.47% compared with the same period last year (including orders without contracts). At present, the main models of the company's new orders are 6.25MW and 6.7MW.
Gross profit margin has strong pressure resistance and stable performance.
In the first half of 2023, the company's operating income was 3.915 billion yuan and its gross profit margin was 24.03%, up slightly from 23.55% in 2022. The gross profit margins of Q1 and Q2 are 29.0% and 20.7% respectively, which fluctuates to a certain extent due to the degree of competition in the industry, changes in product structure, changes in the relationship between supply and demand in the upstream and downstream, but in the case of a general decline in the average price of delivery in the industry. Sany can basically maintain a good gross profit margin.
H1 transferred three wind farms to achieve better investment income, sufficient stock laid the foundation for future investment income in the first half of 2023, the company transferred a total of three wind farms, the total project capacity of 250MW. Among them, Q1 sold 100% of Taihang Mountain New Energy in Yanjin County, Q2 sold 80% of Longhui Lengxi Mountain New Energy and 100% of Channel Chiyuan New Energy.
The difference in the share of the subsidiary's net assets at the level of the consolidated financial statements corresponding to the disposal price and the disposal investment amounts to 670 million yuan. The investment income of 2023Q1 is 411 million yuan, and that of Q2 is 385 million yuan. As of June 30, 2023, the company has a stock of wind power station 411.6MW and wind farm 707.1MW under construction, laying a good foundation for achieving better investment returns in the future.
The investment in R & D has increased significantly, which will contribute to the development of Haifeng market.
In the first half of 2023, the company's R & D investment reached 430 million yuan, an increase of 48.5% over the same period last year, mainly from the company's increased R & D investment in 919 projects, 915 projects, SI-2006X model development, 9198 projects and SI-19367&20067 model development projects. The company's efforts in adapting to the development trend of large megawatt onshore wind turbines in the parity era and seizing the development opportunities of offshore and overseas wind power have laid the foundation for the future development of sea breeze.
Additional investment in Delijia, deepening the binding 2023Q1 with key suppliers, Sany can hold 15.27% of Delijia transmission shares, and Sany can invest an additional 670 million, increasing the shareholding ratio to 28.06%.
Strengthen the control and influence of Sany on Delijia, strengthen the layout of the whole wind power industry chain, ensure the safety of supply, and reduce production costs.
Profit forecast and valuation: we expect the company to achieve operating income of 156.67 yuan, 206.93 yuan and 26.177 billion yuan respectively from 2023 to 2025, with a net profit of 18.45 yuan, 24.32 yuan and 3.042 billion yuan, corresponding to 19.9,15.1 and 12.1 times of PE respectively, maintaining the "overweight" rating.
Risk hint
(1) the risk of fluctuation in the international macroeconomic situation: there are uncertainties in the operation of the global economy, and there are certain challenges for companies to carry out overseas business.
(2) the risk of high customer concentration: high customer concentration, mainly large state-owned enterprises, even if there are problems in docking a small number of customers, it will bring great fluctuations to the company's performance.
(3) the industry competition aggravates the risk: the concentration degree of the wind power industry is high, at present Sany energy has entered the first echelon, facing strong competitors, the fierce competition may affect the company's performance.
(4) spare parts price fluctuation risk: the company's upstream raw material castings and forgings, spindle, gearbox and other external procurement, upstream raw material price fluctuations, will affect the company's profitability.