Events:
The company released its three-quarter report in 2023, with revenue of 78.593 billion yuan in the first three quarters, + 1.70% year-on-year, and net profit of 1.412 billion yuan, + 9.77%, year-on-year. In the third quarter, the revenue was 24.02 billion yuan,-1.88% year-on-year,-6.34% month-on-month, and the net profit was 518 million yuan, + 12.95% year-on-year and + 34.38% month-on-month.
The company's performance is growing steadily, and its profitability continues to lead the industry.
In the first three quarters of 23, the company achieved a gross sales margin of 10.24%, an increase of 1.80pct over the same period last year, a net profit margin of 2.47%, and an increase of 0.16pct over the same period last year. In the third quarter of 23, it achieved a gross sales margin of 11.59%, an increase of 2.81pct and a month-on-month increase of 0.91pct; a net sales margin of 2.87%, an increase of 0.29pct and a month-on-month increase of 0.71pct. The company's performance is growing steadily and its profitability continues to lead the industry.
The amount of newly signed contracts has increased steadily, and on August 4, China's nuclear construction announced the signing of the civil engineering contract for the nuclear island of Unit 5 and Unit 6 of Fujian Ningde Nuclear Power Plant. On September 6, China Nuclear Construction and Hualong International signed a strategic cooperation agreement in Shanghai to help the nuclear power industry continue to upgrade. On September 26, the company announced that it had signed the construction contract for the installation of the nuclear island of Unit 1 and Unit 2 of the Xudapu Nuclear Power Station. As of September 23, the company has signed a total of 95.955 billion yuan in newly signed contracts, + 0.45% compared with the same period last year. The company has sufficient orders on hand, and the nuclear power business is expected to continue to grow.
Optimize business layout, new energy is expected to contribute to new growth points
In the first three quarters of 23, the installed scale of new energy in China maintained a trend of rapid development, and the new installed 172GW of renewable energy nationwide was + 93% compared with the same period last year, accounting for 76% of the new installed capacity. The cumulative installed capacity of renewable energy in the country is about 1384GW, + 20% compared with the same period last year, accounting for about 49.6% of the total installed capacity of energy in our country. The company actively responds to the national "3060" strategy, positioning new energy as one of the company's new engines, ploughing green and low-carbon businesses such as new energy, optimizing regional layout, and expanding key new energy projects at home and abroad, which is expected to contribute new growth points.
Earnings forecast, valuation and rating
We estimate that the company's revenue for 23-25 years will be 1161.04 yuan, 1348.79%, 154.78 billion yuan respectively, the year-on-year growth rate is 17.11% 16.17%, 14.31%, 20.57%, 27.163.364 billion yuan, 17.23%, 32.04%, 23.87%, 0.68, 0.90, 1.11 yuan per share, respectively, and the 3-year CAGR is 24.22%. The corresponding PE is respectively 10.2, 7.7 and 6.2 times. With reference to the comparable company's valuation, we give the company 9.5x PE in 24 years, with a target price of 8.55RMB, maintaining a "buy" rating.
Risk tips: cost control risk; project payback risk; project approval is lower than expected risk.