Event: the company announced that 2023Q1-3 realized revenue of 1.872 billion yuan and increased by 24.62%; vested net profit of 203 million yuan decreased by 0.92%; deducted non-vested net profit of 176 million yuan decreased by 8.60%. Among them, 2023Q3's single-quarter operating income of 652 million yuan increased by 7.03%, the vested net profit of 65 million yuan decreased by 33.41%, and the vested net profit of 56 million yuan decreased by 42.24%.
Gross profit margin has been under pressure and cash flow has improved. 2023Q1-3 achieved a gross profit margin of 21. 5%.
52% of the same decline in 6.04pct is mainly due to the increase in the cost of implementing the project; the expense rate of 9.69% is 1.89 pct; the company's sales / management and R & D / financial expense rates are 1.86%, 7.81% and 0.01%, respectively, and 0.51 pct, 1.36 pct and 0.02 pct, respectively; the loss rate of asset and credit impairment is 1.05%, 0.8 pct; the net interest rate of ownership is 10.86%, and 2.8pct is the same. The net cash outflow of the company's 2023Q1-3 operating activities is 228 million yuan, which is 138 million yuan less than that of the same period last year. The improvement of cash flow is to speed up the collection and settlement of the current period; the cash received is 3.51pct higher than that of 86.08%; the company's cash payment ratio is 110.18% lower than that of 110.18%. As of the end of June, the scale of the company's accounts receivable and bills, inventory + contract assets, accounts payable and bills, and accounts receivable + contract liabilities was 16.7 billion RMB 5.4pm respectively, representing a year-on-year change of 6.29%, 39.13%, 11.84%, 17.43%.
Accelerate the layout of the optical storage and charging business, the future benefits can be expected: 1) charging: the company's optical storage and charging energy stations in Changzhou area are under synchronous construction, and cash inflows will be formed for a long time in the later stage of the project, which will help to improve the company's future management quality. The company will actively join forces with local governments to promote the layout of charging station business. at present, the projects under construction are mainly concentrated in Changzhou and Nanjing. outside the province covers Hunan, Guangzhou, Anhui and other places; 2) in terms of energy storage: the company makes use of the advantages of its "Electric Energy Man" operation and maintenance platform to collect and monitor customers' energy storage and distribution system, and optimize customers' energy use by using energy storage, photovoltaic, peak cutting and valley filling. Investment in energy storage products can make up for the high cost of equipment in the company's traditional EPC business, and is expected to improve the company's operating quality and gross profit margin and customer advantage; 3) overseas business: the company's current overseas business owners go to sea with domestic customers, mainly power EPC, power equipment, etc., the development of energy storage products is also conducive to the company's future overseas business development.
Investment suggestion: the company's EPCOS business system is perfect and the ability to get customers is strong. As the company's optical storage and charging business continues to expand and energy storage business continues to increase, the company's future business is expected to continue to expand outside the province and overseas. And the company plans to buy back shares for equity incentives, the future development of the company can be expected. From 2023 to 2025, we expect the company to achieve operating income of 3.17 billion yuan and net profit of 3.71 million yuan and 569 million yuan per share, corresponding to PE of 17.04, 13.43 and 11.10 times, respectively, maintaining the "overweight" rating.
Risk hint: macroeconomic downside risks, infrastructure investment is lower than expected, overseas business promotion is not as expected.