Event: the company released its Triple report for 2023. In the first three quarters of 2023, the company realized revenue of 512 million yuan, + 198.94% compared with the same period last year, realized net profit of 24.92 million yuan, reversed losses over the same period last year, and deducted 10.96 million yuan of non-return net profit, reversing losses over the same period last year. Among them, 2023Q3 achieved a revenue of 259 million yuan, with a month-on-month ratio of + 390%, a net profit of 21.32 million yuan, a year-on-year reversal of loss, a month-on-month ratio of + 397%, a deduction of 9.35 million yuan of non-net profit, a year-on-year reversal of losses, a gross profit margin of 22.12% for sales of 23Q3, a gross profit margin of 22.12% for sales of + 1.52 CPT, and a net profit rate of 8.13% for sales compared with + 1.52% plus 33.45/+5.78pcts. Performance is in line with market expectations.

The business of charging pile has increased rapidly, and the performance has been released quickly. According to the data of the charging Alliance, the increment of domestic charging infrastructure in the first three quarters of 2023 was 2.432 million, of which the increment of public charging piles was 664000. As of September 2023, the total number of charging facilities nationwide reached 7.642 million, a year-on-year increase of + 70.3%.

We estimate that the total revenue of charging piles in the first three quarters of company 23 amounts to 480 million yuan, accounting for more than 90% of the company's total revenue, and the energy storage business accounts for a relatively small proportion. With the increase of storage projects in charging stations, it is expected to gradually increase the volume. We estimate that the income of the 2023Q3 charging pile business is about 250 million yuan, which is more than 70% month-on-month, and the gross profit margin of the charging pile business has risen steadily to more than 30%. We estimate that the company's annual charging pile business income in 2023 will reach more than 800 million yuan, and the annual gross profit margin will be maintained at more than 30%.

The charging stack has gradually become the mainstream scheme in the field of public charging, and the winning Petrochina Company Limited 500 million project shows its technical advantages.

With the batch application of 4C overcharge battery in electric vehicles and the increasing demand for overcharge downstream, the charging stack scheme has gradually become the mainstream solution in the field of public charging. We estimate that the company's charging stack revenue accounts for nearly 60% of the total revenue, and the latest 960KW charging stack products have been shipped in bulk. 23Q3 Petrochina Company Limited 500 million charging equipment bidding, the company stands out among many charging pile companies, successfully shortlisted, highlighting the hard strength of the products. As the company's bid-winning projects are delivered one after another, the performance is expected to grow rapidly.

Investment suggestion: considering the high downstream demand for the company's products, we expect the company to achieve a return net profit of RMB 0.63max in 2023-2025, with a year-on-year turnround / + 205.9% bonus 68.8%, corresponding to an EPS of 0.09max 0.29max RMB 0.49, maintaining a "buy" rating.

Risk tips: downstream demand is lower than expected; overseas market expansion is not as expected; industry competition is intensified.