LIGONG ENERGY TECH(SZ:002322) Founder Securities·2024-08-11 09:19Investment Rating - The report assigns a positive investment rating to the company, indicating a favorable outlook for future performance. Core Views - The company, 理工能科 (002322), has successfully navigated financial challenges and is now on a growth trajectory, with a focus on energy technology and environmental monitoring [2][25]. - The company has a leading market share in the transformer chromatographic online monitoring system and has expanded its business into energy information technology and environmental services [2][8]. - The company’s revenue and net profit have shown consistent growth, with 2023 revenues reaching 1.098 billion RMB, a year-on-year increase of 12.9%, and net profit of 246 million RMB, up 14.6% [2][15]. Summary by Sections Company Overview - 理工能科 was established in December 2000 and became the first listed company in China's online monitoring industry for power equipment in 2009. The company has since focused on energy technology and environmental monitoring [2][8]. - The company has undergone strategic acquisitions to enhance its capabilities in energy information technology and environmental services, although it has exited the soil remediation business due to underperformance [8][10]. Financial Performance - In 2023, the company reported total revenue of 1.098 billion RMB and a net profit of 246 million RMB, with significant growth in Q1 2024, where revenue reached 166 million RMB, up 16.18%, and net profit soared by 142.57% to 41 million RMB [2][15]. - The company maintains a stable cash flow, with net cash flow from operating activities at 335 million RMB in 2023, a 40.1% increase year-on-year [30]. Business Segments - The company operates in three main business areas: software and information technology, power intelligent instruments and services, and environmental intelligent instruments and services [10][11]. - The software segment, primarily driven by its subsidiary 博微新技术, has a market share exceeding 90% in the cost estimation software market, contributing significantly to revenue [33][41]. Market Demand and Growth Opportunities - There is a strong demand for online monitoring equipment, particularly transformer oil chromatographs, driven by regulatory requirements and technological advancements in the industry [49][52]. - The market for online monitoring devices is projected to grow significantly, with an estimated market space of approximately 56 billion RMB for 220kV and above transformers [52][55]. Research and Development - The company has increased its R&D investment, with the R&D expense ratio rising from 10.7% in 2018 to a peak of 17.0% in 2022, indicating a commitment to maintaining a technological edge in the industry [19][30]. - The company employs 775 research personnel, accounting for 39.08% of its total workforce, underscoring its focus on innovation [19]. Environmental Initiatives - The company is aligning with national "dual carbon" policies, focusing on green and low-carbon opportunities, with its environmental monitoring business showing signs of recovery in 2023 [61]. - The company aims to establish over 10,000 environmental data monitoring stations, enhancing its capabilities in environmental data services [61].