9M23 returns to its mother's net profit and reverses losses compared with the same period last year.
9M23 achieved revenue of 512 million yuan, + 198.9% year-on-year; net profit of 25 million yuan, reversing losses over the same period last year, deducting non-11 million yuan, reversing losses year-on-year. We maintain our profit forecast and forecast that the company's EPS for 23-25 years will be 0.09 plus 0.29 plus 0.44 yuan respectively. Reference comparable company Wind consensus forecast under the 24-year average PE 28 times, give the company 24-year reasonable PE 28 times, corresponding to the target price of 8.13 yuan (the previous value 7.84 yuan), maintain the "overweight" rating.
The net profit of 3Q23 turned around compared with the same period last year, and the net interest rate increased compared with the previous month.
Company 9M23 revenue 512 million yuan, year-on-year + 198.9%; return to the mother net profit of 25 million yuan, year-on-year reversal of losses, deduction of non-11 million yuan, year-on-year reversal of losses. Corresponding to the 3Q23 company realized revenue of 259 million yuan, month-on-month ratio + 389.8% compared with 67.4%; return to the mother net profit of 21 million yuan, year-on-year turnaround, month-on-month ratio + 396.8%. 3Q23 achieves a gross profit margin of 22.12%, same / month ratio + 1.52pct + 1.78pct; net profit rate of 8.13%, same-month ratio + 33.45pct/5.78pct, and net profit rate increases compared with the same month-on-month ratio. We speculate that it is mainly due to the volume of the company's charging pile business, reflecting the scale effect. The expense rate during the period is from-15.38pct to 18.89% compared with the same period last year, including sales, management, R & D and financial expense rates compared with the same period last year, respectively-0.15pct,-13.89pct,-0.65pct,-0.69pct, mainly due to revenue year-on-year increase in diluted management expenses.
Cut into the charging pile business and benefit from the magnificent demeanor of the industry
The company acquired green energy technology in 2022 and cut into the new energy charging pile business. With the increase in the number of new energy vehicles, the demand for charging and the utilization rate of charging piles are improved, and the demand for market-oriented pile construction is increased, and the profitability of charging pile operation is expected to be improved. On the domestic side, the policy gives construction objectives and supporting auxiliary policies, while various localities issue planning objectives and corresponding subsidy policies to promote the construction of charging piles. The piles in foreign markets are relatively high, or enter a period of accelerated construction. The company has diversified customer structure, accelerated overseas layout, and has established cooperative relations with well-known customers at home and abroad, such as State Grid, Petrochina, Xiaocu charging, UK BP, Shell, etc., and is expected to benefit from the growth of the industry.
Technology and products to create long-term competitive advantage
The product matrix is rich, and the charging pile products achieve full power and multi-scene coverage, from low-power 7kW AC charging pile to 30kW, 60kW, 120kW, 180kW, 360kW high-power DC charging pile and 360kW, 480kW, 720kW, 960kW higher power DC charging stack, covering all downstream application scenarios. The company pioneered the star ring power distribution technology, using a modular structure, the power distribution unit can intelligently deploy the charging module according to the charging requirements, and each module can be switched on and off separately to improve the utilization rate of the equipment. In addition, the company also actively expand the energy storage microgrid business, is expected to achieve the coordinated development of optical storage and charging integration, and contribute to the performance increment of the company.
Risk hint: the growth of production and sales of new energy vehicles is not up to expectations, the shipment of charging piles is not as expected, and the intensified competition in the industry leads to a decline in profitability.