① Thanks to increased investment in the State Grid and the gradual fulfillment of current orders, the company expects net profit to nearly triple year-on-year in 2023. ② Domestic UHV investment is expected to increase year by year in 2024-2026.
Finance Association, January 29 (Reporter Liang Xiangcai) Thanks to increased investment in the State Grid and the gradual fulfillment of current orders, Pinggao Electric (600312.SH) expects net profit to nearly triple year-on-year in 2023.
This evening, Pinggao Electric announced that it expects net profit to be 815 million yuan in 2023, up about 284% year on year; it is estimated that net profit after deducting non-net profit in 2023 is about 770 million yuan, up about 285% year on year.
According to the 2023 three-quarter report, Pinggao Electric's net profit to mother was 552 million yuan. Based on this calculation, the company's net profit is expected to reach 263 million yuan in the fourth quarter of 2023, exceeding 212 million yuan for the whole of 2022.
Regarding the reason for the pre-increase in performance, Pinggao Electric mentioned in the announcement that with the acceleration of construction of new power systems, investment in power grids has been steadily increasing. Among them, the number of new contracts signed increased dramatically over the same period last year, and the company accelerated product iterative upgrading and promotion and application of new products and improved production efficiency.
A Finance Association reporter combed through Pinggao Electric's announcement and found that the company issued 7 bid announcements in 2023, winning a total of about 7.17 billion yuan in power grid equipment tenders, accounting for about 80% of total revenue in 2022.
In order to meet the growing demand for orders, Pinggao Electric has also expanded production capacity efficiency accordingly. The reporter learned from Pinggao Electric's research a few days ago, “The company is working on lean production to improve efficiency. Taking the 110KV and 220KV conventional product production lines as an example, production capacity efficiency has increased by 34%, and the overall production capacity can fully meet current order requirements.”
Demand for high voltage switchgear is closely related to power generation installations, power supplies, and power grid construction in the power industry. According to the latest data from the National Energy Administration, in 2023, the country's major power generation enterprises completed investment of 967.5 billion yuan in power supply projects, an increase of 30.1% over the previous year; power grid projects completed investment of 527.5 billion yuan, an increase of 5.4% over the previous year.
Furthermore, the State Grid revealed to the outside world this month that it will increase investment in power grids and speed up the construction of UHV and UHV backbone grids. The total investment scale for power grid construction is expected to exceed 500 billion yuan in 2024.
A research report from Guolian Securities this month mentioned that domestic UHV investment is expected to increase year by year in 2024-2026. Based on the current line investment amount that has been put into operation and planned, assuming a single conventional DC investment of 23 billion yuan and a single flexible DC investment amount of 27 billion yuan, it is estimated that in 2024-2026 UHV investment amounts will be 115.2 billion yuan, 125.1 billion yuan, and 138.1 billion yuan, respectively, with year-on-year increases of 55%, 9%, and 11%, respectively.
According to reports, Pinggao Electric is one of the top three domestic high voltage switchgear manufacturers. Its main business is high voltage switching business, distribution network switching business, domestic and foreign power engineering general contracting business, and switch product operation and maintenance business.