The company released its 2023 performance forecast. The company expects to achieve net profit of 354 million yuan, an increase of 696.70% year on year; it is expected to achieve non-net profit deducted from mother of 313 million yuan, an increase of 2270.60% year on year, exceeding market expectations.
There are plenty of orders in hand for the target benefiting from centralized power plant emissions. Demand for new installations was strong in the global photovoltaic centralized ground power plant market in 2023. The company led comprehensive advantages in the field of photovoltaic bracket system segmentation, and relied on a globally established marketing service network and efficient supply and delivery system, leading innovative capabilities, differentiated project solutions and product advantages, which enabled the company's photovoltaic stent product business to develop rapidly and achieve both growth in the company's revenue and net profit. The company's early strategic layout in the photovoltaic bracket industry gradually showed results during this reporting period, and orders also increased, effectively supporting the growth and sustainability of the company's main business. As of December 31, 2023, the company's current orders totaled about 4.7 billion yuan, including about 3.6 billion yuan for tracking systems, 1 billion yuan for fixed brackets, and about 100 million yuan for others. According to rough calculation, based on the price of a single tile of the fixed bracket is 0.5 yuan/W and the fixed bracket is 0.2 yuan/W, the company's tracking system has an order of about 7.2 GW, and the fixed bracket has an order of about 5 GW, and there are enough orders in hand.
The Saudi project has entered the delivery period, and demand for centralized power plants in emerging markets has been released to benefit the target. On January 3, CITIC's 1.3 GW AR RASS2 project and 408 MW Al Kahfah project in Saudi Arabia have entered the delivery period, which will provide a high quality guarantee for the energy transition in the Middle East region in the future. Since entering Saudi Arabia, CITIC has set up a localization team. It has perfect supply chain support in the region, which can fully meet the delivery needs of the project. As demand for photovoltaics in Asia, Africa, and Latin America is gradually stimulated in the low price range, demand from emerging markets is expected to be released. As a stent supplier deeply involved in emerging markets, CITIC is expected to benefit in 2024. At the same time, the company strives to develop the US market, and is expected to expand further in the future.
Investment advice: The company is expected to achieve net profit of 3.57/4.94/656 million yuan in 23-25 years, +703.5%/+38.3%/+32.8% year-on-year, and EPS of 2.63/3.64/4.83 yuan, respectively, maintaining a “buy” rating.
Risk warning: the company's market share reduces the risk, and the risk of rising prices of bulk raw materials