The company released the third quarterly report of 2023: revenue in the first three quarters of 2023 was 512 million yuan, 198.94% compared with the same period last year, and the net profit was 25 million yuan, reversing losses compared with the same period last year; in a single quarter, 23Q3 realized revenue of 259 million yuan, + 389.81% compared with the same period last year, and realized net profit of 21 million yuan.

Revenue side: the company achieved revenue of 512 million yuan in the first three quarters of 23 years, + 198.94% compared with the same period last year; of which, 23Q3 realized revenue of 259 million yuan, + 389.81% compared with the same period last year, and + 67.44% compared with the same period last year.

Profit side: the company made a net profit of 25 million yuan in the first three quarters of 23 years, reversing losses compared with the same period last year, with a gross profit margin of 23.39%, an increase of 2.77 pct over the same period last year; of which 2023Q3 achieved a net profit of 21 million yuan and a gross profit margin of 22.12%, increasing 1.52pct over the same period last year. With the gradual emergence of economies of scale, we believe that there is still a lot of room for improvement in the company's gross margin.

Cost side: the company's sales / management / R & D / financial rates for the first three quarters of 23 were 9.54% 5.57% 3.55% 0.22%, respectively, compared with the same period last year.

-0.15/-13.89/-0.66/-0.69pct.

Industry β: by September 2023, the cumulative number of charging infrastructure in the country was 7.642 million, an increase of 70.3% over the same period last year, and the prosperity of the industry was high. From January to September 2023, the increment of charging infrastructure is 2.432 million units, the sales of new energy vehicles is 6.278 million units, and the incremental vehicle-to-pile ratio is 2.6 1, which is still more room for improvement than the ideal vehicle-to-pile ratio at 1:1, and the industry is expected to maintain high growth.

Company α: the company reported outstanding performance in the three quarters of 2023, with a high year-on-year increase and quarter-by-quarter acceleration. We expect that with the further increase in the sales scale of charging piles, the continued increase in the proportion of high-power charging stacks and the accelerated expansion of the overseas charging pile market, the company's profitability is expected to continue to rise.

Investment advice: the company acquires green energy technology and strips off its traditional business to accelerate its transformation into a charging pile giant. Taking into account that the company's 23Q3 revenue exceeded our expectations, we raised the company's revenue forecast for 23-25 to 10752266max $38.99 million (the previous value is 783x1575pm 2.833 billion yuan), and the homing net profit was 0.63pm 233max 489 million yuan (the previous value was 0.53,1.76 and 442 million yuan). Company equity incentive guidelines 23-25 CAGR is still as high as 88%, the accelerated clearance of traditional business is expected to enjoy higher performance flexibility than other companies, the current stock price corresponds to 24 to 25 years of 21/10xPE, maintaining the "buy" rating.

Risk hints: acquisition integration risk, market risk, charging pile and energy storage business going out to sea less than expected, uncertain risks in the implementation stage of non-public offering, etc.