Brief comment on performance
On October 27, 2023, Mingyang Intelligence released the triennial report of 2023. In the first three quarters, the company realized revenue of 20.958 billion yuan, down 3.26%, realized net profit of 1.228 billion yuan, down 65.56%, and deducted 1.075 billion yuan of non-return net profit, down 67.33%.
Of this total, 3Q23 achieved a revenue of 10.399 billion yuan, an increase of 40.04%, a net profit of 574 million yuan, a decrease of 48.65%, and a non-return net profit of 538 million yuan, a decrease of 45.68%. The performance was basically in line with expectations.
Business analysis
3Q23 profits fell month-on-month. In the first three quarters, the company's gross profit margin and net profit margin were 15.78% and 6.04% respectively, year-on-year changes-7.43/-10.37PCT. The company's 3Q23 gross profit margin was 13.17%, which fell by 6.92% due to the downward price of wind turbines.
During the first three quarters, the expense rate increased slightly compared with the same period last year. The expense rate during the first three quarters of the company was 10.83%, which changed 4.46PCT over the same period last year, including sales expense rate, management expense rate (including R & D expenses), and financial expense rate of 4.17%, 6.57%, 0.09%, respectively, changing from the same period last year-0.29/+0.07/+0.68PCT.
Overseas expansion accelerated, Japanese orders were delivered and South Korea received the first order. The company has obtained the certification issued by METI of the Ministry of economy, Trade and Industry of Japan and ClassNK, the Japanese classification society, and successfully delivered the offshore wind power project in Shinshanchi, Japan, which is the first time that the offshore wind power project in Japan has adopted wind turbines produced by Chinese wind turbine manufacturers. The company strengthens its business development in East Asia and obtains South Korean orders for the first time.
Double breakthroughs in output and profit of photovoltaic heterojunction. The company's first heterojunction battery production line reached production in the first half of 2023, corresponding to the company's photovoltaic plate gross profit margin of more than 2% in the first half of the year. In the future, with the continuous application of cost reduction technologies such as silver and copper, photovoltaic products will create the second growth curve for the company.
Earnings forecast, valuation and rating
We expect the net profit from 2023 to 2025 to be 35, 42 and 4.9 billion yuan, and the current stock price corresponding to PE is 10, 8 and 7 times, respectively. Maintain a "buy" rating
Risk hint
Fluctuation of RMB exchange rate; reduction of major shareholders; lifting of ban on restricted shares.