Focus on the field of enterprise microgrids and continue to upgrade products
The company focuses on the field of enterprise microgrids, focusing on enterprise microgrid energy efficiency management systems to provide users with solutions in various aspects such as intelligent power operation and maintenance, energy efficiency analysis, and electrical safety. The company's products include enterprise microgrid energy efficiency management systems, products and power sensors, etc., from power sensors, power measurement, control and protection devices to edge computing gateways and cloud platforms, forming a complete “cloud-edge-end” product ecosystem.
The company's products mainly focus on the five aspects of reliable power supply, energy efficiency management, safe use of electricity, operation and orderly use of electricity. At present, it has completed three product upgrade stages. One is the development of hardware (including embedded software) to the EMS 1.0 stage; the second is the development of EMS 1.0 to the EMS 2.0 stage; and the third is the development of EMS 2.0 to the EMS 3.0 stage. EMS 3.0 has completed the product development architecture, and functions are gradually being improved.
Steady growth in performance and sufficient intended orders
With 2023Q1-Q3, the company achieved operating income of 875 million yuan, an increase of 13.26% over the previous year, and realized net profit of 174 million yuan, an increase of 25.52% over the previous year. Based on the company's median 2023 performance forecast, the company is expected to achieve net profit of 209 million yuan for the full year of 2023, an increase of 22.5% over the previous year, and steady growth in performance.
The company continues to accelerate the promotion of EMS 2.0. At the same time, EMS 3.0 has also completed more than 10 test projects. Taking the company's Jiangyin plant as an example, its EMS 3.0 system includes access to new energy equipment and systems such as photovoltaics, charging piles, and energy storage, to achieve intelligent operation of source network load storage and charging, and now has certain implementation capabilities.
On September 30, 2023, the total number of reserve projects in the company's filing system was about 501,000, with an average output value of about 150,000 yuan for each project. The total potential order amount for the filing project was 75-80 billion yuan, and there were sufficient reserves for customer and intended orders.
Overseas markets are growing rapidly, opening up room for growth
Currently, the company is promoting overseas business in an orderly manner, mainly in Southeast Asia, Europe, the Middle East, Africa, North America, etc., and is cultivating business teams with Singapore as the center. Overseas markets achieved sales revenue of 3.3733 million yuan in 2021, sales revenue of 14.517,300 yuan in 2022, and sales revenue of 40 to 50 million yuan in 2023. The company expects to increase by no less than 50% each year, and achieve 250 million yuan in sales in 2027, opening up room for growth for the company.
Profit forecasting
We are optimistic that the company's overseas business will continue to expand. We predict that the company's revenue for 2023-2025 will be 1.99 billion yuan, 1.47 billion yuan, and 1.83 billion yuan respectively, EPS will be 1.01, 1.31, and 1.65 yuan respectively (the impact of the increase has not yet been taken into account). The current stock price corresponds to PE at 21, 16, and 13 times, respectively, maintaining a “buy” investment rating.
Risk warning
The progress of electricity reform fell short of expectations, progress in additional generation fell short of expectations, systemic risks in the general market, overseas business expansion fell short of expectations, etc.