Incident: The company announced that in 2023, it achieved revenue of 608.439 billion yuan, an increase of 6.44%; net profit of 12.988 billion yuan, an increase of 13.58%; and realized net profit without deduction of 11.713 billion yuan, an increase of 13.17%. The company announced that in 2024Q1, it achieved revenue of 140.154 billion yuan, an increase of 5.15%; realized net profit of 3,045 billion yuan, an increase of 0.79%; and realized net profit without deduction of 3,021 billion yuan, an increase of 1.32%.
New energy and power engineering contracts have maintained a high increase, and the scale of operations continues to expand. The company signed new contracts for energy power/water resources and environment/infrastructure/other businesses in 2023 were 6167.74/1547.99/3360.25/35.246 billion yuan respectively, a year-on-year change of 36.17%/-12.38%/-5.77%/53.40%. Among them, the new contract amount for photovoltaic/pumped energy storage/thermal power/wind power business was 2798.97/780.51/336.47/114.801 billion yuan, a year-on-year change of 44.54%/220.61% /50.42 %/ -21.12% By the end of 2023, the company controlled a grid-connected installed capacity of 27.1885 million kilowatts, including: wind power/photovoltaic/hydropower/thermal power/independent energy storage installed capacity of 841.28/772.71/685.06/364.5/553,000 kilowatts, a year-on-year change of 9.97%/189.66%/0.07%/15.35%/1006%. China Power Construction New Energy Group, a subsidiary of the company, achieved net profit of 8.701 billion yuan, an increase of 26.58%. By the end of 2023, the company had a reserve of 8.934 billion tons of green gravel resources, a design production capacity of 505 million tons/year, and a production capacity of 132 million tons/year. In 2023, sales volume was approximately 90 million tons, achieving revenue of 4.63 billion yuan, making it a new growth pole for the company. The company signed new contracts of 331,118 billion yuan in 2024Q1, an increase of 2.71%, including 1987.56/534.27/695.35/ 9.4 billion yuan for energy, electricity, water resources and environment/urban construction and infrastructure/other businesses, respectively, a year-on-year change of 26.51%/6.27%/-34.27%/2.24%.
Investment advice: We expect the company to achieve net profit of 146.06/159.49/17.018 billion yuan in 2024-2026, up 12.46%/9.19%/6.70% year-on-year respectively, EPS of 0.85/0.93/0.99 yuan respectively, and corresponding PE 6.26/5.74/5.38 times, respectively, maintaining the “gain” rating.
Risk warning: Order execution is slow, policy progress falls short of expectations, new business is not progressing as expected, etc.