Incident: The company released its 2023 annual report. For the full year of 2023, the company achieved total operating revenue of 14.939 billion yuan, +21.21% year-on-year, and net profit to mother of 2.07 billion yuan, +21.78% year-on-year. 24Q1 achieved total revenue of 1,728 billion yuan, +10.50% year over month, -76.80% month on month, and net profit of 266 million yuan to mother, -44.92% year on year and -72.77% month on month. The performance was in line with expectations.
Fan sales increased year-on-year, and there were plenty of orders in hand. In 2023, the company's wind turbine manufacturing achieved revenue of 11.937 billion yuan, +17.66% year on year, gross profit margin of 15.45%, and -7.80 pct year on year. Among them, fans of 5.XMW and above achieved revenue of 8.716 billion yuan, accounting for 73.02% of the sales ratio of fans and accessories, +30.05pct over the same period. The trend of larger fans is remarkable. According to CWEA statistics, the company's new lifting capacity in 2023 was 7.41 GW, +64% year over year, and its share in the domestic market was 9.3%, +0.2pct year on year. In terms of orders, the company added 14.1 GW of new orders in 2023, a record high and achieved high growth. By the end of 2023, the company's current orders were 15.89 GW, and the company's future performance was guaranteed.
Continuing to promote the offshore and overseas layout, the company's profit is expected to increase. In 2023, the company achieved overseas revenue of 310 million yuan, and achieved overseas sales of wind power equipment in Central Asia and South Asia. The gross profit margin from overseas sales was 22.07%, which is 5.25 percentage points higher than domestic sales, which can effectively enhance the company's profitability. The company has now set up an overseas marketing team of more than 200 people, which has basically covered the world's major wind power markets. The company continues to invest in offshore fan development and is expected to contribute to performance. In 2023, the company has formed a full range of 8.5MW-16MW offshore fan products. , shipping by sea can increase the company's profits.
Adhering to the “rolling development” strategy, the wind farm under construction reached 2.4 GW. In 2023, the company achieved sales of power plant products of 634 million yuan, with a gross profit margin of 36.00%; wind power generation revenue of 474 million yuan, with a gross profit margin of 73.08%. In 23, the company transferred a total of 7 wind power projects, with a total project capacity of 609.9 MW, achieving good economic and social benefits. As of December 31, 2023, the company's existing wind farm capacity was 247.6 MW, and the wind farm capacity under construction was 2.4 GW.
Investment advice: The company's net profit for 24-26 is estimated to be 23.22/26.84/3,058 billion yuan, +15.7%/15.6%/13.9% year-on-year, and EPS of 1.93/2.23/2.54 yuan respectively, maintaining the “gain” rating.
Risk warning: wind power installation falls short of expectations; risk of fluctuations in raw material prices