The company released its three-quarter report for 2023, and Q3 results are under pressure. The company's 2023Q1-Q3 realized operating income of 544 million yuan, an increase of 4.83% over the same period last year, a net profit of 186 million yuan, an increase of 15.49% over the same period last year, and a net profit of 179 million yuan, an increase of 11.30% over the same period last year. Among them, 23Q3 realized operating income of 212 million yuan in a single quarter, a decrease of 5.45% over the same period last year, a net profit of 77 million yuan, a decrease of 4.87% over the same period last year, and a net profit of 75 million yuan after deducting non-profit, a decrease of 6.34% over the same period last year.
Weather factors affect the power generation of Q3, and the income of electricity for the relief of power shortage declined slightly. The company's 2023Q3 photovoltaic revenue declined slightly compared with the same period last year, mainly due to: 1) due to the influence of rainy and typhoon weather, the equivalent hours of photovoltaic power generation decreased by 41 hours compared with the same period last year, and unit power generation decreased; 2) the phenomenon of power shortage was alleviated compared with the same period last year, power transaction profit and loss sharing was correspondingly reduced, and the price of photovoltaic electricity decreased, resulting in a year-on-year decline in 23Q3 comprehensive electricity revenue by 0.02 yuan / kWh.
The operation reduces the cost and increases the efficiency, and the expense rate goes down further. 2023Q1-Q3 's comprehensive gross profit margin is 58.90%, which is basically the same as the same period last year, and the net profit margin of sales is 34.17%, which increases 3.16pct compared with the same period last year, and its profitability continues to be optimized. In terms of expenses, the company's expense rate during the first three quarters of this year was 19.46%, which was lower than that of the same period last year. Among them, the financial expense rate was significantly optimized, with 9.46% in the first three quarters of this year, a decrease in 1.42pct compared with the same period last year. We expect that as the loans for the photovoltaic power plant project expire one after another, the company will still have room for a decline in financial expenses by means of low-interest replacement to drive down the stock and incremental loan interest rates.
The collection of convertible bonds has progressed smoothly, and the construction of power stations has been accelerated. On October 24, the company issued a convertible bond offering announcement that it intends to issue convertible corporate bonds to non-specific objects to raise no more than 880 million yuan, of which 616 million yuan is intended for distributed photovoltaic power station construction projects, the total scale of distributed photovoltaic projects involved 166.26MW, the implementation locations are located in Zhejiang, Jiangsu, Guangdong and other regions, the total number of projects is 55. The company expects that after all the projects reach production, the average annual income will be increased by about 90.9309 million yuan and the net profit will be increased by about 41.1126 million yuan.
[investment advice]
As the company was disturbed by unconventional factors in the third quarter, resulting in a slight decline in performance compared with the same period last year, we adjusted our profit forecast. It is estimated that the company's operating income in 2023-2025 will be 7.41 billion yuan (original value: 7.78 pound), and net profit will be 235,17,394 million yuan (original value: 253,327,406 million yuan). EPS is 0.47, 0.63 and 0.79 respectively, corresponding to the current price PE is 25-19-15 times, maintaining the "overweight" rating.
[risk Tip]
The construction of the company's power station is not as expected.
Disturbance of photovoltaic grid electricity price policy
Component price fluctuation and so on.