2024Q1 The company's overall net profit to mother increased significantly
The company released its 2024 quarterly report. In 2024Q1, the company achieved operating income of 2,569 million yuan, +29.93% year over year; achieved net profit of 62 million yuan, +203.18% year over year; realized net profit of non-return to mother of 47 million yuan, +748.12% year over year. The overall gross margin of the 2024Q1 company was 18.3%, and the sales/management/R&D/finance expense ratios were 6.2%/6.9%/3.4%/1.8%, respectively, +0.1/+0.2/ flat/-0.5pct year-on-year, respectively, and -0.8/+1.3/+0.6/+0.7pct, respectively. 2024Q1's overall net profit margin was 2.4%, +1.37pct year-on-year. The company is the leading charging operator. The charging network business turned a loss into a profit in 2023, and is expected to continue to contribute to profit elasticity. We maintain the original profit forecast and expect the company's net profit to be 7.23, 10.30, and 1,433 billion yuan respectively for 2024-2026, and 0.68, 0.98, and 1.36 yuan/share for EPS. The current stock price corresponds to PE at 29.4, 20.6, and 14.8 times, respectively, maintaining a “buy” rating.
The company's charging network business turned a loss into a profit in 2023, and it is expected that the company's charging network business will continue to develop rapidly. By the end of 2023, the company operated 523,000 public charging terminals, maintaining the number one in the industry. In 2023, the company's charging capacity was about 9.3 billion kilowatts, +59% year-on-year. In addition, the company is vigorously developing the new energy microgrid business, expanding about 400 new energy microgrid projects in 2023. By the end of 2023, the company had accumulated nearly 500 new energy microgrid projects through investment, construction and sales models, covering more than 100 cities. In terms of virtual power plants, by the end of 2023, the company had achieved online information interaction with 24 networks, provincial and prefecture-level power control centers, virtual power plant management centers or load management centers, and the schedulable resource capacity with virtual power plant conditions exceeded 4 million kW. In terms of ecological cooperation on charging networks, by the end of 2023, the company had established more than 260 wholly-owned or joint ventures nationwide, including more than 150 state-owned enterprises such as government investment platforms and public transport groups. Furthermore, the company actively reached one or more forms of cooperation with more than 70 car companies, including Porsche, Audi China, Mercedes-Benz, BMW, Jaguar, Land Rover, Volvo, GM, Lotus, Geely, Chery, GAC Aian, Xiaopeng, and Ideal, to jointly build brand stations and charging network data support.
Risk warning: The profitability of charging pile operation falls short of expectations, and competition in the charging pile industry is intensifying.