The company released its 2023 annual report and 2024 quarterly report. The 2023/2024Q1 performance increased by 80.20%/5.98% year on year, respectively. The energy storage and charging pile business drove the company's revenue growth in the new energy sector rapidly, and the increase in sales scale helped reduce the company's expenses. Maintain an increase in holdings rating.
Key points to support ratings
The 2023 performance increased 80.20% year on year: the company released its 2023 annual report, achieving annual revenue of 2,651 billion yuan, an increase of 76.37%; realized net profit of 403 million yuan, an increase of 80.20% year on year; realized deducted non-net profit of 381 million yuan, an increase of 78.96% year on year. 2023Q4 achieved net profit of 130 million yuan, a year-on-year increase of 40.20% and a month-on-month increase of 41.55%.
2024Q1's performance increased 5.98% year on year: the company released its 2024 quarterly report, achieved revenue of 599 million yuan in 24Q1, an increase of 33.81% year on year; realized net profit to mother of 66.35 million yuan, an increase of 5.98% year on year. Among them, the charging and switching service achieved operating revenue of 231 million yuan, an increase of 48% over the previous year.
The company's new energy business revenue grew rapidly, and the profit of electric vehicle charging equipment was improving: in 2023, the company's new energy industry achieved operating revenue of 2,059 billion yuan, an increase of 119.05% over the previous year; achieved sales volume of 7.32 GW, an increase of 206.23% over the previous year. Among them, new energy conversion equipment achieved sales revenue of 910 million yuan, an increase of 255.65% year on year. Due to declining energy storage system costs and price competition, etc., gross margin fell 10.67 percentage points year on year to 33.13%; electric vehicle charging equipment achieved sales revenue of 850 million yuan, up 99.58% year on year, gross margin increased 4.32 percentage points year on year to 39.61%, and product structure changes led to an increase in gross margin.
The industrial supporting power supply and battery manufacturing and testing business has developed steadily: In 2023, the company's industrial power supply business achieved revenue of 533 million yuan, an increase of 4.07% over the previous year, and achieved 3.03 GW of shipments, an increase of 13.06% over the previous year; the battery manufacturing and testing business achieved revenue of 299 million yuan, an increase of 15.76% over the previous year. The above two businesses have followed the steady growth of the industry.
The increase in scale led to the dilution of the cost ratio: Along with the continuous increase in the company's sales scale, the company's expenses rate fell 3.25 percentage points year on year to 24.32% during the 2023 period. Among them, the company's sales/management/R&D/finance expenses decreased by 1.46/0.36/1.13/0.29 percentage points year on year, respectively, to 12.47%/3.55%/8.71%/-0.42%. Following the continuous increase in the company's revenue volume, there may be room for further decline in the cost ratio.
valuations
Under the current share capital, in line with the company's annual report and quarterly report revenue growth, we adjusted the company's 2024-2026 earnings forecast to 1.61/2.34/2.90 yuan (the original 2024-2026 dilution forecast was 1.48/2.21/- yuan), corresponding to a price-earnings ratio of 18.4/12.7/10.2 times; maintaining an increase in holdings rating.
The main risks faced by ratings
Energy storage policy development falls short of expectations; NEV industry policy falls short of expectations; price competition exceeds expectations; risk of international trade friction; risk of worsening industry competition pattern.