KEHUA HENGSHENG(SZ:002335) Changjiang Securities·2024-05-16 06:32Investment Rating - The investment rating for the company is "Buy" and is maintained [19]. Core Views - The company reported a revenue of 8.141 billion yuan in 2023, representing a year-on-year growth of 44.13%, with a net profit attributable to shareholders of 508 million yuan, up 104.36% year-on-year [19]. - The company's energy storage business is expected to grow significantly, with a projected increase of 60-70% in domestic energy storage and around 50% growth in overall energy business for 2024 [3]. - The data business is transitioning from traditional IDC leasing to computing power leasing, with an anticipated growth of 10-15% in data center products and smart energy [3]. Summary by Sections Financial Performance - In 2023, the company's revenue was 8.141 billion yuan, with a net profit of 508 million yuan and a non-recurring net profit of 463 million yuan, showing significant growth compared to the previous year [19]. - The fourth quarter of 2023 saw a revenue of 2.639 billion yuan, a year-on-year increase of 31.57%, and a net profit of 62 million yuan, up 255.95% year-on-year [19]. - The first quarter of 2024 reported a revenue of 1.184 billion yuan, a decline of 20.54% year-on-year, with a net profit of 74 million yuan, down 48.76% year-on-year [19]. Business Segments - The energy business generated 4.29 billion yuan in revenue in 2023, a 143% increase year-on-year, with a gross margin of 21.9% [2]. - The data business generated 3.78 billion yuan in revenue, a slight decline of 1% year-on-year, with a gross margin of 32.4% [2]. - The company is leading in domestic and global energy storage PCS shipments, with successful implementations in major projects in the U.S. and applications in various countries for photovoltaic string inverters [2]. Future Outlook - For 2024, the company expects a significant increase in energy storage demand, with a projected growth rate of 60-70% domestically and around 50% for the overall energy business [3]. - The transition to computing power leasing in the data business is anticipated to drive growth, with a forecasted increase of 10-15% in related products [3]. - The company aims to maintain order quality and profitability through advanced energy storage technologies and effective cost control measures [3].