On April 22, Shuangjie Electric (300444. SZ) announced its 2023 financial results and first quarter 2024 report. According to the data, the company's revenue in 2023 will be 3.140 billion yuan, a year-on-year increase of 66.82%, and since 2021, Shuangjie Electric's operating income has grown rapidly for two consecutive years, and the company has achieved a net profit of 115 million yuan, a year-on-year increase of 177.54%.
In the first quarter of 2024, Shuangjie Electric continued its growth trend, with revenue of 1.002 billion yuan, a year-on-year increase of 32.62%, and non-net profit of 81.2876 million yuan, a year-on-year increase of nearly 400%.
According to the data, Shuangjie Electric is led by serving the construction of smart grid and new energy industry, and is committed to the development, construction, operation and maintenance of clean energy, as well as the scientific and technological innovation and intelligent manufacturing of smart grid equipment and new energy equipment, and collaboratively promotes new energy businesses such as photovoltaic, wind power, and energy storage.
For the rapid growth of performance, Shuangjie Electric said that during the reporting period, the company consolidated the dominant position of the power transmission and distribution equipment business, and continued to increase the layout and investment in the new energy business, so that the operation is stable, the development momentum is strong, and the business at home and abroad is growing rapidly.
The advantages of power transmission and distribution equipment are significant
Benefiting from the upward investment boom on the grid side, in 2023, the revenue of Shuangjie Electric Smart Grid will be 1.727 billion yuan, a year-on-year increase of 35.22%.
Shuangjie Electric's products are mainly power transmission and distribution equipment and control systems below 40.5kV, and the product system covers ring main units, column switches, high and low voltage switchgears and other products, a full range of transformers, pre-installed and box-type substations of 110kV and below, distribution network automation monitoring systems and other distribution automation products. There is a correlation between this business and the investment intensity of the industry's distribution network.
The State Grid 2024 Work Conference pointed out that the annual investment of the State Grid in 2024 will continue to increase on the basis of last year's high level. In addition, according to the State Grid, in 2024, it will continue to increase the construction of a strong digital and intelligent power grid, promote the green and low-carbon transformation of energy, and build a number of digital and intelligent strong power grid demonstration projects around application scenarios such as digital distribution network, new energy storage regulation and control, and vehicle-network interaction, and the total investment in power grid construction is expected to exceed 500 billion yuan.
The industry trend is in line with Shuangjie Electric's intelligent power transmission and distribution products, and its own competitive advantages are superimposed, so that the company's business maintains high growth, and maintains in-depth cooperation with leading customers such as China Southern Power Grid, State Grid and China Energy Construction Group. It is reported that Shuangjie Electric's solid insulated ring network switchgear is the first product in China, and has maintained a leading position in the industry for more than ten years, and the low-carbon and environmentally friendly solid insulated ring network switchgear and environmental protection gas ring switchgear are the first products to be promoted in China, and the market share ranks in the forefront.
In February 2023, Shuangjie Electric won the bid of 320 million yuan in the second batch of framework bidding projects for distribution network equipment of China Southern Power Grid Corporation in 2022, of which 204 million yuan was won for ring main unit products, accounting for 63.42%.
In 2023, the sales volume of Shuangjie Electric's power transmission and distribution equipment will be 40,564 units, a year-on-year increase of 25.25%.
New energy business surged by 148%
In addition to the outstanding performance of traditional strengths, Shuangjie Electric has stepped up the investment and layout of new businesses to form a new performance growth point for the company. Last year, the company's new energy revenue was 1.272 billion yuan, a year-on-year increase of 148%, and the proportion of total revenue also increased significantly from 27.26% last year to 40.53%.
Shuangjie Electric's new energy business mainly covers the design and development, investment and construction, EPC project general contracting, operation and maintenance, integrated energy storage solutions, power sales, charging and swapping, source-grid-load-storage, optical-storage, charging-swapping, digital energy solutions and other related businesses.
Relying on the technical advantages of its products, Shuangjie Electric has won many large-scale photovoltaic and energy storage projects since 2023: in May, its subsidiary Shuangjie Hefei signed an energy storage procurement contract with Shaanxi Silk Road, with a contract amount of 317 million yuan, and in September, it won the bid for a 270MW fishery-photovoltaic complementary photovoltaic power generation project in Dashan Town, Jiangnan, Chang'anyuan, with a bid amount of 1.002 billion yuan.
Shuangjie Electric said that if the above contract can be successfully performed, it is expected to have a positive impact on the company's financial situation, operating performance and expansion of similar businesses in the future fiscal year. Judging from the financial report, the performance has begun to materialize. In 2023, Shuangjie Electric's new energy construction (mainly photovoltaic EPC) development revenue will be 303 million yuan, a year-on-year increase of 174.02%, accounting for 9.65% of the total, and the new energy storage system business revenue will be 303 million yuan, accounting for 9.66%.
