Brief performance review
On March 28, 2024, the company disclosed its annual report. In 2023, it achieved revenue of 50.457 billion yuan, an increase of 8.66% over the previous year, and realized net profit of 1,331 billion yuan, a year-on-year decrease of 44.16%.
Among them, Q4 achieved revenue of 21.138 billion yuan, an increase of 4.26% over the previous year, and realized net profit of 70 million yuan, an increase of 277.61% over the previous year.
Management analysis
It has been ranked number one in China for 13 consecutive years, and the share of large fans continues to rise: in 2023, the company's wind turbine and parts business revenue was 32.937 billion yuan, and foreign sales were 13.77 GW, which was basically the same as the previous year. The company's share of large fan shipments continued to increase. Sales of units below 4MW fell 91.93% year on year, 4MW (inclusive) -6MW units accounted for more than 50%, and sales of 6MW and above units increased 29.36% year on year. According to Bloomberg New Energy's financial statistics, in 2023, the company's new domestic wind power installed capacity reached 15.67 GW, accounting for 20% of the domestic market share, ranking first in the country for 13 consecutive years.
Ongoing orders are plentiful and growing steadily: By the end of 2023, the company's on-hand orders totaled 30.4 GW, an increase of 12.13% over the previous year. Of these, the total number of external orders is 29.8 GW (4.7 GW for overseas orders), including 20.7 GW for external orders to be executed and 9.1 GW for orders that have not been signed; and 617.40 MW for internal orders.
The scale of projects under construction and approved increased year-on-year: the company's wind power project achieved power generation revenue of 6.431 billion yuan, and investment income from the transfer of shares in wind farm projects was 1,724 billion yuan, an increase of 54.07% over the previous year. The company added 1.79 GW (1.74 GW in '22) to the grid and transferred 822 MW (685 MW in '22), for a total of 7.29 GW. The equity capacity under construction was 2.3 GW, a year-on-year decrease of 11%. The approved project plan was to install 6.29 GW, an increase of 60% over the previous year.
Profit Forecasts, Valuations, and Ratings
According to the orders in progress and the scale of projects under construction disclosed in the company's annual report, we adjusted the company's net profit forecast for 2024/2025 to 25.58 (-25%) and 28.31 (-31%) billion yuan, and forecast net profit for 2026 to be $3.22 billion. Currently, the company's market value corresponds to 2024 PE at 12x, maintaining the “increase” rating.
Risk warning
Policy risk, market competition risk, economic environment and exchange rate fluctuation risk, asset and credit impairment risk.