Guodian Nanzi: a pioneer in the field of electric power automation in China, helping the field of heavy-duty gas turbines to achieve a breakthrough of "0".

In 2023, the "Huadian Ruilan" heavy-duty gas turbine control system (TCS) led by Guodian Nanzi (600268) boosted a major breakthrough from "0" to "1" in the commercial operation of heavy-duty gas turbines in mainland China. Recently, the reporter of "Public Securities Journal" had a face-to-face exchange with the chairman of the company, Jing Hailin, by participating in the shareholders' meeting of Guodian Nanzi.

The amount of cash dividends is generally on the rise

At the general meeting of shareholders, Zhou Qian, secretary of the board of directors of Guodian Nanzi, introduced that in 2023, Guodian Nanzi will complete a total of 10.370 billion yuan in order contracts, a year-on-year increase of 3.14%. According to the audit of Baker Tilly International Accounting Firm, the company's operating income in 2023 will be 7.623 billion yuan, a year-on-year increase of 8.78%; the total profit was 487 million yuan, a year-on-year increase of 13.25%; net profit attributable to owners of the parent company was 227 million yuan, a year-on-year increase of 48.98%.

In terms of dividends, the 2023 profit distribution plan shows that Guodian South plans to distribute 0.9 yuan (tax included) to all shareholders for every 10 shares converted into 2 shares.

According to Wind statistics, Guodian South's dividend payout ratios from 2021 to 2023 will be 32.30%, 32.46%, and 33.60% respectively, compared with the previous 2018 to 2020, the company's dividend payout ratio ranged from 51.52% to 61.78%. There is a certain gap between the dividend payout ratio of the company in the past three years and previous years. Therefore, the company's future dividend payout ratio has become a matter of concern to the market.

In this regard, Jing Hailin, chairman of the company, told reporters that the company's cash dividend ratios from 2018 to 2023 are 53.27%, 61.78%, 51.52%, 32.30%, 32.46%, and 33.60%, respectively, and the cash dividend amounts are 27.81 million yuan, 34.76 million yuan, 34.76 million yuan, 83.43 million yuan, 49.43 million yuan, and 76.22 million yuan, respectively, and the company's cash dividend amount is generally on the rise.

Jing Hailin further said: "The company attaches great importance to shareholder returns, adheres to cash dividends, and formulates and improves shareholder return mechanisms. According to its own development stage and capital use arrangement, the company reasonably formulates profit distribution policies and coordinates the dynamic balance of performance growth and shareholder returns. According to the company's articles of association and shareholder return plan, the company shall distribute profits in cash at least once a year, and the minimum cash dividend shall be not less than 30% of the average annual distributable profit realized in the last three years without impairing the company's ability to continue operations. ”

The company will accelerate the development of new quality productivity

At the meeting, regarding the 2024 business goals of Guodian Nanzi, Zhou Qian said: "In 2024, the company will focus on high-quality development goals, coordinate development and safety, scale and efficiency, integrity and innovation, promote stable and fast forward economic operation, improve innovation driven, continuously improve the core competitiveness of the enterprise, enhance core functions, and ensure the completion of various goals and tasks throughout the year." The company expects to achieve an operating income of 823755 million yuan in 2024, an estimated total profit of 515.5 million yuan, and a net profit of 272.24 million yuan. ”

After the two sessions of the National People's Congress this year, "new quality productivity" has become a hot spot in the capital market. What makes investors concerned is whether Guodian South's key plan from 2024 involves the relevant planning of new quality productivity?

In this regard, Jing Hailin told reporters: "In order to implement the spirit of the 20th National Congress of the Communist Party of China, better adapt to the new situation, new changes and new requirements, according to the adjustment of national planning and industrial policies, Guodian Nanzi will complete the mid-term adjustment of the company's '14th Five-Year Plan' in March 2024, further clarify the development direction of the '14th Five-Year Plan' in the middle and late stages, closely focus on the new generation of information technology, high-end equipment manufacturing, new energy and other strategic emerging industries, focus on the key tasks of the industrial renewal action of central enterprises, and increase the layout of strategic emerging industries. Further optimize the industrial structure, enhance the industrial level, and clarify the focus of development layout. In 2024, Guodian Nanzi will accelerate the development of new quality productivity, promote the 'chain building' of emerging industries, the 'upgrading of traditional industries', the 'supply chain' of short-board industries, and the 'extension of chains' of advantageous industries, so as to improve the upgrading of the industrial base and the modernization of the industrial chain with the 'establishment' of new quality productivity. ”

Focus on value return and investor-oriented

Guodian South's 2023 annual report shows that China Merchants Ruiwen Hybrid Securities Investment Fund and CITIC Securities are among the top ten shareholders of the company. In addition, according to the company's quarterly report this year, one social security fund appeared in the top ten circulating shareholders, and the Shanghai Composite Index exchange-traded open-ended index securities investment fund was also among them.

However, there has been no research report on Guodian Nanzi by a brokerage in the market for many years. In response to this question, Jing Hailin told reporters: "The company attaches great importance to investor relations management and actively welcomes investors to the company for field research. In addition, the company communicates with investors through performance briefings, e-interactions, investor hotlines, e-mails, etc., to promote investors' understanding of the company and continue to deliver the company's value. As a public company, the company is open to ensuring that information is transmitted in a fair and timely manner. In the future, the company will further build a multi-dimensional and three-dimensional investor relations management system, deepen investors' understanding of the company's value, and maintain contact with analysts to gain more investors' attention. ”

At the shareholders' meeting, Mr. Xu, a shareholder in Nanjing, told the company's executives that he hoped that the company would do more investor relations activities to attract more shareholders and institutional investors to pay attention to the company.

On the day of the shareholders' meeting, Guodian Nanzi's share price closed at 7.04 yuan per share, and the company responded to the stock price. "The stock price of listed companies is affected by many factors such as the capital market environment, macroeconomy, and investor expectations. Since 2021, the company has implemented a cash dividend plan and a plan to convert capital reserve into share capital, using capital reserve to increase 2 shares for every 10 shares to all shareholders. Therefore, considering the impact of factors such as ex-rights and dividends, the company's current stock price of 7 yuan is not the same as the stock price of 7 yuan at the 2021 shareholders' meeting. Jing Hailin told reporters, "On the one hand, the company pays attention to value creation, focuses on annual business objectives, strengthens quality and efficiency, increases scientific and technological innovation, and improves the company's profitability; On the other hand, we pay attention to value returns, strengthen communication with investors, and carry out cash dividends based on investors, so as to enhance the market's wide recognition of the company's intrinsic value. ”

Reporter Zhang Cao