Description of the event
In 2023, the company achieved operating income of 608.439 billion yuan, up 6.44% year on year; attributable net profit of 12.988 billion yuan, up 13.58% year on year; net profit after deduction of 11.713 billion yuan, up 13.17% year on year. The company achieved revenue of 187.805 billion yuan in the fourth quarter, up 7.23% year on year; attributable net profit of 3.498 billion yuan, up 23.98% year on year; net profit after deduction of 2,463 billion yuan, a decrease of 26.66% year on year.
Incident comments
Benefiting from the rapid expansion of the scale of the new energy business, engineering contracting and survey and design revenue growth is progressing steadily. The company achieved revenue of 608.439 billion yuan in 2023, up 6.44% year on year; revenue for the fourth quarter was 187.805 billion yuan, up 7.23% year on year. By business, the engineering contracting and survey design sector achieved revenue of 550.56 billion yuan, an increase of 9.16% over the previous year, accounting for 90.84% of the main business revenue. The main reason for the increase is the rapid expansion of the scale of the new energy business such as solar power generation project contracting while consolidating the advantages of traditional businesses such as water conservancy and hydropower.
Gross margin bucked the trend, and exchange losses dragged down financial expenses. The company's comprehensive gross profit margin in 2023 was 13.23%, up 1.02 pct year on year; in terms of cost ratio, the company's expense ratio for the 2023 period was 8.77%, up 0.72 pct year on year. Among them, sales, management, R&D and finance expenses changed by 0.00, 0.10, 0.18, 0.44 pct year on year to 0.23%, 3.01%, 3.82% and 1.71%, respectively. The reason for the large gap between the company's deducted non-net interest rate and net interest rate in the fourth quarter of the year is that the company accrued a large amount of credit impairment losses of 2,814 billion yuan in 2023Q4, an increase of 1.922 billion yuan over the previous year. Looking at the breakdown, it is mainly due to accounts receivable contributions. Among them, the company made a combined calculation based on account age, accounting for 98.7%.
The company's order growth in 2023 was steady, and energy and electricity growth was impressive. In 2023, the company signed new orders of 1142.8 billion yuan, up 13.24% year on year. Among them, energy and electricity signed 616.8 billion yuan, up 36.2% year on year (energy and power business including hydropower, wind power, solar power, thermal power, power grids, etc.); new infrastructure signed 336 billion yuan, down 5.8% year on year; water resources and environment signed 154.8 billion yuan, down 12.4% year on year. By region, new overseas signings amounted to 215.2 billion yuan, an increase of 11.87% over the previous year, while new domestic signings amounted to 927.7 billion yuan, an increase of 13.6% over the previous year.
Continued promotion of the dual-carbon policy will drive growth, and new energy+pumped storage will form a future growth point. 1) In terms of policy, the 2021 State Council's “Pre-2030 Carbon Peak Action Plan” emphasizes vigorously developing new energy, comprehensively promoting large-scale development and high-quality development of wind power and solar power generation, and speeding up the construction of wind power and photovoltaic power generation bases. By 2030, the total installed capacity of wind power and solar power generation will reach more than 1.2 billion kilowatts, and the wind power photovoltaic market has great potential for growth. The Energy Administration issued the “Medium- and Long-Term Development Plan for Pumped Energy Storage (2021-2035)”. By 2025, the total production scale of pumped storage will be over 62 million kilowatts; by 2030, the total production scale will be around 120 million kilowatts. 2) During the reporting period, the shareholding system transformation of Dengjian New Energy Company was successfully completed. The company obtained three indicators, including new construction targets, new investment projects, and new construction projects for the whole year, all exceeding 10 million kilowatts. At the same time, the company is focusing on optimizing the energy and power business, seizing new energy markets such as pumped storage, photovoltaics, wind power, etc., and actively transitioning to clean and low-carbon energy. By the end of 2023, the company controlled a grid-connected installed capacity of 27.885 million kilowatts, an increase of 33.39% over the previous year. Among them: wind power installed capacity was 8.412,800 kilowatts, up 9.97% year on year; solar power generation installed capacity was 7.7271 million kilowatts, up 189.66% year on year. Overall, clean energy accounts for 84.6%. Continue to be optimistic about future operator transformation opportunities.
Risk warning
1. Policy progress fell short of expectations; 2. Raw material prices fluctuated greatly.