Core viewpoints
In the first half of 2023, the company realized revenue of 253 million yuan, + 114% compared with the same period last year, and returned to its mother with a net profit of 3.6 million yuan, deducting 1.6 million yuan after deducting non-profit. Among them, the charging pile business benefits from the rapid growth of downstream demand, including domestic energy giants such as State Grid, Petrochina Company Limited and China Petroleum & Chemical Corp, as well as international energy companies such as BP and Shell. The overall net profit of new energy amounts to 6.149 million yuan, corresponding to the net interest rate of 2.6%.
The second half of the year is usually the peak season for charging pile delivery, and the company's revenue from charging pile business is expected to continue to grow at a high speed throughout the year.
Event
The company released its mid-2023 report.
In the first half of 2023, the company achieved revenue of 253 million yuan, + 114% compared with the same period last year; the net profit of returning to the mother was 3.6 million yuan, deducting 1.6 million yuan after deducting non-profit, turning losses into profits; in the same period last year, the net profit of returning to the mother was-1 million yuan, deducting-15 million yuan.
Of which 2023Q2 revenue is 155 million yuan, year-on-year + 108%, month-on-month + 57%; net profit is 4 million yuan, deducting 4 million yuan; net profit of the same period last year is 6 million yuan, deducting-8 million yuan, 2023Q1 net profit is-1 million yuan, deducting non-post-2 million yuan.
Brief comment
Charging pile: benefit from the strong demand downstream to achieve rapid growth.
From January to June 2023, the domestic charging infrastructure increased by 1.442 million, of which 351000 were public charging piles and 1.091 million were private charging piles built with cars. As of June 2023, the cumulative number of charging infrastructure nationwide reached 6.652 million, an increase of 69.8 percent over the same period last year. Benefiting from the strong demand in the lower reaches of the industry, the company's charging pile business has achieved rapid development. At present, the company's charging pile products include 7kW AC pile, 7kW-180kW DC charger pile, 360kw dual gun DC charger and 360kW-720kW DC charger stack, of which 60-180kW charger has passed the European standard certification, downstream customers include domestic energy giants such as State Grid, Petrochina Company Limited, China Petroleum & Chemical Corp, as well as international energy companies such as BP, Shell and so on.
It is estimated that the revenue of the company's charging pile business in the first half of the year is about 230 million yuan, and the overall gross profit margin is stable at 28%. The slight decline in Q2 is mainly due to the slight drag on the operating end and EPC profits; the overall net profit of new energy is 6.149 million yuan, corresponding to the net profit rate of 2.6%. The second half of the year is usually the peak season for charging pile delivery, and the company's revenue from charging pile business is expected to continue to grow at a high speed throughout the year.
Energy storage: the product has been stored, and the quantity is worth looking forward to.
The company's energy storage business is expected to have small revenue in the first half of the year, but related products have been stockpiled, including 30kW/64kWh and 107kW/215kWh energy storage systems. At present, the company's energy storage business customers take large energy users such as industrial and commercial parks, local construction main bodies and other demonstration units as the main body to build integrated energy storage or light storage and charging projects for such customers.
It is estimated that the company's net profit in 2023 and 24 will be 0.51 and 165 million yuan, corresponding to 93 and 29 times of PE, which will be rated as "overweight".
Risk analysis.
1) the production and marketing of downstream charging piles are not as expected: charging piles are currently the company's fastest growing business, which plays a strong supporting role in the company's performance. We expect the revenue growth of the company's charging pile business to grow by 220%, 79% and 41% in 2023-25. However, the sales volume of the charging pile may fall short of expectations due to the impact of channel demolitions and weak demand, if the product growth rate drops to 176%, 68%, 32%. It will cause the company's overall revenue growth to decline from 211%, 83% and 44% to 177%, 75% and 37%.
2) overseas policy uncertainty: in recent years, the US government has introduced relevant policies to raise trade barriers, such as requirements on the assembly location of charging piles and the origin of a certain proportion of spare parts, which may lead to less-than-expected domestic industrial chains going out to sea.
3) the promotion of the company's key projects is not as expected: as a participant in the new energy track, the promotion of key projects is not only the key to support revenue and profits, but also a reflection of the company's growth, which will affect the current and long-term performance.