CHINT ELECTRICS(601877) 长江证券·2024-05-20 09:32Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Views - The company reported a revenue of 57.3 billion yuan in 2023, representing a year-on-year growth of 25%. However, the net profit attributable to shareholders decreased to 3.7 billion yuan, influenced significantly by the fair value changes of its holdings in Zhongkong Technology and non-recurring losses from asset disposals in 2022. The adjusted net profit after excluding non-recurring items was 3.8 billion yuan, reflecting a 15% increase year-on-year. For Q1 2024, the company achieved a revenue of 15.9 billion yuan, a 1% increase year-on-year, while the adjusted net profit was 1 billion yuan, down 5% year-on-year [4][5]. Business Segments Summary Low Voltage Electrical Equipment - The low voltage electrical equipment segment generated a revenue of 20.1 billion yuan in 2023, marking an 8% increase year-on-year. The company has been enhancing its channel capabilities and expanding its market presence, achieving a domestic market share increase. By the end of 2023, the company had 445 primary distributors and over 21,860 secondary distributors, covering approximately 92% of county-level markets. The international business also showed growth, with revenue reaching 4.5 billion yuan, a 16% increase year-on-year, particularly strong in North America with over 50% growth. The low voltage electrical equipment segment is expected to continue performing well in Q1 2024 [5][6]. - The gross margin for the low voltage electrical equipment business was 28% in 2023, an increase of 1.85 percentage points year-on-year, attributed to improved cost control and logistics management. The gross margin is expected to maintain its recovery trend in Q1 2024 [5][6]. Photovoltaic Business - The photovoltaic segment, particularly the household solar installations, continued to grow rapidly. The subsidiary, Zhengtai Aneng, achieved a grid-connected installation capacity of over 12 GW in 2023, a growth of approximately 50%, capturing a market share of about 29%. The company also sold 8 GW of power stations, continuing its asset-light operational model. By the end of 2023, the company held approximately 14 GW of household power stations, with Zhengtai Aneng reporting a net profit of 2.6 billion yuan, a 50% increase year-on-year. The household photovoltaic installation capacity is expected to see significant growth in Q1 2024 [5][6]. Financial Projections - For 2024, the company is projected to achieve a net profit attributable to shareholders of 4.8 billion yuan, corresponding to a price-to-earnings (PE) ratio of approximately 9 times [5].