Core views
2023Q3 achieved operating income of 259 million yuan, +67.4% month-on-month; net profit of 221 million yuan, +396.8% month-on-month; and a net profit margin of 8.2%, +5.4pct month-on-month. Among them, the charging pile business has benefited from strong downstream demand and maintained rapid growth, accounting for more than 90% of revenue, stable gross margin over month, and reduced costs and improved profitability due to scale effects. The energy storage business currently accounts for a relatively small share of revenue and is in the energy reserve stage. The products are mainly used in medium and low voltage distribution networks, industrial and commercial, microgrids, and the user side.
occurrences
The company released its three-quarter report for 2023.
In the first three quarters of 2023, the company achieved operating income of 512 million yuan, +198.9%; net profit of 225 million yuan, turning a profit from net profit of 25 million yuan; net profit of 11 million yuan after deduction, turning a loss into a profit; and gross profit margin of 23.4%, +2.8pct year on year.
Among them, 2023Q3 achieved operating income of 259 million yuan, +389.8% yoy, +67.4%; net profit of 221 million yuan, which turned a loss into a profit, +396.8%; net profit after deduction of 0.09 billion yuan, which turned a loss into a profit, +143.6% over the previous year; and a gross profit margin of +22.1%, +1.5, and -1.8 pct month-on-month.
Brief review
Charging pile business: Benefiting from strong downstream demand, achieving rapid growth.
On the industry side, the number of domestic charging infrastructures has maintained rapid growth. From January to September 2023, the domestic charging infrastructure increased by 2,432 million units, +30% year-on-year, of which the number of public charging stations increased by 664,000 units by +36%; as of September 2023, the number of charging infrastructure in the country reached 7.642 million units, +70% year-on-year.
In terms of revenue and profit, the Q3 company's charging stations are expected to account for more than 90% of revenue, and the gross margin remains stable month-on-month. Benefiting from cost dilution and improved profitability due to scale effects, the Q3 company's expense ratio was 14.6%, -6.3pct month-on-month, and net profit margin 8.2%, +5.4pct month-on-month.
In terms of customers, the company has rich customer resources, including State Grid, BP (British Petroleum), Shell, Xiaoju Charging, Yanchang Petroleum, CNPC, Sinopec, China Construction Science and Engineering, China Power Investment, China Power Investment, Taiyuan Longtou, Sichuan Energy Investment, Chengdu Transportation, and Xixian City Investment Group.
In terms of overseas travel, the company continues to promote overseas certification and market development. Overseas markets mainly target European and Southeast Asian markets, and are also actively expanding markets in regions and countries such as the Middle East, Australia, and Japan. Currently, some products have passed EU CE certification, and there are also some orders from the European market.
Energy storage business: Product reserves have been completed, and the volume is worth looking forward to.
In terms of energy storage, it is still in the early energy reserve stage, and energy storage products account for a relatively small share of revenue. At present, the company has launched some energy storage products, including 30kW/64kWh and 107kW/215kWh energy storage systems, which are mainly used in medium and low voltage distribution networks, industrial, commercial and microgrids, and the user side.
It is estimated that in 2023 and 24, the company's net profit will return to the mother of 0.65 million yuan or 168 million yuan, corresponding to 74 and 29 times PE, maintaining the “increase in holdings” rating.