1Q24 revenue increased year-on-year
The 1Q24 company achieved revenue of 153 million yuan, +55.32%/+10.70% month-on-month, and the company's charging pile business maintained the same relatively rapid growth; net profit to mother was -08 billion yuan, minus -08 billion yuan. We maintain our profit forecast. The company's net profit for 24-26 is estimated to be RMB 148/2.27/360 million yuan, respectively. Referring to the company Wind's 24-year average PE of 24 times, taking into account the scale effect of the company's charging pile business, the profitability increased and more flexible. The company was given 36 times the reasonable PE for 24 years, corresponding to a target price of 7.64 yuan (previous value 7.43 yuan), and maintained a “gain” rating.
1Q24 lost $08 billion in net profit to mother, and gross margin increased year-on-year. 1Q24 achieved revenue of 153 million yuan, or +55.32%/+10.70% month-on-month, mainly due to an increase in sales revenue from charging piles. Net profit of 1Q24 was -08 billion yuan, minus -08 billion yuan. The year-on-year increase in losses was mainly due to year-on-year increases in sales expenses, management expenses, and R&D expenses during the period. 1Q24 achieved gross profit margin of 26.41%, +0.47 pct year over year; net profit margin -5.11%, -4.26 pct year over year. The cost rate for the 1Q24 period was 28.48%, +1.60 pct year on year. Among them, sales, management, R&D, and finance expenses were -1.14 pct/+1.78 pct/+1.95 pct/-0.98 pct, respectively. The large increase in management expenses and R&D expenses is estimated to be mainly due to the company expanding its personnel team and increasing R&D investment.
The new project is progressing smoothly and is expected to support continued development
The company announced on November 21, 23 that it will invest 1.5 billion yuan to build the “Xianyang R&D and Manufacturing Base Project” in the Xianyang Economic and Technological Development Zone. The first phase will build production lines for battery packs, charging piles and energy storage systems, and the second phase will build production lines for charging products and energy storage equipment. In addition, the “Chuxiong Charging Infrastructure Construction Project” cooperated by the company and Jinjiang Energy Group was officially launched on April 1, '24, with a total investment of 399 million yuan. It is estimated that after completion, 462 stations will be built in 2 cities and 8 counties in Yunnan Province, with a total power of 223.4 MW. The new construction project is expected to continue to contribute to the company's performance growth.
Equity repurchases are progressing steadily, demonstrating the company's strong confidence in development
The company announced on February 5, '24 that it will use its own funds to repurchase shares through centralized bidding. The total amount is between RMB 80 million and RMB 15,000, and the maximum repurchase price is RMB 9.00 per share.
By the end of March, the company had repurchased a total of 9.7655 million shares, accounting for 1.40% of the company's total share capital. The highest transaction price was 7.53 yuan/share, the lowest was 4.61 yuan/share, and the total payment amount was 56.0579 million yuan. This move further implements the company's “improve quality, increase efficiency, and focus on return” action, demonstrating the company's strong confidence in future development.
Risk warning: NEV production and sales growth fell short of expectations, charging pile shipments fell short of expectations, and increased competition in the industry led to a decline in profitability.