The prospect of charging and swapping business is promising
In addition to photovoltaic energy storage, in recent years, with the continuous improvement of the penetration rate of new energy vehicles, the demand for charging piles has grown rapidly, and Shuangjie Electric has also relied on its own advantages in the power industry to make layouts. In 2023, the revenue of Shuangjie Electric's charging piles, battery swaps and optical storage and charging (swapping) microgrids will be 61.2105 million yuan, a year-on-year increase of 264.84%, and the proportion will increase from 0.89% to 1.95%.
According to the latest data, in January ~ March 2024, the increase in charging infrastructure will be 716,000 units, an increase of 13.2% year-on-year. As of March 2024, the cumulative number of charging infrastructure nationwide was 9.312 million units, an increase of 59.4% year-on-year.
Shuangjie Electric has a full range of products such as 7kW AC charging piles and 30-480kW DC charging piles, and has obtained the supplier qualification of State Grid Corporation, among which the SCDE100-W charging product series and SCDE100-M charging system meet the European market standards.
Shuangjie Electric's charging pile business currently operates in a business model that includes direct sales of equipment, service fees charged through self-sustaining power stations, and cooperation between mainstream operators or site resource parties and a certain percentage of service fees.
According to Shuangjie Electric, the company's cooperation model with integrated hubs such as urban investment/trading enterprises, airports and buses has been basically formed, and has maintained long-term stable supply with Dongfeng Motor, Changan Automobile, Hyundai Motor and other OEMs, providing strong support for the planning and construction of the company's future charging network.
The research report of Huajin Securities pointed out that under the strong promotion of the national "double carbon" policy, Shuangjie Electric's new energy business has developed rapidly, and the proportion of new energy business revenue in the company has gradually increased. The company's new energy sector has abundant orders in hand, and the quality of orders is high, and with the continuous landing of orders, the business can be expected to grow rapidly.
In addition, Nanjie New Energy, a subsidiary of Shuangjie Electric, is one of the first seven electricity sales companies to participate in the green electricity trading in Guangdong's renewable power trading. Last year, the company's electricity revenue grew by 379.76% year-on-year, and the transaction income was 54.2313 million yuan, accounting for 1.73% from 0.6%.
The digitalization of energy has injected new momentum into the company's development
Since 2018, Shuangjie Electric has tried to carry out digital transformation in the four major directions of new energy power generation, power grid, power consumption, and manufacturing, forming a one-stop solution, independently developing more than 20 digital software such as digital energy platform and smart park, and continuously iteratively updating to meet the new needs of the market. Internally, Shuangjie Electric optimizes, upgrades and integrates office automation system (OA), customer relationship management system (CRM), production management system (MES), product life cycle management system (PLM) and other products to realize the construction of a digital factory with full coverage from marketing to after-sales business.
For the business plan for the future 2024, Shuangjie Electric said that the company will continue to focus on the new power system with new energy as the main body and further optimize the industrial layout. On the power grid side, we will grasp the opportunity of energy digital transformation, focus on energy digital management, and promote cooperation with the two networks in the field of energy digitalization; on the distribution network side, close to the needs of users, through the improvement of environmental protection, miniaturization, intelligence, etc., maintain the competitive advantage position of solid insulated ring network switchgear, environmentally friendly solid insulated ring network switchgear, environmental protection gas ring network switchgear and other products, actively expand the market share of the two networks and the distribution network business of industrial customers, and increase profit contribution; On the energy storage side, we will seize the window period of market outbreak, continue to promote the upgrading and iteration of products and equipment, optimize product costs, and improve profit levels.
Shuangjie Electric focuses on the layout of the new energy industry chain of "wind, solar, storage, charging and exchange", through industrial investment in areas rich in wind and solar resources, deeply cultivates the new energy industry in the region and radiates the surrounding areas, drives the growth of the company's power transmission and distribution business with the rapid development of the new energy industry, and builds a new momentum for Shuangjie Electric's development again.
Looking at Shuangjie Electric's business strategy in 2024, building a new power system with new energy as the main body is the main line running through the overall situation. On the one hand, the company has deepened and implemented the digital transformation of energy, promoted in-depth cooperation with the two major power grid companies in this field, and maintained the company's leading position in the industry on the power grid and distribution network side. The digital transformation of energy and new energy empower each other, accelerate the construction of a greener, smarter and more efficient power ecosystem, and at the same time, drive the continuous growth of Shuangjie Electric's business and achieve a steady improvement in profitability.