The power equipment business grew rapidly, and the power engineering business remained stable. 1) Power equipment manufacturing: The company currently has a 23,000㎡ production workshop, 200+ technical teams, and a 160,000㎡ intelligent equipment production base under construction, which can produce various power distribution equipment products and integrate power distribution systems. In 2018-2022, power equipment revenue grew rapidly, with a CAGR of 81.92%. 2) Power engineering construction: It can provide all kinds of users with one-stop power general contracting services for power construction, as well as professional power services such as electrical equipment maintenance services, electrical technical consulting and modification services, and electrical testing and testing. 23H1 power engineering construction service revenue was the same year over year.
R&D capabilities continue to improve, lay out virtual power plant business horizontally, and create business collaboration. R & D investment:
The company attaches importance to technological innovation. The company's R&D expenses increased from 18 million yuan in 2016 to 84.56 million yuan in 2022, and the CAGR reached 29.4%. Every year, the company has new products and services with completely independent intellectual property rights. Currently, it has 115 authorized valid patents, 69 software copyrights, 720 valid trademarks, and participated in the formulation of 7 standards. It has passed many authoritative certifications such as GB/T29490-2013 intellectual property management system certification. R&D team: The company has more than 100 software development teams with professional backgrounds in electric power, with an average of more than 8 years of R&D experience and more than 15 years of digital technology experts in the field of electric energy. They can provide advanced digital solutions, promote the integration of digital technology and energy technology, and help build new power systems and new energy systems. Virtual power plant business: Virtual power plants are a new trend in the development of the power industry. Company 23H1 signed a 100MWH virtual power plant project cooperation agreement to lay out virtual power plants, create multi-business collaboration, and create new growth points in the future.
Stock repurchases demonstrate confidence, and subscription investments enhance competitiveness. Repurchase plan: 23Q4 The company plans to repurchase shares for employee stock ownership plans or equity incentives. The total amount of repurchase capital is not less than 30 million yuan, not more than 60 million yuan. Stock subscription: The company participated in the targeted issuance of Boneng shares in 23Q4, with a total investment of 10 million yuan. Boneng Co., Ltd. independently developed and launched the BlinkOS series of standardized digital twin operating systems, covering the entire process of twin data collection and modeling, scenario construction, integration of business data, rapid development of twin applications, etc., and applied the digital twin airport construction experience to many industries such as electricity and energy. This investment cooperation will enhance the operation, maintenance and management capabilities of the company throughout the life cycle of the smart energy process and enhance the company's competitive advantage in the power field.
Investment suggestions: We expect the company to achieve revenue of 30.91/42.01/5,503 billion yuan in 2023-2025, net profit of 2.86/4.34/505 million yuan, EPS of 1.38/2.10/2.44 respectively, and PE 21/14/12 times, coverage for the first time, giving it a “recommended” rating.
Risk warning: risk of payment not meeting expectations; risk of economic fluctuations; risk of increased market competition.