The company announced that it achieved revenue, net profit, and net profit of 37.52, 5.2, and 421 million yuan in 2023, an increase of 33.6%, 88.2%, and 105.7% year-on-year. Among them, Q4 revenue for a single quarter, net profit, and net profit of 11.37, 1.01, and 101 million yuan, increased 7.8%, 4.2%, and 49.7% year-on-year.
In Q1 2024, revenue was achieved, net profit, and non-net profit of $549, 0.55 million yuan, and 71 million yuan, an increase of -10.0%, -29.5%, and 29.3% year-on-year.
Analysis of the operating situation. In 2023, revenue was 3.752 billion yuan, up 33.6% year on year, and the comprehensive gross profit margin was 35.76%, up 5.46pct year on year. Thanks to the increase in the company's overall profit level, ROE increased sharply to 13.65%, an increase of 5.54 pct over the previous year. In 2024, Q1 achieved revenue, net profit, and deducted non-net profit of 549, 0.55 million yuan, and 171 million yuan, an increase of -10%, -29%, and 29% year-on-year, mainly due to fluctuations in shipments in Q1 New Energy and other businesses.
Shipments in the new energy business fluctuated in Q1, and overseas breakthroughs significantly increased profits. In Q1 2024, the new energy business revenue was 420 million yuan, down 12.2% year on year, mainly due to quarterly disturbances in NEV product shipments; the gross profit margin was 41.19%, up 13.25 pcts year on year. As the company's basic market, the wind power business has always been relatively steady; in terms of the photovoltaic business, the application of the company's single-tube parallel solution has further optimized costs and ranked first in the order volume of the five major and four small tenders. Currently, the business scale is comparable to wind power; the PCS energy storage business has benefited from the increase in downstream demand and has also reached a certain volume. In addition, the company actively explores overseas markets. Overseas revenue in Q1 2024 was 37 million yuan, up 5.7% year on year, and the share of overseas business increased to 6.7%. The increase in high-margin overseas revenue is an important reason for increasing the profitability of the company's new energy electronic control business.
The transmission business is expected to reach a new level. In Q1 2024, the company's engineering transmission business revenue was 62 million yuan, a year-on-year decrease of 28.99%, mainly due to the completion progress of downstream projects; the gross profit margin was 40.18%, a year-on-year decrease of 1.81 pcts. Based on the wind power converter platform foundation, the company launched various high-power inverter products, covering diverse needs such as smelting, petrochemicals, ports, heavy industry, rail transit, etc., and the company has significantly led the market share in major market segments, and has formed a good product image. Due to the predominance of the transmission business project system, there were large fluctuations in the early stages. As the company's coverage and business scale expand, this business segment may reach a new level.
The hydrogen business has potential for the future. The company has stocked 500 kW to 20 MW high-power IGBT hydrogen power supply products in the field of hydrogen energy, and has over 300,000 IGBT module system application support. It is the first domestic manufacturer of high-power MW IGBT hydrogen power supplies with stable operation over a long period of time. In July 2023, the company signed a joint venture agreement with industry leader Xi'an Longji Hydrogen Energy Technology Co., Ltd. to jointly invest, build and operate 5GW electrolyzer power supplies per year. The future hydrogen energy business is expected to gradually contribute.
Investment advice: The company has outstanding technology and product development capabilities. Focusing on high-power power electronics technology, it has successively cultivated a series of businesses such as wind power converters, large drives, photovoltaic inverters, energy storage, and hydrogen electrolyzer power supplies, and maintains leading competitiveness in the field of wind power and large transmission. Q1 The company's revenue is affected due to fluctuations in shipments in the new energy and other businesses, but the overall development path in the next few years is clear, and the capabilities are basic.
It is estimated that in 2024-2025, the company's net profit to mother will be 615 million yuan or 746 million yuan, corresponding to PE14X and 11X.
Maintain a “Highly Recommended” rating.
Risk warning: Demand for new energy sources falls short of expectations, the company's new business development falls short of expectations, risk of bad debts, etc.