Brief comment on performance
On October 27, 2023, Sany will be able to release the third quarter report of 2023. In the first three quarters, the company achieved a total revenue of 7.49 billion yuan, an increase of 18%, and a net profit of 1.031 billion yuan, down 1.21%. Of this total, 3Q23 achieved an operating income of 3.575 billion yuan, an increase of 58.03%, a net profit of 214 million yuan, a decrease of 12.89%, and a non-return net profit of 68 million yuan, a decrease of 71.2%. The performance was in line with expectations.
Business analysis
Subject to the decline in the price of wind turbines in the industry, the company's 3Q23 gross profit margin decreased 5.82PCT compared with the previous month.
The company's gross profit margin in the first three quarters was 19.67%, with a drop in 6.47PCT, including a gross profit margin of 14.90% in 3Q23, a drop in 5.82PCT and a drop in 9.63PCT. The decline in profit is mainly due to the decline in the price of wind turbines in the industry.
The company continues to open up overseas markets. During the China-Central Asia Summit on May 18, 2023, in the presence of Kazakh President Tokayev, the company signed a memorandum of cooperation with the Kazakh Ministry of Energy, the Samruk-Kazena Fund and CLP International on the construction of 1GW wind power plus energy storage projects in Kazakhstan. On October 17, Zhou Fugui, chairman of the company, and Wang Zichao, secretary of the international party committee and chairman of CLP, and Zakupov, CEO of Samruk-Kazena Fund, jointly signed a tripartite cooperation agreement for Kazakhstan 1GW wind power + energy storage project to further determine the cooperation model of the project and lay a solid foundation for the follow-up development of the project.
The expense rate increased during the first three quarters compared with the same period last year. In the first three quarters, the company's expense rate was 20.05%, a change of + 0.5PCT over the same period last year, in which the sales expense rate, management expense rate (including R & D expenses) and financial expense rate were 8.66%, 13.26% and 1.87%, respectively, compared with the same period last year. + 1.12/+5.72/-1.09PCT.
Earnings forecast, valuation and rating
We expect the company's 2023-2025 return profit to be 16.12,23.22 and 3.049 billion yuan, with a corresponding valuation of 25, 17 and 13, maintaining a "buy" rating.
Risk hint
Policy risk, market competition risk, economic environment and exchange rate fluctuation risk, asset and credit impairment risk.