ChinaSouthernPowerGridTechnology(SH:688248) EBSCN·2024-04-01 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return exceeding 15% over the next 6-12 months [4][17]. Core Insights - The company achieved a revenue of 2.537 billion yuan in 2023, representing a year-on-year growth of 42%. The net profit attributable to shareholders was 281 million yuan, up 37% year-on-year [1]. - The company's energy storage system technology service business saw a revenue increase of 123% year-on-year, reaching 726 million yuan, with a gross margin of 15% [5]. - The report highlights the rapid growth of the company's energy storage business, driven by significant orders and project completions, indicating substantial future growth potential [3][5]. Summary by Relevant Sections Financial Performance - In 2023, the company reported a total revenue of 2.537 billion yuan, with a net profit of 281 million yuan, and a non-recurring net profit of 264 million yuan, both showing a growth of 37% year-on-year [1]. - The fourth quarter alone generated a revenue of 903 million yuan, marking a 32% increase, and a net profit of 121 million yuan, which is a 74% increase year-on-year [1]. Business Segments - The testing and commissioning services segment generated 582 million yuan in revenue, a 65% increase year-on-year, although the gross margin decreased by 5 percentage points to 42% due to higher material costs [2]. - The energy storage business's revenue growth was attributed to the completion of large-scale projects, including significant energy storage stations, which contributed to a high gross margin for certain projects [5]. - The smart equipment segment achieved a revenue of 1.127 billion yuan, with the smart distribution and utilization equipment business growing by 32% year-on-year [6]. Profitability and Valuation - The report projects net profits for 2024, 2025, and 2026 to be 426 million yuan, 625 million yuan, and 811 million yuan respectively, with corresponding P/E ratios of 39, 26, and 20 [3][5]. - The company is expected to maintain a strong return on equity (ROE), projected to reach 19.29% by 2026 [5].