① Haixing Electric Power's net profit in 2023 exceeded institutional expectations; ② The company plans to “pay 11 yuan for 10 shares”, and the dividend strength reached a record high; ③ overseas markets are blooming more, and the domestic market is relatively lackluster.
Financial Services Association, April 15 (Reporter Luo Yichen) Haixing Electric Power (603556.SH), whose stock price is soaring, achieved net profit of 982 million yuan in 2023, an increase of nearly 50% over the previous year, exceeding the expectations of many previous institutions.
This evening, Haixing Electric Power released its 2023 performance report, achieving revenue of 4.2 billion yuan, an increase of 26.91% year on year; net profit to mother was 982 million yuan, up 47.9% year on year. At the same time, the company's operating cash flow also rose sharply. According to several brokerage firm research reports, this performance exceeded market expectations. Previously, brokerage firms generally expected the company's net profit to be around 800 million yuan for the whole year.
Along with the increase in performance, the company's annual dividend scale also reached a new high. Haixing Electric Power plans to “distribute 11 yuan” to all shareholders. The total amount of dividends is expected to be 535 million yuan, or 54.44% of net profit returned to mother in 2023.
As an export-oriented company, Haixing Electric Power's performance growth is mainly due to overseas market contributions. In 2023, the company's overseas sales increased 51.29% year on year to reach 2,791 billion yuan, of which the overseas smart electricity business achieved revenue of 2,561 billion yuan, an increase of 41.72%; overseas intelligent distribution achieved revenue of 117 million yuan, an increase of 406.67% year on year; and overseas new energy business achieved revenue of 113 million yuan, an increase of 672.38% year on year.
Regarding the growth of overseas business, the company stated in its annual report that the increase in the share of solution products and the development of emerging markets have contributed. The relevant person in charge of the company said during an investigation by a reporter from the Financial Federation that the order size for single meter products is generally no more than 10 million, but the size of a single order for M2C and AMI solution projects can reach 200 million to 300 million yuan, and due to the higher technical complexity, the average gross profit of the latter is also higher than the average gross profit of meter products.
In terms of overseas market expansion, Haixing Electric Power has won bids for many large-scale projects in Brazil. Based on this, the company proposed to replicate Brazil's experience to other regions, and also indicated that it has sufficient domestic new energy production capacity and is seeking to build a channel system to help products go overseas. Judging from the 2023 annual report, the company made a breakthrough in the African market, completed the bid and delivery of distribution network collection projects in the African market, and also obtained revenue from the overseas new energy channel business.
In contrast, there was a slight decline in domestic business, with an overall revenue scale of 1,372 billion yuan. The company blamed the reason for the delay in investment in the distribution grid. In April of this year, the State Grid announced the winning bid results for the latest batch of metering equipment (electric energy meters). The total bid amount reached RMB 12.380 billion, an increase of 37.28% over the previous year. The Galaxy Securities Report indicates that it is expected that between 2024-2025, the domestic market will usher in a new round of electricity meter stock replacement peak, and the growing demand trend in overseas markets will continue.