Xinneng Technology23 achieved revenue of 686 million yuan for the whole year, +5.59% year on year, and net profit of 220 million yuan to mother, +14.99% year over year. 24Q1 achieved revenue of 159 million yuan, +25.01% YoY, +11.6% month-on-month, and net profit of 31 million yuan to mother, +3.32% YoY and -9.4%.
The volume and profit of the power plant both increased, and the full year's performance grew rapidly. In terms of power plant business, the company achieved steady growth throughout the year. The total grid-connected capacity of the company's self-owned distributed photovoltaic power plants was about 828 MW, an increase of about 102 MW compared to the beginning of the period, and about 163 MW of self-owned distributed photovoltaic power plants under construction, to be built, and to be signed. The scale of the company's own distributed photovoltaic power plants continued to move towards the GW level with a steady growth trend. In terms of business profit, the company's 23 gross profit margin for the full year was 57.38%, +2.48pct year-on-year, indicating that electricity prices continued to rise. According to the company's estimates, excluding force majeure factors such as prolonged overcast, rainy, and snowy weather, it is estimated using the current execution price of electricity for large industries. In the future, this part of the power plant will generate electricity throughout the year. It is estimated that annual power generation revenue will increase to about 605 million yuan (excluding tax), gross profit will increase to about 400 million yuan, and gross margin can reach about 66%.
Review the current situation and adjust the scale of the business. The company reviews the current situation and adjusts its business scale flexibly. On the premise of meeting the needs of PV modules, personnel, resources, etc. for self-owned power plant construction, it sells PV modules abroad and undertakes EPC orders according to gross margin. The scale of the two businesses has shrunk in the current period, and business revenue and gross profit have decreased accordingly.
Second, competition in the charging pile business has intensified. The company has reduced the service fee collection rate accordingly, and the gross margin of the business has decreased accordingly.
Refinancing accelerates the nationwide deployment of distributed photovoltaic power plants. During the reporting period, the company successfully issued convertible corporate bonds and raised a total of 800 million yuan. The funds were mainly used for distributed photovoltaic power plant construction projects and bank loan repayment.
Investment advice: Considering the contraction of the PV module business, the five big four companies entered the industry to bring competition. We expect the company to achieve net profit of 2.60/3.09/363 million yuan in 24-26, +18.2%/18.9%/17.5% compared to the same period last year, and EPS of 0.52/0.62/0.73 yuan, respectively, giving it an “increase” rating.
Risk warning: component prices have risen above expectations, and industry development policies have fallen short of expectations