Incidents:
The company issued a positive profit announcement. The net profit for the full year of 2023 is expected to be 550 million yuan, a sharp increase of 456% over the previous year. The reason for the sharp increase in the company's performance is that vigorous market development has achieved positive results, and revenue has increased markedly. At the same time, the transfer of 51% of Harbin Electric Power Equipment Company's shares has formed a certain return on investment.
Comments and opinions:
1. As a leader in energy equipment, the company's main business orders have grown rapidly in '23:
The company is the earliest research and manufacturing base for power generation equipment built in China and an important state-owned key enterprise. Among the equipment produced, large hydroelectric power units account for one-half of the total domestic installed capacity, and thermal power, nuclear power main equipment, and heavy gas turbines all account for one-third of the total domestic installed capacity. In the first half of 2023, the company signed a new contract amount of 32.59 billion yuan, an increase of 110% over the previous year. Orders included 11.63 billion yuan for thermal power equipment, 3.82 billion yuan for hydropower equipment, and 2.55 billion yuan for nuclear power equipment, up 188%, 438% and 1830% year-on-year respectively. This time, Yingxi expects the company's revenue and order growth to maintain a good trend in 23 years, and new orders for the main business will drive the company's revenue growth.
2. Social demand for electricity continues to grow, and demand in the power equipment industry is rising:
According to the National Energy Administration, in 2023, the country's social electricity consumption was 9224.1 billion kilowatt-hours, up 6.7% year on year; the country's cumulative installed power generation capacity was 2.92 billion kilowatts, up 13.9% year on year. Among them, thermal power installed capacity increased 4.1% year on year and hydropower installed increased 1.8% year on year. In the context of economic development, demand for electricity and power generation equipment will continue to grow. For some time to come, thermal power equipment will be used as the ballast stone for national electricity, and pumped energy storage construction will be used as a regulated power source under the new green power system. It is expected that they will maintain a stable construction and development trend, and the company is expected to benefit as a leading equipment manufacturer in the above industries.
3. The market value management of central enterprises will be included in the assessment of enterprise leaders, and the company is expected to increase its valuation:
On January 24, a spokesman for the State Council's State-owned Assets Administration Commission stated that further research will be carried out to include market value management in the performance assessment of central enterprise heads. Guide central enterprise leaders to pay more attention to the market performance of listed companies they control to better return investors. As a core enterprise in an important industry in the country, the company's valuation is expected to increase.
4. Investment advice
As a high-quality state-owned enterprise, Yingxi's profits have increased dramatically, so it is recommended to pay attention.