The company's 2023 performance is in line with expectations. Since its establishment, the company has been focusing on overall power information system solutions. It has been deeply involved in the power software service industry for more than 20 years. Its business scope includes power consulting and design, system integration business, engineering construction and operation and maintenance.
In 2023, we achieved revenue of 1,062 million yuan, an increase of 22.96% year on year; after deducting non-net profit of 225 million yuan, an increase of 19.74% year on year. Among them, the system integration business revenue was about 696 million yuan, up 2.58% year on year, construction and operation and maintenance business revenue was about 307 million yuan, up 125.27% year on year, and the power design business revenue was about 51 million yuan, up 11.14% year on year.
Guided by grid demand, continuous optimization and innovative research and development
In 2023, the company's R&D expenses increased by 50.58%, and a number of new products were launched, including substation intelligent inspection algorithms and inspection robots, microgrid integrated energy management platforms, distributed group control integrated terminals, intelligent optical fiber wiring management systems, etc., to respond to the requirements of intelligent grid inspection instead of manual inspection, solve grid connection and control problems caused by excessive distributed energy access ratio, and solve the problems of grid fiber fault diagnosis and timely response to maintenance. In the 2023 Smart Inspection Algorithm Special Verification Competition held by the Chinese Academy of Electrical Sciences and the State Grid Academy of Electrical Sciences, they were selected as the top ten comprehensive teams of the year.
Diversification to broaden the market and vigorously develop business outside the province
While stabilizing the Jiangsu market, the company continues to expand markets outside the province. In 2023, the company achieved revenue of about 551 million yuan in Jiangsu, an increase of 35.16% over the previous year, and achieved revenue of about 511 million yuan outside the province, an increase of 12.31% over the previous year. Among them, places such as Beijing, Anhui, and Fujian account for a relatively high share. In the future, the company will further increase its share of revenue in markets outside the province.
Investment advice
We expect net profit from 2024 to 2026 to be 333/4.29/565 million yuan, respectively, and the corresponding PE will be 17.07/13.22/10.04, respectively, covered for the first time, and given a “buy” rating.
Risk warning
Market competition increases risk; risk of concentration of upstream suppliers; risk of concentration of downstream customers;