Description of the event
Jingke Energy released its 2023 annual report. In 2023, the company achieved revenue of 118.682 billion yuan, a year-on-year increase of 43.55%; net profit to mother of 7.404 billion yuan, an increase of 153.20%; of these, 2023Q4 achieved revenue of 33.585 billion yuan, an increase of 12.31%; and net profit to mother of 1,086 billion yuan, a year-on-year decrease of 13.97%.
Incident comments
The company's performance is at the pivotal level previously predicted. In 2023, the company shipped 83.56 GW of photovoltaic products, of which 78.52 GW of modules were shipped, ranking first in the industry. Type N accounted for about 62%. Among them, in 2023Q4, the company shipped 27.86GW of photovoltaic products, including 26.32GW of modules. In terms of profit, the company's gross margin of PV modules in 2023 was 14.43%. Among them, Q4 was affected by price fluctuations in the industry chain. The gross margin of PV module products was about 10%, and the profit after deducting a single watt was about 0.03-0.04 yuan/W.
The company's annual report is of excellent quality and has sufficient capital in hand. At the end of 2023, the company had 27.8 billion yuan in cash. Operating cash flow in 2023 was $24.8 billion, +507.62% year-on-year, of which Q4 reached 13.7 billion yuan, the highest level of cash flow in history. The company stabilizes cash dividends. It plans to distribute a cash dividend of 2.24 yuan (tax included) for every 10 shares to all shareholders, with a share including repurchase dividends of 34.06%.
Looking ahead, the company expects to ship 100-110GW of modules in 2024, of which the N-type ratio is close to 90%. As the pioneer of TopCon, JinkoEnergy has the smallest asset burden and is expected to be the first to fully transform into an N-type integrated enterprise. The share of US shipments is expected to increase further in 2024, contributing significantly to profits. The first phase of the Shanxi base was put into operation in March, and the second phase is expected to be put into operation in the first half of the year. The full automation line can greatly improve labor efficiency and operational turnover efficiency, and it is expected that operating costs will be further reduced after production is completed.
We expect the company to achieve net profit of 4 billion dollars in 2024, which is 19 times the corresponding PE.
Risk warning
1. Deterioration of the competitive landscape;
2. PV installation falls short of expectations.