Core views
The company released its 2023 three-quarter report. Q3 achieved revenue of 14.851 billion yuan in a single quarter, an increase of 17.51% over the previous year, and net profit of 9.1 billion yuan, an increase of 25.32% over the previous year. In 2023Q3, the company's gross profit margin was 17.35%, down 0.3 pct year on year, up 1.53 pct month on month; net profit margin was 6.49%, down 0.31 pct year on year, up 0.46 pct month on month, and profitability remained basically stable over the same period last month. In the first three quarters of 2023, the company added new effective orders of RMB 64,224 billion, an increase of 19% over the previous year, of which clean and efficient energy equipment accounted for 40.72%, renewable energy equipment accounted for 22.88%, engineering and trade accounted for 11.91%, modern manufacturing services accounted for 11.54%, and emerging growth industries accounted for 12.96%.
occurrences
The company released its 2023 three-quarter report. In the first three quarters, it achieved operating income of 43.921 billion yuan, a year-on-year increase of 10.74%, net profit of 2,912 billion yuan, an increase of 16.47% over the previous year; Q3 achieved operating income of 14.851 billion yuan, an increase of 17.51% year-on-year, and net profit of 9.1 billion yuan, a year-on-year increase of 25.32%.
Brief review
The performance was in line with expectations. The Q3 revenue growth rate returned to normal, and the net profit growth rate was higher than the revenue growth rate. Q3 In the single quarter, the company achieved operating income of 14.851 billion yuan, an increase of 17.51% year on year, and net profit of 9.1 billion yuan, an increase of 25.32% over the previous year. The net profit growth rate was faster than the revenue growth rate, and the advantages of scale continued to be reflected. It is expected that the scale effect will continue in the future.
The company's revenue growth rate for Q3 in a single quarter was 17.51%, which matched the year-on-year growth rate of orders in 2020-2022 (23%, 14%, 16%), and the Q3 revenue growth rate matched the previous order growth rate.
Q3 The gross profit margin and net profit margin remained stable over the same period, and the cost ratio increased slightly over the period.
The gross profit margin of 2023Q3 company was 17.35%, up 1.53 pct year on year, down 0.3 pct month on month; net profit margin was 6.49%, up 0.46 pct year on year and down 0.31 pct month on month. Profitability remained basically stable over the same period.
Q3 The company's cost rate for the period was 12.42%, an increase of 1.9 pct over the previous year and an increase of 2.32 pct over the previous year, mainly due to the increase in management expenses and R&D expenses.
New orders in the first three quarters increased 19% year over year. In the first three quarters of 2023, the company added new effective orders of RMB 64,224 billion, an increase of 19% over the previous year, of which clean and efficient energy equipment accounted for 40.72%, renewable energy equipment accounted for 22.88%, engineering and trade accounted for 11.91%, modern manufacturing services accounted for 11.54%, and emerging growth industries accounted for 12.96%.
Looking at a single quarter, the company added 15.4 billion yuan in orders in Q3 in a single quarter, down 10.5% year on year and 41% month on month. The third quarter is usually a low season for the company's new orders.
Profit forecast and valuation: We expect the company to achieve operating income of 659.5, 745.1, and 83.2 billion yuan in 2023, 2024, and 2025 respectively, and net profit of 37.26, 45.38, and 5.60 billion yuan, corresponding to PE of 12.5, 10.3, and 9.2X respectively.
Risk warning
The completed amount of power infrastructure investment fell short of expectations: the company is mainly engaged in power equipment, and its performance is highly correlated with the investment amount of wind power, gas power, thermal power, hydropower, and nuclear power. If the completed amount of power investment falls short of expectations, it will affect the company's performance; prices of upstream raw materials fluctuate greatly: price fluctuations such as upstream steel will affect the company's performance; downstream electricity demand falls short of expectations: power investment is related to electricity demand. If demand for electricity is weak, it will affect investment in new power supplies, which in turn affects the company's performance;
The progress of production expansion falls short of expectations: the company's current production capacity is still insufficient. If the expansion falls short of expectations, it will affect the company's external sales volume; there is a risk of macroeconomic fluctuations.