Financial Summaries
Year 23: Achieved revenue of 6.39 billion yuan, +72.6% year over year; net profit to mother of 345 million yuan, +676.6% year over year; deducted non-net profit of 306 million yuan, +2220% year over year.
23Q4: Achieved revenue of 2,997 billion yuan, +107.6% year on month; net profit to mother of 188 million yuan, 229% year on year, +216% month on month; net profit of 177 million yuan, +393% year on month, +224% month on month. Gross profit margin 19.9%, +2.5pct month-on-month; net profit margin 6.3%, +2.2pct month-on-month.
24Q1: Achieved revenue of 1,814 billion yuan, +122.5% year over month; net profit to mother of 154 million yuan, +297.2% year on month, -17.9% month on month; deducted non-net profit of 143 million yuan, +882% year on month, -19.6% month on month. Gross profit margin 20.8%, +0.9pct month-on-month; net profit margin 8.1%, +1.8pct month-on-month.
Tracking stand shipments are growing rapidly, and there are plenty of orders in hand
In 2023, the company's fixed bracket revenue was 2,062 billion yuan, up 26.34% year on year; tracking bracket revenue was 3,598 million yuan, up 124.13% year on year; BIPV revenue was 650 million yuan, up 65.16% year on year.
In 2023, the company shipped 7.6 GW of tracking brackets, +129%; in 2024 Q1 financial revenue confirmation, the total volume of tracking stand products was 3.8 GW. Judging from the orders in hand, as of the end of Q1 in 2024, the company ordered about 5.9 billion yuan of tracking brackets. Based on the average sales price of 0.47 yuan/W in 2023, the corresponding in-hand orders were about 12.6 GW.
Achieved rapid business growth in key overseas markets such as the Middle East, Central Asia, Latin America, and India. In 2023, empowered by the “Belt and Road” policy, the company won many large-scale projects in the Middle East region.
In Central Asia, the first phase of the Uzbek 1GW photovoltaic project equipped with the CITIC Tianshuang tracking system achieved grid-connected power generation effects, and the company successively obtained various local “Sherabad” 500MW and “Tashkent” 240MW projects, continuously expanding the company's influence in the Central Asian market.
With the gradual improvement of the sales team in the Latin American market, the scale of local orders is also growing rapidly.
Based on the previous production capacity layout in India, the company signed an order for a single 3GW tracking stand.
Profit forecasting
We are optimistic that the company's tracking bracket shipments and profits will continue to exceed expectations. We expect the company's 24-26 revenue to be 101.9 billion yuan, 124.6 billion yuan, and 15.39 billion yuan respectively; net profit to mother will be 8.0 billion yuan, 10.0 billion yuan, and 1.26 billion yuan, respectively. We previously predicted that the company's net profit for '24/25 would be $60/ 8.1 billion yuan, respectively. This forecast is up from the previous forecast, mainly based on the tracking bracket's profit exceeding expectations since Q4 '23 and maintaining a “buy” rating.
Risk warning: policy risk, demand risk, new product progress falling short of expectations, competition heightened risk.