The company23 achieved full-year revenue of 1,701 billion yuan, +30.5% year on year; net profit of 166 million yuan, +28.7% year on year; net profit after deducting non-net profit of 158 million yuan, +38.7% year on year; gross profit margin 27.7%, +1.4pcts year on year; net profit margin 9.8%, year on year -0.06 pcts year on year.
The company achieved revenue of 703 million yuan in 23Q4, +20.4% year over year, +96.7% month on month; net profit of 47 million yuan, -4.7% year on month, +14.4% month on month; net profit of 47 million yuan, +0.1% year on month, +22.6% month on month; gross profit margin 25.0%, +0.5 pcts year on year, -4.0 pcts month on month; net profit margin 6.7%, -1.6 pcts year on month, -4.7 pcts month on month.
The company achieved revenue of 293 million yuan in 24Q1, +36.6% yoy, -58.4% month-on-month; net profit of 0.39 million yuan, +91.6% yoy, -15.5% month-on-month; net profit of 0.39 million yuan, +104.6% yoy, -16.9% month-on-month; gross profit margin of 31.7%, +1.4pcts yoy, +6.7pcts month-on-month; net profit margin of 13.5%, +4.2pcts month-on-month, +6.8pcts month-on-month.
The revenue of SVG and high-voltage inverters increased by 50% + in '23, and revenue continued to grow at a high rate. The company's 23 year revenue growth was mainly due to increased demand for SVG and high voltage inverters. The annual revenue for power quality inspection and control (SVG) and motor drive and control (inverter) for the full year of '23 was 97/360 million yuan, +56.77%/+56.71% year-on-year, and gross margin was 22.67%/34.48%, respectively, +0.26pcts/+5.49pcts year-on-year. The high growth rate of SVG & high voltage inverters is benefiting from the increased demand for them in the new energy industry under the “dual carbon” goal.
Gross margin remained high in Q1 and '23, and there were plenty of on-hand orders. The company's gross profit margin in '23 was 27.7%, +1.4pcts year on year; in Q1, the company's gross profit margin was 31.7%, +1.4pcts year on year, +6.7pcts year on month. As of the end of '23, the total contract debt was 140 million yuan, +32.61% compared to the end of '22. It was mainly due to an increase in sales orders and an increase in advance payments, indicating that the company had sufficient orders in hand.
The Q1 performance growth rate in '24 exceeded expectations, and net profit to mother increased by 91.6%. In Q1 2014, the company achieved revenue of 293 million yuan, +36.6% year on year; net profit to mother was 39 million yuan, +91.6% year over year. The rapid increase in performance was mainly due to a large increase in SVG product revenue compared to the same period last year and an increase in net profit due to the rebound of some credit impairment losses previously calculated.
Investment advice: The 24Q1 company has achieved a good start. Looking ahead to the full year of 24, the installed capacity of new energy sources will continue to increase, driven by the “double carbon” target. It is expected that downstream customer demand for SVG will continue to increase, and the 24-year performance is expected to continue to improve. We expect the company's total revenue for 24-26 to be 21.9, 28.4, 3.41 billion yuan, and net profit of 2.2, 2.9 billion yuan, and 350 million yuan (the value was 300 million yuan 24 years ago, adjusted to 220 million yuan, mainly due to increased competition in the energy storage industry since 23, and the revenue and profit contribution of the company's energy storage business fell short of expectations), +35%, +28%, and +21%. The PE corresponding to the current market value is 17X, 13X, and 11X, maintaining the “buy” rating.
Risk warning: risk of rising raw material prices, risk of extension of project contracts, risk of reduced gross margin, increased industry competition, and global economic slowdown.