JinkoEnergy released its 2023 Annual Report and 2024 Quarterly Report. In 2023, the company achieved total revenue of 118.682 billion yuan, up 43.55% year on year; realized net profit to mother of 7.404 billion yuan, up 153.20% year on year; gross sales margin was 14.04%, +3.59 pct year on year, net sales margin 6.27%, +2.72 pct year on year. Among them, 23Q4 achieved revenue of RMB 33.585 billion, +12.31%/+6.71% YoY; realized net profit to mother of RMB 1,086 billion, or -13.97%/-56.75% YoY. 24Q1 achieved revenue of 23.084 billion yuan, -0.30%/-31.27% YoY; realized net profit of 1,176 billion yuan, -29.09%/+8.24% YoY, and realized net profit without return to mother of 191 million yuan, -84.34%/-67.16% YoY.
The rapid expansion of N-type production capacity led to a significant increase in performance. The company shipped 78.52 GW of PV modules in 2023, ranking first in the industry according to InfoLink Consulting. Among them, the N-type shipped 48.41 GW, accounting for about 62%, an increase of 352% over the previous year. Thanks to the increase in component shipments and the increase in the share of advanced products, the company's revenue and operating performance increased significantly compared to the same period last year. At the same time, the average mass production efficiency of the company's N-type batteries at the end of 2023 was over 25.8%. The average mass production efficiency in the first quarter of 2024 already exceeded 26%, and the power of N-type modules was about 30W higher than that of P-type products of the same version.
Explore smart factory construction, reduce costs and increase efficiency through digital transformation. In 2023, the company actively explores smart factory construction. The first phase of the 56GW vertical integration base with an annual output of 14GW in the Shanxi Comprehensive Reform Zone is scheduled to be gradually put into operation in March 2024, which is expected to further enhance the resilience, efficiency and cost control capabilities of the company's supply chain.
“Photovoltaic+energy storage” to explore future performance growth points. In '23, the company released a comprehensive energy storage solution covering the source network side, industry, commerce, and household side, and put into operation a 4 GWh energy storage system production line, and signed orders with many power developers, distributors, and end customers around the world.
Investment advice: Considering that component prices may still have some room to decline, we expect the company's net profit to be 41.37/54.75/7.113 billion yuan in 24-26 years, or -44.4%/+32.3%/+29.9% compared to the same period last year. The corresponding EPS is 0.41/0.55/0.71 yuan, respectively, giving it an “increase” rating.
Risk warning: the growth rate of the photovoltaic industry is declining; the risk of raw material price fluctuations; industry competition is intensifying;