On the evening of January 10, A.D. (002641) released a performance forecast, which is expected to have a net profit of 37.4 billion yuan - 41.5 billion yuan, a year-on-year increase of 360%-410%. The announcement pointed out that the main reason for the change in the performance of AD shares was the year-on-year decline in the main resin raw materials, the increase in sales volume and the year-on-year decrease in the impairment of receivables in the current period.
On January 9 and January 10, 2024, the company deviated from the increase by more than 20% for two consecutive working days, and the company said that the 2023 performance forecast is the result of the preliminary calculation of the financial department, and the specific financial data for 2023 will be disclosed in detail in the company's 2023 annual report, and there is no amendment to the "2023 annual performance forecast".
Judging from last year's performance, benefiting from the decline in water conservancy construction, resin raw materials** and the increase in sales, AD Co., Ltd. achieved revenue of 55 in the first three quarters of 2023$2.1 billion; Net profit attributable to the parent company 27.8 billion yuan, a year-on-year increase of 32478%。
AD was founded in 1993 and listed on the Shenzhen Stock Exchange in December 2011. The company is mainly engaged in the research and development, production and sales of plastic pipe products, the application fields cover municipal water supply, drainage, sewage, building water supply, power cable protection, agricultural irrigation, etc., is a comprehensive supporting service provider for construction engineering and urban and rural pipe network construction, production and sales rank first among domestic plastic pipe A-share listed enterprises.
At present, AD has nine production bases in the country, located in Zhejiang, Anhui, Shanghai, Jiangsu, Tianjin, Chongqing, Hunan, Guangzhou, Shenzhen, with more than 2,600 first-class dealers at home and abroad, and has established a multi-level and integrated sales network system of dealers, distributors and retailers.
In recent years, affected by the downturn in the real estate industry and the shortage of funds for real estate enterprises, the downstream demand of the plastic pipe industry has been under pressure. In this case, the first financial department will issue an additional 1 trillion yuan of 2023 treasury bonds in the fourth quarter of 2023, and the construction of water conservancy infrastructure is expected to accelerate, and the industry expects that the demand for plastic pipes will increase significantly in 2024.
As of December 18, 2023, the first batch of capital budget of 237.9 billion yuan has been issued, and the support projects mainly focus on post-disaster reconstruction of transportation, water conservancy and other infrastructure, improving disaster prevention and mitigation capabilities, high-standard farmland construction, meteorological infrastructure, etc. China Galaxy** said that the issuance of new special bonds and trillions of national bonds will accelerate the implementation of infrastructure projects in 2024 and drive the end market demand for plastic pipes.
While focusing on the core business of plastic pipes, AD shares are also developing diversified businesses as new growth points for performance, covering photovoltaic new energy, switches and sockets, home bathrooms, intelligent equipment and other businesses, the agency said that on the one hand, it is conducive to dispersing the performance risks brought about by the fluctuation of the main plastic pipe business, and on the other hand, improving brand awareness and comprehensive competitiveness through the synergy between the old and new businesses.
Among them, the scale of the solar energy business of ADA is currently steadily increasing. According to public information, AD shares in 2015 acquired AD New Energy and included in the consolidated statements, mainly engaged in solar photovoltaic modules and new energy field energy conservation and environmental protection products research and development, production and sales, solar energy business related products are mainly export-based, the current sales market covers the United States, Italy, Brazil, Spain, Canada, France, South Korea, Saudi Arabia, Brazil and other more than 70 countries and regions, the current annual production capacity of AD New Energy reached 15gw。
Judging from the performance of A.D. in recent years, the revenue scale of solar energy products has grown rapidly, from 06.4 billion yuan, an increase to 99.5 billion yuan, with a compound annual growth rate of 4799%；The proportion of operating income of solar products in the total revenue of AD shares has increased year by year, and its revenue will account for 12 in 202247%, an increase of 10 from 201566 percentage points.
It is worth mentioning that AD Xinneng is applying for listing on the Beijing Stock Exchange and passed the guidance and acceptance of the Zhejiang Securities Regulatory Bureau on December 26, 2023. China Galaxy ** analysts Wang Ting, Jia Yameng said that if the new company is successfully listed on the Beijing Stock Exchange, it will be conducive to the company to broaden the financing channels of its solar energy business, accelerate the expansion of business scale, in the context of the rapid development of the domestic photovoltaic industry, the increase in demand and abundant funds coexist, the solar business of the company has broad prospects, and is expected to become a new performance growth point of the company.
With the rapid development of the domestic photovoltaic industry, the new installed capacity of photovoltaic is expected to drive the demand for solar energy business of AD. The data shows that in 2023, China's photovoltaic installed capacity will have a strong development momentum, and the growth rate of installed capacity will expand significantly, and the first photovoltaic power generation capacity from January to November 2023 will be 55762GW, up 49% year-on-year89%, and the new installed photovoltaic capacity was 16388GW, an increase of 149 over the same period last year40%。In terms of wind power, the current wind power and solar power generation capacity in China is 97045GW, and plans to reach more than 1,200GW by 2030.
China Galaxy ** expects that during the "14th Five-Year Plan" period, the rapid development trend of China's photovoltaic industry will remain unchanged, the high photovoltaic boom will continue, the new installed capacity of photovoltaic will continue to maintain a growth trend, and the solar energy business of AD is expected to achieve more performance increments.