Incidents:
The company released its 2023 annual report and 2024 quarterly report. In 2023, the company achieved operating income of 27.859 billion yuan, a year-on-year decrease of 9.39%, net profit of 372 million yuan, a year-on-year decrease of 89.19%, and net profit after deduction of 206 million yuan, a year-on-year decrease of 93.36%. With 2024Q1, the company achieved operating income of 5,075 billion yuan, an increase of 84.6% over the previous year, a net profit of 304 million yuan to mother, and a net profit of 291 million yuan after deduction.
Land and sea advance side by side, leading new wind power technology. The company is a leading domestic wind power manufacturer. It has a wide range of products, including the single-engine power cover 1.5-11MW series onshore fans and the stand-alone power cover 5.5-22MW series offshore fans. In 2023, the company achieved 9.69 GW of fan sales, up 32.66% year on year; corresponding sales of fans and related accessories reached 23.517 billion yuan, up 3.11% year on year; gross profit margin on sales of fans and related accessories was 6.35%, a decrease of 11.42 percentage points year on year. The company is a leader in large-scale fans in China. The Mingyang Smart MYSE18.X-20MW offshore fan was awarded the “World's Best Offshore Wind Turbine” Gold Award for its excellent performance and technological innovation. The wind turbine is currently the offshore unit with the largest stand-alone capacity and the largest fan diameter in the world. It has been recognized by the National Energy Administration and successfully selected as one of the “Top Ten Scientific and Technological Innovation Achievements in the Energy Industry in 2023". The company's installed capacity of offshore fans remains industry-leading. According to WoodMackenzie statistics, the company ranked first in the annual number of new offshore wind power orders with an order volume of 1.8 GW in 2023.
The operation and rolling development of power generation projects enhances the company's profit level. According to the 2023 annual report, the installed capacity of the company's operating new energy power plants was 2.56 GW, up 70.47% year on year; the installed capacity under construction was 3.30 GW, down 3.49% year on year. New energy power plants achieved a total power generation capacity of 4,016 billion kilowatt-hours, an increase of 40.46% year on year, and the operating revenue of the power plant was 1,499 billion yuan, up 12.24% year on year; gross margin was 63.00%, an increase of 3.12 pct year on year, and the average number of hours of power generation in operation was 1,568 hours. At the same time, the rolling development of the company's power plants achieved operating revenue of 2.08 billion yuan, a gross profit margin of 30.97%, an increase of 8.83 pct over the previous year. The profitability was far higher than that of the whole machine. This business greatly increased the company's profits. Issuing public infrastructure REITs is an important model for the company to achieve “rolling development” of new energy power plants. Through two-wheel drive of industry and capital, the company's asset operation model and business model are enhanced, and the world's leading smart energy industry group is further built to achieve green, inclusive and intelligent energy.
Based on wind energy, we actively promote the development of solar hydrogen storage. During the reporting period, the company used smart energy application scenarios to drive demand, promote high-end new energy technology, industrial ecology, and application scenarios, explore application scenarios and implementation paths for new power systems centered on new energy sources, and form overall solutions for new energy sources. By continuously increasing investment in the photovoltaic industry, energy storage industry, and hydrogen energy industry, it is possible to balance the intermittency and instability of renewable energy, thereby improving overall energy utilization efficiency and power grid stability. With the continuous improvement of the company's integrated layout of wind and solar hydrogen storage, through innovation in technology and business models, combined with the design concept and implementation capabilities of the overall wind and solar hydrogen storage power plant, the synergy effect of wind and solar hydrogen storage was realized, and the grand blueprint for an industrial group with an integrated layout of the two wings of scenery was gradually achieved.
Investment advice: The company is a leading domestic wind power enterprise, leading the development of the industry by land and sea, increasing the company's profits by rolling development models for power plants. The company also simultaneously developed a series of optical hydrogen storage products to create a new potential growth pole. We predict that the company's net profit for 2024-26 will be 24.12, 31.08 and 3.798 billion yuan, respectively, corresponding to EPS of 1.06, 1.37 and 1.67 yuan, and PE is 9, 7, and 6 times.
Risk warning: 1. The installed capacity of the industry is lower than expected. 2. New product development falls short of expectations. 3. Increased competition in the industry.