2023 年新增订单865.32 亿元，同比增长32%。其中：可再生能源201 亿，yoy+13%，清洁高效能源装备341 亿，yoy+57%，新兴成长产业114 亿，yoy+19%，工程及服务117 亿，yoy+37%，现代服务业92 亿，yoy+15%。Key points of investment:
Incident: The company released its 2023 annual report. The company achieved total revenue of 60.677 billion yuan, yoy +9.60%; net profit to mother of 3,550 billion yuan, yoy +24.23%, and dividend of 0.475 yuan per share. The company's performance was in line with expectations.
Thermal power, nuclear power, gas power and power plant services are growing rapidly, and other income and investment income also contribute greatly to profits. In 2023, the company achieved revenue of 13.9 billion yuan, yoy +29%, nuclear power achieved revenue of 2.9 billion yuan, yoy +41%, gas revenue of 3.8 billion yuan, yoy +107%, and power plant services achieved revenue of 3.8 billion yuan, yoy +49%. In addition, other income (mainly due to the addition of value-added tax deduction of 185 million yuan for advanced manufacturing enterprises) and investment income (mainly an increase of 370 million yuan in disposal of long-term equity) increased by a total of 550 million yuan, which also contributed greatly to profit growth.
In 2023, orders were added to $86.532 billion, up 32% year over year. Among them: Renewable energy is 201 billion, yoy +13%, clean and efficient energy equipment 34.1 billion, yoy +57%, emerging growth industries 11.4 billion, yoy +19%, engineering and services 11.7 billion, yoy +37%, modern service industry 9.2 billion, yoy +15%.
Power supply equipment and power plant services: The boom continues, and the company's competitiveness continues to lead. The China Electric Power Enterprise Federation predicts that in 2024, the country's new installed power generation capacity will once again exceed 300 million kilowatts. Coal and electricity: The company's market share is leading, and orders for complete furnace mechanical and electrical projects increased by more than 100% year-on-year. Hydropower: Impact units, hybrid savings, and variable speed pumping have achieved market breakthroughs. Gas and electricity: Maintaining the highest market share, the first self-developed domestic G50 gas engine demonstration project was successfully put into operation. Nuclear power: Acquired new reactor prototype development projects such as lead-bismuth reactors and cryogenic reactors. Wind power: The annual installed equipment industry ranking increased. Solar power generation: Received orders for photothermal power generation projects, multi-energy coupling molten salt storage tanks and evaporator systems. Furthermore, the company's waste heat and pressure turbine units are technologically advanced.
Emerging industries: hydrogen energy and new energy storage are growing rapidly. In 2023, the company won a gas pipeline electric compressor package project, won the bid for 70 hydrogen energy logistics vehicle demonstration projects, maintained the lead in the hydrogen fuel cell power generation system, and won the bid for the largest commercial green electricity generation hydrogen storage and power generation project in China (construction of a 10MW grade hydrogen storage power supply station in an industrial park in Dujiangyan). At the same time, the company actively seeks landscape resource indicators to promote business model innovation.
The majority shareholders plan to increase their holdings by 150 to 300 million yuan, and increase their holdings by no more than 1% of the company's total share capital. On December 8, 2023, the company announced that Dongfang Electric Group, the majority shareholder of the company, launched a market-based increase plan. It plans to further increase its holdings within the next 12 months, with an increase of about 150-300 million yuan. The number of additional shares will not exceed 1% of the company's total share capital (including the shares already increased this time).
Investment analysis opinion: Considering that the growth rate of the company's new industry was lower than expected, we lowered the company's net profit to mother in 2024-25 to 40.74 billion yuan (53.1 billion yuan or 6.14 billion yuan before the reduction), and added net profit to mother in 2026 to 5.921 billion yuan respectively. The current stock price corresponds to PE 12, 10, and 8 times, respectively. Considering that the company's 2024-26 net profit CAGR reached 21%, and we maintained a “buy” rating.
Risk warning: The progress of various power construction falls short of expectations; the development of emerging industries falls short of expectations.