Event: the company released its quarterly report of 2024, and Q1 achieved operating income of 24% in 2024Jackpotcitynetfreeslots.9.2 billion yuan, down 6.42% from the same period last year, realized net profit of 235 million yuan, down 10.57% from the same period last year, and deducted 221 million yuan from non-home net profit, down 9.77% from the same period last year. 2024Q1 performance is in line with expectations, the downstream distribution is further balanced, and many areas are expected to contribute flexibility. (1) growth: in the first quarter of 2024, the company achieved revenue of 2.492 billion yuan, down 6.42% from the same period last year, and returned to its mother of 235 million yuan, down 10.57% from the same period last year. The company's performance is under short-term pressure, and we judge that the main reason is that the metallurgical industry, which is mainly downstream of the company, has made a decline in profits since 2022, which in turn affects its capital expenditure. Looking forward to 2024, the company is making great efforts to expand other areas except metallurgy, such as coal chemical industry, petrochemical industry, pharmaceutical industry, electric power, compressed air energy storage, etc., so that it can continue to reduce its dependence on a single metallurgical industry (2021-2023). The proportion of revenue from the metallurgical industry is 71.60% 68.54% and 45.85% respectively). With the continuous improvement of orders in other industries, the company's performance is expected to recover gradually. (2) profitability: in the first quarter of 2024, the company's gross profit margin was 23.40%, which was lower than the same period last year (1.53pct), and the net profit rate was 10.65%, with an increase of 0.07pct over the same period last year. During the period of the company, the expense rate is 8.77%, year-on-year growth of 0.28pct, sales / management / R & D / financial expense rate is 2.38%, 5.18%, 3.18%, 3.54%, 2.33%, respectively, year-on-year change + 0.01/+0.35/+0.55/-0.63pct, in which the increase in R & D expense rate reflects that the company is based on the new dual-carbon pattern, and innovation drives the improvement of core technology capabilities. By the end of March 2024, the company has been approved and issued a total of 89 standards and has a total of 611 patents. High-intensity R & D investment has helped the company to achieve breakthroughs in many fields and effectively enhance it.JackpotcitynetfreeslotsImprove the market competitiveness of the products. (3) Cash flow level: in the first quarter of 2024, the net cash flow generated by the company's operating activities was 232 million yuan, an increase of 10.99% over the same period last year, which is basically consistent with the profit level. It fully shows that the company, as the leader of turbine machinery, has strong bargaining power in the upper and lower reaches of the industrial chain, and the management quality is sound. The progress of multi-field development has been accelerated, and overseas markets are worth looking forward to. (1) compressed air energy storage: the company not only has the system technology of 10MW to 350MW compressed air energy storage compressor, but also completed the system scheme development of 300MW compressed air energy storage high temperature compression and 350MW compressed air energy storage medium temperature compression, which reflects the advanced nature and applicability of the company's solutions in the field of energy storage. In 2023, the company won the bid for a number of compressed air energy storage projects, realizing full market coverage in the field of large, medium and small-scale compressed air energy storage, among which a 300MW high-temperature compressed air energy storage project is the largest artificial chamber gas storage project in the world, and the company provides it with high-end axial flow compressors and centrifugal compressors. We believe that the follow-up new type of energy storage represented by compressed air is expected to carry out a demonstration project supportive electricity price policy, the rate of return of investors will be significantly improved, and the willingness to invest in the project is expected to be significantly enhanced. According to our estimation, the long-term market space of compressors for air energy storage is about hundreds of billions of magnitude, and the company will fully benefit. (2) overseas market: the company firmly adheres to the overseas strategic guidance of "going out, going in, and going up", and cooperates with large domestic design institutes, engineering companies and other partners to go out to sea to expand overseas markets and expand market share. Continue to achieve positive results. In 2023, the company's compressors and expanders were used in foreign polyolefin plants for the first time, and a foreign chemical complex polyolefin plant ethylene circulating gas compressor and expander project was signed, which broke the monopoly of foreign equipment in this field. it is another major breakthrough in the international market. In the European market, the company signed an European user circulating hydrogen compressor project, which is the company's first set of circulating hydrogen compressor exported to the country, which has important market demonstration significance for the company to enter the country's oil and gas chemical market. Maintain a "buy" rating: we expect the company's 2024-2026 net return to be $1.522 billion, corresponding to a PE of 13.6, 11.6, 10.4 times. Risk hint: the industrialization of compressed air energy storage is not as expected, and the company's new areas and overseas development are not as expected. [disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.
[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.