Incident: In 2023, the company achieved operating income of 406.032 billion yuan, up 10.82% year on year; net profit to mother of 7.986 billion yuan, up 2.07% year on year; net profit after deduction of 7.163 billion yuan, up 25.19% year on year. The reviews are as follows:
Q4 Revenue declined, profits improved, and revenue from engineering construction, industrial manufacturing, survey design and consulting increased steadily. By industry, the company's engineering construction, industrial manufacturing, investment and operation business, survey design and consulting, and other businesses achieved revenue of 3434.64, 337.32, 294.32, 191.87, and 9.616 billion yuan respectively, up 13.71%, 22.61%, -12.39%, 9.88%, and 16.56%, respectively. By region, domestic and overseas revenue reached 349.908 billion yuan and 56.124 billion yuan, respectively, an increase of 9.48% and 19.98%, respectively.
On a quarterly basis, the company's 2023Q1, Q2, Q3, and Q4 revenue increased 24.19%, 19.07%, 11.61%, and -3.12%, respectively. Net profit to mother increased 17.83%, -17.39%, -70.01% and 35.33%, respectively. Net profit after deducting net income to mother increased 22.12%, 44.93%, -50.10%, and 48.59%, respectively; net interest rates for the single quarter were 2.09%, 2.59%, 1.28%, and 4.58%, respectively.
Gross margin rose, depreciation increased, net interest rate declined, and net inflow of operating cash flow increased. In terms of gross margin, gross margin also increased by 0.22 pct to 12.64% in 2023. Among them, gross margins of surveying, design and consulting, engineering construction, industrial manufacturing, investment and operation, and other businesses increased by -2.11, 0.20, -0.77, 9.93, and -12.36 pcts, respectively. In terms of the period cost ratio, the cost rate for the 2023 period also increased by 0.13 pcts to 8.45%, of which the sales expense ratio increased by 0.01 pcts to 0.47%; the management cost ratio (including R&D expenses) increased by 0.24 pcts to 6.83%; and the financial expenses ratio decreased by 0.11 pcts to 1.15%. The total impairment of asset+credit was $3,233 million, an increase of $711 million over the previous year. In terms of net interest rate, net interest rate decreased by 0.07 pct to 2.77% in 2023. The net operating cash flow in 2023 was 9.486 billion yuan, and the inflow increased by 1,552 billion yuan; of these, revenue decreased 3.57 pcts to 88.27%, and current payments decreased 4.31 pcts to 84.77% compared to the same period.
New energy investment and construction accelerate development to improve and strengthen the new energy industry sector. The company closely revolves around “30? The “60” carbon peak carbon neutrality target has increased market development and resource investment in the new energy investment business, vigorously promoted the integration of “investment, construction and operation”, and improved and strengthened the new energy industry sector. In 2023, it obtained a new energy investment target of 2.097 million kilowatts, an increase of 23.75%, and added 4.749 million kilowatts of installed capacity of grid-connected Fengguang New Energy Holdings to vigorously promote the development of pumped energy storage business, with a total installed capacity of 15.9 million kilowatts. By the end of 2023, a total of 9.511 million kilowatts of new energy were connected to the grid, an increase of 90.72%, including 2.742 million kilowatts of wind power, an increase of 57.41%, 6.67 million kilowatts of solar energy, an increase of 120.79%, and 100,000 kilowatts of new energy storage.
Profit forecasting and ratings. The company is the leader in the entire energy and power industry chain. The development of new energy and new industries is accelerating, the rapid growth of orders provides support for future performance, and fixed growth matters are progressing smoothly. We expect the company's 24-25 EPS to be 0.21 yuan and 0.23 yuan, respectively, giving 2024 a price-earnings ratio of 13-15 times, and a reasonable value range of 2.73 to 3.15 yuan, maintaining the “superior to the market” rating. Risk warning. Downside investment risks, policy risks such as new energy sources, and the risk of rising raw materials prices.