State Power Rixin Technology (SZ:301162) Haitong Securities·2024-03-20 16:00Investment Rating - The report assigns an "Outperform" rating to the company [13]. Core Views - The company has demonstrated steady revenue growth, with 2022 revenue reaching 360 million yuan, a year-on-year increase of 19.78%, and a net profit of 67 million yuan, up 13.36% year-on-year. For the first three quarters of 2023, revenue was 309 million yuan, reflecting a 40.45% year-on-year growth, while net profit was 52 million yuan, up 41.88% year-on-year [2]. - The company is positioned as a leader in renewable energy power forecasting, continuously innovating to create new growth curves. The core product, renewable energy power forecasting, is expected to grow at rates of 28%, 28%, and 26% from 2023 to 2025 [37]. - The company is actively expanding its business in energy storage, virtual power plants, and electricity trading, with strategic investments to enhance its product offerings and market reach [35][36]. Financial Performance Summary - Revenue is projected to grow from 467 million yuan in 2023 to 786 million yuan in 2025, with corresponding net profits increasing from 111 million yuan to 197 million yuan [27]. - The gross margin is expected to improve from 68.34% in 2023 to 70.81% in 2025, indicating a strong profitability trend [29]. - The company’s earnings per share (EPS) are forecasted to rise from 1.12 yuan in 2023 to 1.99 yuan in 2025 [27]. Business Segmentation - The main revenue contributors in 2022 included power forecasting products (259.63 million yuan, 67.50% gross margin), smart grid control systems (55.07 million yuan, 61.27% gross margin), and other segments [7]. - The company has established a new subsidiary focused on energy storage and related services, indicating a strategic move to capture market opportunities in this growing sector [4]. Market Position and Strategy - The company is leveraging its expertise in data applications and software services for the renewable energy sector, aiming to provide comprehensive solutions across the energy management spectrum [37]. - The report highlights the increasing demand for information technology solutions in the renewable energy sector, driven by the growth of non-fossil energy generation, which accounted for approximately 53% of total installed capacity in 2023 [14].