occurrences
On April 26, 2024, the company released the 2023 Annual Report and 2024 Quarterly Report. In 2023, we achieved revenue of 1,685 billion yuan, up 3.2% year on year; net profit loss to mother was 88 million yuan, down 143.0% year on year. 24Q1 achieved revenue of 124 million yuan, a year-on-year decrease of 75.2%; net profit to mother was 74 million yuan, a year-on-year decrease of 10.3%.
Comment:
Production capacity continued to expand, and depreciation growth reduced performance. By the end of 2023, the company had multiple production bases such as Haili Offshore, Haili Equipment, and Haiheng Equipment; Haili Wind Energy Base, Shandong Dongying Base, and Weihai Rushan Base had completed infrastructure construction at the end of 2023 and is expected to be put into production in 2024; at the same time, the first phase of the Jiangsu Qidong base is also expected to be put into operation in 2024; in addition, the Jiangsu Binhai base, Zhejiang Wenzhou base, and Guangdong Zhanjiang base are also under planning and construction. The depreciation of the company's fixed assets in 2023 was 89.73 million yuan, a significant increase from 48.08 million yuan in 2022. As of 2024Q1, the total fixed assets of the company were 1.41 billion yuan, a significant increase over 850 million yuan in 2022; the projects under construction were 500 million yuan, a significant increase over 190 million yuan in 2022.
Short-term performance is under pressure, and the long-term positive trend of ocean winds has not changed. In '23, the company's pile revenue was 1.10 billion yuan, with a gross profit margin of 10.32%; wind power tower revenue was 390 million yuan, with a gross profit margin of 3.52%. We believe it was mainly due to Jiangsu Haifeng's shipments falling short of expectations, and the recovery in industry demand may bring about greater flexibility in the company's performance.
The company focuses on offshore wind power, and conduit racks are sold. In 2023, the company sold a total of 9 sets of catheter racks, achieving revenue of 128 million yuan. The company's products have also moved from the “2.0 era” of “tower+pile foundation” to the “3.0 era” of “tower+pile base+conduit rack”, laying the foundation for the company's long-term development.
Profit forecast: We expect net profit to be $450 million and $770 million for 24 and 25, respectively. The closing market value as of April 29 was 24.0 and 14.0 times PE in 24-25.
Risk factors: risk of offshore wind power development falling short of expectations, risk of fluctuating raw material prices, risk of increased industry competition.