Event: The company released its 2023 annual report and 2024 quarterly report. In 2023, the company achieved revenue of 26.485 billion yuan, up 11.23% year on year; net profit to mother of 7.181 billion yuan, up 0.94% year on year; 2024 Q1 achieved revenue of 7.899 billion yuan, up 15.26% year on year; net profit to mother of 2,422 billion yuan, up 0.1% year on year.
Comment:
The new grid connection reached a record high. The differentiated advantages of offshore wind power surpassed 18 million kilowatts in 2023, adding 13.5356 million kilowatts of grid-connected installed capacity, including 3.4944 million kilowatts of wind power and 9.5402 million kilowatts of solar power. The total installed capacity of the company's wind power and solar power generation connected to the grid is 39.2408 million kilowatts. The company unswervingly implemented the “offshore wind power leader” strategy and gave full play to its differentiated advantages. By the end of 2023, the total installed capacity of the company's offshore wind power grid was 5.4916 million kilowatts, maintaining the domestic lead.
Affected by the increase in power generation, depreciation, and increased operating costs, net profit was +1% year over year. Judging from the operating situation in 2023, the company's wind power and solar energy utilization hours increased 79 hours and decreased by 31 hours year-on-year. Combined with the increase in installed capacity, power generation increased 15% and 14% year over year. In 2023, the company's revenue increased 11% year on year; net profit to the mother increased slightly by 0.9% to 7.2 billion yuan. The net profit growth rate was lower than the revenue growth rate mainly due to new grid-connected projects being put into operation in 2022, and depreciation and operating costs increased; power generation companies began to accrue production safety costs in December 2022; the profit level of participating companies fluctuated, and investment income fell 47.48% year on year.
Benefiting from the rapid growth of installed capacity in 23, the 24Q1 power generation capacity was +29% year-on-year, benefiting from the rapid increase in installed capacity in 2023 and the company's wind power and photovoltaic project resource situation was better than the same period last year. 2024Q1's wind power generation increased 16% and 65% year over year, leading to a 15% year-on-year increase in revenue.
On the cost side, the company's depreciation and operating costs increased significantly over the same period last year. Furthermore, due to weak wind resources in Fujian in the first quarter, investment income declined significantly to 160 million yuan year over year. Taken together, the company's net interest rate decreased by 4 pct year on year, and net profit after deducting non-return to mother increased by 1.3% year on year.
Investment advice:
The company's net profit for 2024-2026 is estimated to be 88,99,11.3 billion yuan, corresponding to 15, 14, and 12 times PE, maintaining a “buy” rating.
Risk warning: the risk that policy progress falls short of expectations, the pace of subsidy payment has slowed drastically, technological progress in the industry has slowed down, industry competition has intensified, company development projects fall short of expectations, etc.