Key points of investment
Promote the implementation of the “Double Improvement of Quality and Return” action plan to highlight shareholders' sense of return.
On February 5, 2024, the company issued an announcement to promote the implementation of the “Double Improvement of Quality and Return” action plan. Specific measures include: 1) focusing on the main wind power industry to achieve high-quality enterprise development; 2) adhering to innovation-driven growth and becoming a future enterprise; 3) steady management and continuous stable cash dividends; 4) consolidating governance and improving the level of standardized operation; 5) improving information disclosure and adhering to investors' needs. The company has firmly established a sense of return to shareholders and continues to practice “improving both quality and return”.
Deeply involved in the wind power industry, machine manufacturing+wind farm development+wind power service three-wheel drive company is one of the earliest domestic enterprises to enter the field of wind power generation equipment. The company is deeply involved in the field of wind power generation. Currently, it has three main businesses: fan manufacturing, wind power services, and wind farm investment and development. In terms of wind turbine manufacturing, according to Wood Mackenzie's statistics, the company added 12.5 GW of wind power installed capacity in 2022, ranking first in the world, leading the world in sales and manufacturing of complete machines. In terms of wind farm operation, as of the end of the third quarter of 2023, the company has accumulated global equity of 7.26 GW of grid-connected installed capacity and 2.92 GW of wind farm capacity under construction. In terms of wind farm services, the company focuses on digital applications in unit operation and maintenance and wind farm operation and management. Using a nationwide operation and maintenance guarantee system, the company's wind farm asset management service scale had reached 15.88 GW by the end of the second quarter of 2023, and the company's post-service business had a project capacity of 29.60 GW.
Stable cash dividends and positive returns to investors
The company focuses on long-term and continuous returns and returns for investors. While achieving its own development, the company has adopted an active and stable cash dividend policy for many years. Since its listing, the company has distributed profits every year. Up to now, the cumulative amount of cash dividends has exceeded 10.5 billion yuan, and the cumulative dividend amount accounts for more than 30% of the cumulative net profit attributable to shareholders of listed companies. In 2023, the company's cash dividend was 0.12 yuan/share, with a dividend ratio of 1.81%.
Profit forecasting and valuation
The profit forecast was lowered and the “buy” rating was maintained. The company is a global fan leader, three-wheel drive for complete machine manufacturing+wind farm development+wind power service. Considering the decline in prices in the wind power industry, we lowered the company's net profit forecast for 23-25 to 26.50, 33.39, and 4.426 billion yuan (33.12, 41.73 billion yuan, and 5.529 billion yuan respectively before the reduction). The corresponding EPS was 0.63, 0.79, and 1.05 yuan/share, respectively, and the corresponding PE was 11, 9, and 7 times, respectively. Maintain a “buy” rating.
Risk warning: wind power installed demand falls short of expectations; raw material prices fluctuate; risk of product price fluctuations.