Turned a loss into a profit, and net revenue and profit increased higher month-on-month

The company released its three-quarter report for 2023. The first three quarters of 2023 achieved revenue of 512 million yuan, +198.94% year-on-year, net profit of 225 million yuan, net profit of 25 million yuan, and net profit of 11 million yuan after deducting non-treasury net profit, reversal of losses over the previous year. Among them, 2023Q3 achieved revenue of 259 million yuan, +389.81% year-on-year, +67.44% month-on-month, net profit of 121 million yuan, +265.36% year-on-year, +396.76% month-on-month, and net profit of 0.09 billion yuan after deducting non-return net profit of 0.9 billion yuan, +170.99% year-on-year, and +143.49% month-on-month. Due to the good repayment, the 2023Q3 company transferred the receivables and contracted asset impairment in preparation for 9.96 million yuan. Considering that the company's railway business has not been divested, we lowered the company's 2023-2025 net profit forecast to 0.6, 190, 360 million yuan (previously 1.0, 3.1, 5.1 billion yuan), EPS to 0.09, 0.29, and 0.55 yuan/share, corresponding to the current stock price PE of 81.2, 26.3, 13.9 times. The company's charging pile products have brand competitiveness and are expected to fully benefit the development of the charging pile industry and maintain the “buy” rating.

The net interest rate of 2023Q3 companies increased significantly month-on-month

The overall gross margin and net profit margin of 2023Q3 company were 22.12% and 8.13% respectively, -1.78/+5.78 pct, respectively, and the net profit margin increased significantly. The sales/management/R&D/finance expense ratio was 7.77%/3.99%/2.73%/0.16%, respectively, -1.13/ -3.35/ -1.89/+0.09pct.

New charging equipment production lines have been put into operation one after another to guarantee future production capacity. The company originally had 8 charging equipment production lines, with an annual design capacity of about 800 million yuan. The R&D and production base in Fengdong, Shaanxi was completed and put into operation in July 2023. It is planned to build 14 charging product lines, 7 have been put into production by the end of September, and 7 PACK and energy storage product lines are planned to be built. Among them, the charging product line includes AC charging product line, low power DC charging product line, and high power DC charging product line; energy storage product line includes PACK production line, distributed energy storage production line, and household energy storage production line. After the project is fully put into operation, it is estimated that the annual output value will reach 2.8 billion dollars.

Winning the bid for CNPC's charging equipment procurement project shows brand competitiveness. The company has a complete range of charging equipment products, rich sales channels, many strategic customers, and a strong bid for CNPC's charging equipment procurement project, demonstrating brand competitiveness.

Risk warning: Competition in the charging pile industry is intensifying, and overseas travel is falling short of expectations.