Event: The company released its 2023 annual report, achieving total operating revenue of 14.939 billion yuan, +21.21% year-on-year; net profit to mother of 2,007 billion yuan, +21.78% year-on-year.
New orders reached a record high, and the market share increased again: in 2023, the company added 14.1 GW of new orders, a record high, and achieved rapid growth; in 2023, the company's external sales capacity was 7.24 GW, and fan sales revenue of 5.XMW and above was 8.716 billion yuan, accounting for 58.76% of total revenue; by the end of 2023, the company's on-hand orders were 15.89 GW. The company added 7.41 GW of lifting capacity in 2023, a year-on-year increase of 64%, and its share in the domestic market was 9.3%, +0.2pct year-on-year. With its deep technical advantages, the company has continuously achieved new breakthroughs in the era of large-scale fans and maintained strong profitability resilience.
Wind farms are being developed on a rolling basis, and the benefits of power plant transfers are remarkable: in 2023, the company transferred a total of 7 wind power projects, with a total project capacity of 609.9 MW. 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. The company achieved power generation revenue of 474 million yuan, -19.8% year-on-year, achieved sales revenue of 634 million yuan of power plant products, and a gross profit margin of 36%. It is expected to continue to be profitable in the future.
New breakthroughs in overseas markets: In 2023, the company achieved overseas revenue of 310 million yuan, achieving overseas wind power equipment in Central Asia and South Asia. As a new breakthrough in overseas performance in recent years, the company's overseas team has basically covered major global wind power markets; the gross profit margin of overseas sales is 22.07%, higher than domestic 5.25 pcts.
Investment advice: We expect the company to achieve operating income of 186.74/233.42/28.010 billion yuan and net profit to mother of 23.89/26.88/3.20 billion yuan in 2024-2026. The corresponding PE was 14.25/12.67/11.28 times, respectively, maintaining the “gain” rating.
Risk warning: Production expansion falls short of expectations; prices of upstream raw materials fluctuate; downstream demand falls short of expectations.