The company announced that it achieved revenue, net profit, and net profit of 5.751, 6.27, and 623 million yuan in 2023, an increase of 13.2%, 15.5%, and 17.8% year-on-year. Among them, Q4 revenue for a single quarter, net profit, and net profit of 15.14, 1.06, and 105 million yuan, increased 2.4%, 1.1% year-on-year.
The performance was in line with expectations, and the quality of the reports was healthy. In 2023, the company's various businesses grew steadily, achieving revenue of 5.751 billion yuan, a year-on-year increase of 13.24%, a gross profit margin of 34.44%, a year-on-year increase of about 2.3 pcts, and an expense ratio of 21.6%. Among them, the R&D expenditure ratio increased by 1 pcts to 9.4%, maintaining a high proportion, and the net interest rate increased slightly to 10.9%. The company continued to optimize repayment management during the reporting period, and the number of accounts receivable turnover continued to decline. The net operating cash flow in 2023 was 1.23 billion yuan, an increase of 73.6% over the previous year. At the end of the period, the company had cash in hand of 3.12 billion yuan, accounting for 32.8% of total assets, and no short-term or long-term loans.
The power grid automation business continues to grow. The company's power grid automation business achieved revenue of 2.92 billion yuan (corresponding to the company's power transmission+distribution business segment), an increase of 11% over the previous year, and the gross margin increased by 2 pcts to 41.9%. The company maintained its leading position in the field of two networks, won bids for typical digital power plants such as Inner Mongolia and the Southern Grid, and next-generation centralized control stations, etc., and maintained its advantage in the direction of digitalization and intelligence. The distribution side achieved steady growth in contract amounts for primary and secondary integration equipment, optimized overall order quality, and improved gross margin. In 2024, the company will further strengthen its layout in provincial grid and other markets, and it is expected that the company's power grid automation business will progress steadily.
The power generation and electricity consumption side business continues to expand and actively cultivate new growth points. The power plant and industrial automation business achieved revenue of 2.49 billion yuan (corresponding to power generation side, factory automation, etc.), an increase of 11.6% over the previous year, and gross margin increased 2.77 pcts to 27.5%. Among them, the new energy business is still an important driver for the company. During the reporting period, it won bids for projects such as Kubuqi Grand Base and Yalong River Water and Light Complementarity, maintaining its competitive advantage in renewable energy secondary equipment. At the same time, in addition to scenarios related to new energy sources such as photovoltaics and wind power, revenue from traditional power projects benefits from the construction of thermal power and hydropower projects, driving an increase in overall gross margin. Furthermore, based on its deep accumulation in the fields of power systems and power electronics, the company is actively expanding into new directions, and businesses such as flexible transmission and distribution and hydrogen power generation are expected to gradually contribute to the increase.
Investment advice: The company's traditional business has grown steadily, and the new energy support and energy storage business has accelerated in recent years, and contributions have increased. It is predicted that the company will achieve net profit of 730 million in 2024, maintaining a highly recommended rating.
Risk warning: Policy adjustments are risky, new business expansion falls short of expectations, and power grid investment falls short of expectations.