23Q3 achieved net profit of 9.1 billion yuan, an increase of 25% over the previous year. 23Q1-Q3 achieved operating income of 44.77 billion yuan, an increase of 10% over the previous year; realized net profit of 29.01 billion yuan, an increase of 16% over the previous year; and realized net profit after deduction of 2.69 billion yuan, an increase of 26% over the previous year. Corresponding to 23Q3, the company achieved operating income of 14.85 billion yuan in a single quarter, an increase of 18% over the previous year, a decrease of 2% over the previous year; realized net profit of 9.1 billion yuan, an increase of 25% over the previous year, a decrease of 7% over the previous year; and realized net profit of 870 million yuan, an increase of 25% over the previous year and an increase of 1% over the previous year.
23Q3 The company's gross margin increased month-on-month, and the expense ratio increased slightly during the period. The gross profit margin of 23Q1-Q3 company was 17.4%, up 1.2pcts year on year; net profit margin was 6.9%, up 0.3 pcts year on year. In 23Q3, the company's gross profit margin for the single quarter was 17.3%, up 1.5pcts year on year and 0.3pcts month on month; net profit margin was 6.5%, up 0.5pcts year on year, down 0.3 pcts month on month. The 23Q1-Q3 company's period expense ratio was 10.9%, up 0.3 pcts year on year. Among them, sales/management/R&D and finance expense ratios were 2.4% (down 0.02 pcts year on year), 4.8% (up 0.03 pcts year on year), 3.8% (up 0.2 pcts year on year), and -0.1% (up 0.1 pcts year on year), respectively.
The output of 23Q1-Q3 power generation equipment also increased by 22%, and the growth rate of water turbines was higher. 23Q1-Q3's power generation equipment output was 31.3 GW, up 22% year on year, including: hydroturbine generator 23Q1-Q3 sales volume 4.2 GW, up 55% year on year; steam turbine generator 23Q1-Q3 sales volume 23.5 GW, up 19% year on year; wind turbine 23Q1-Q3 sales volume 3.6 GW, up 16% year on year; power plant turbine 23Q1-Q3 sales volume 22.4 GW, up 16% year on year; power plant boiler 23Q1-Q3 sales volume 18.2GW, up 7% year on year.
23Q3 signed new orders of 15.37 billion yuan, down 41% from the previous month. 23Q1-Q3 signed a new order of 642.2 billion yuan, an increase of 19% over the previous year. 23Q3 signed new orders of 15.37 billion yuan, down 10% year on year and 41% month on month.
With the exception of new orders signed by 23Q3 in the modern manufacturing service sector, which increased 19% month-on-month, new orders signed in all other sectors declined month-on-month. Among them, new orders for clean and efficient energy equipment were signed at 5.16 billion yuan, down 59% from the previous month; new orders for renewable energy equipment in 23Q3 were signed at 3.14 billion yuan, down 43% from the previous month.
Investment suggestions: Maintain the company's profit forecast. The company's net profit from 2023-2025 is expected to be 39.4/53.0/6.34 billion yuan, a year-on-year growth rate of 38%/34%/20%, diluted EPS is 1.26/1.69/2.02 yuan, corresponding to the dynamic PE of 2023-2025, 11.8/8.8/7.4 times, maintaining the “increase in holdings” rating.
Risk warning: risk of a sharp rise in raw material prices; risk of delayed order delivery or default; risk of downstream energy construction policy support falling short of expectations.