Titan Wind(002531) 长江证券·2024-06-03 07:32Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Insights - The company reported a revenue of 7.7 billion yuan in 2023, representing a year-on-year increase of 15%, and a net profit of 800 million yuan, which is a 27% increase year-on-year. However, in Q1 2024, the revenue decreased to 1.05 billion yuan, a decline of 23% year-on-year, with a net profit of 150 million yuan, down 25% year-on-year [5][6]. Summary by Sections Annual Performance - The growth in 2023 was primarily driven by the offshore engineering and power generation segments. The offshore engineering business contributed 1.5 billion yuan in revenue with a gross margin of 16%, while the land tower business saw a revenue decline of 19% to 3.2 billion yuan, with a gross margin of 12.9%, an increase of 1.5 percentage points. The power generation segment achieved a revenue of 1.25 billion yuan, up 31% year-on-year, maintaining a gross margin of 65%. The blade business revenue fell by 8% to 1.6 billion yuan, with a gross margin of 12%, up 1.7 percentage points. The company also recognized credit impairment losses and asset impairment losses of 130 million yuan and 40 million yuan, respectively, impacting profits [6]. Quarterly Performance - In Q1 2024, the overall revenue decline was attributed to the off-season for both offshore and onshore wind sectors, leading to lower shipment volumes. The land tower revenue decreased due to limited scale effects, while the offshore engineering segment was also affected by seasonal factors. The power generation segment, however, saw growth due to increased operational scale. The company reported a positive impact on profits from credit impairment losses of 40 million yuan [6]. Financial Indicators - The company reported a significant improvement in operating cash flow, with net inflows of 1.8 billion yuan in 2023 and 500 million yuan in Q1 2024. As of the end of Q1 2024, inventory and contract liabilities increased to 2.5 billion yuan and 800 million yuan, respectively, compared to the end of 2023, indicating a solid foundation for future shipments [6]. Future Outlook - The company is actively expanding its offshore wind capacity both domestically and internationally and has achieved large-scale shipments of jacket foundations. It is expected to benefit from the growth in offshore wind installations, leading to significant performance increases. The projected net profit for 2024 is approximately 1.36 billion yuan, corresponding to a PE ratio of about 14.3 times [6].