Event
In the first three quarters of 2023, the Company realized operating income of 12.602 billion yuan,+19.5% year-on-year; net profit attributable to parent was 274 million yuan,+32% year-on-year; net profit deducted from non-parent was 326 million yuan,+153.5% year-on-year. Among them, 23Q3 realized revenue of 4.383 billion yuan, year-on-year +28.3%, month-on-month +4.2%; net profit attributable to parent was RMB 72 million yuan, year-on-year +7.7%, month-on-month-24.1%; net profit deducted from non-profit was RMB 154 million yuan, yoy+200.3%, month-on-month +76.7%.
The traditional sector has steadily increased in operation, and the wind power blade production capacity has been continuously released. In the first three quarters of 23 years, the rail-crossing sector realized sales revenue of 1.43 billion yuan, of which Q3 revenue was 496 million yuan, slightly higher than that of the previous quarter; the sales revenue of the Industrial and Engineering Division in the first three quarters was 1.37 billion yuan, of which Q3 revenue was 440 million yuan, basically flat than that of the previous quarter.
In the first three quarters, the sales revenue of wind power sector was 4.38 billion yuan,+28.1% year-on-year, among which Q3 revenue was 1.565 billion yuan, up 65% year-on-year and 10% month-on-month. The total output of wind turbine blades in the first three quarters was 12GW.
Market share continued to maintain the second position in the domestic industry (first half data), and overseas business cooperation with Nordex was realized again. The domestic production capacity has been continuously improved, and the construction of overseas bases has been promoted as planned.
The company plans to set up Hami Branch, responsible for wind power blades and supporting parts business in Northwest China.
When the adjustment of automobile business is carried out, it can be expected to be carried out lightly.
The automobile sector Q3 realized sales revenue of 1.8 billion yuan,+27% year-on-year. The company steadily promoted the strategy of low cost base, completed the third phase project of Wuxi factory, Mexico factory and Slovakia factory; Xinjai Germany (Bogo) planned to close the Bonn factory in Germany in 2024, and terminated labor relations with about 160 employees in Bonn factory by paying dismissal compensation (some expenses have been shown in Q3 statement).
We expect the auto sector to reverse in the second half of next year.
other data
(1) Gross profit margin: In the first three quarters of 2023, the gross profit margin of the Company was 16%, up 4.6pct year-on-year, and the gross profit margin of 23Q3 was 17.6%, up 5.3pct year-on-year and up 1.37pct month-on-month, mainly due to the decrease in raw material prices;(2) expense ratio: the management expense ratio of 23Q3 was 7.9%(corresponding to RMB 340 million), up 3.8pct month-on-month and up 3.6pct year-on-year, mainly due to the dismissal expenses of European factories (one-off). (3)Net interest rate: Q3 net interest rate 0.92%, down 1.08% month-on-month, mainly due to the increase in management expenses.
Excluding the impact of one-time expenses, Q3's net interest rate for a single quarter was 4.5%.
Investment suggestion: The company is a Chinese car company, with sufficient momentum to improve quality and reduce cost under equity incentive. All major businesses are expected to resonate upward. We slightly adjust the company's expenses. It is estimated that the net profit of the company in 23-25 years will be 5.0/6.9/9.0 billion yuan respectively, maintaining the "Buy" rating.
Risk warning: wind power installed capacity is less than expected, raw material price fluctuation risk, international operation management risk, industry competition risk, supply chain risk