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Another 600 million orders! Sany Heavy Energy is flying lighter and lighter?

2024.03.28
Photovoltaic Exhibition

At the beginning of the Year of the Dragon, Sany Renewable Energy refreshed the wind turbine market with a good-looking financial report: the 2023 annual performance forecast shows that Sany Renewable Energy's operating income is about 14.947 billion yuan, an increase of 21.28% year-on-year; net profit attributable to shareholders of listed companies was about 2.003 billion yuan, an increase of 21.55% year-on-year; Basic earnings per share was 1.6751 yuan, an increase of 10.36% over the same period last year.

How good this financial report is, just compare it with the two other fan manufacturers that have announced their financial reports——

Mingyang Intelligent expects that the net profit attributable to shareholders of listed companies from January to December 2023 will be 354 million yuan to 530 million yuan, a decrease of about 2.925 billion yuan to about 3.101 billion yuan compared with the same period last year, a year-on-year decrease of 84.66% to 89.75%.

Electric Wind Power is expected to have an operating income of about 10.114 billion yuan in 2023, a year-on-year decrease of 16.24%; The net profit loss attributable to shareholders of the listed company was about 1.256 billion yuan, and the basic earnings per share loss was 0.94 yuan. In the same period last year, the operating income was about 12.075 billion yuan, the net profit loss attributable to shareholders of the listed company was about 338 million yuan, and the basic earnings per share loss was 0.25 yuan.

In addition, in 2023, Sany Renewable Energy's market share of China's wind turbine manufacturers increased by 2% compared with 2022.

Good winning rate

Sany Renewable Energy said that during the reporting period, the wind power industry maintained a good development trend, and the installed capacity continued to grow, but at the same time, the competition in the wind power market continued to intensify, and the bidding price of wind power products declined.

Much of the reason for Sany's earnings stance is its good winning rate. According to statistics, in 2023, wind turbine manufacturers will win bids for a total of 697 projects and a total of 106.9GW of wind turbine procurement (including international projects and excluding frame mining), a year-on-year increase of about 20%. Among them, Sany Renewable Energy won the bid for 13.5GW wind turbine orders in 2023, ranking fourth.

At the beginning of this year, Sany Renewable Energy still won the bid frequently. In January 2024, a total of 18 wind power projects won the bidding results, with a cumulative capacity of 22,599.5MW (about 22.6GW). Sany Renewable Energy ranked third, with 340MW of winning bids, accounting for 13.08% of the winning bids. Recently, it won a new order of 600 million yuan. It is reported that the bidding results of the wind turbines of Heilongjiang Kedong Baoquan 200MW wind power project and Keshan Yongquan 200MW wind power project were announced: Sany Renewable Energy won the bid, with a bid amount of 608 million yuan.

It is reported that the current driving factor of wind turbine prices is mainly the large-scale capacity of wind turbines. It is understood that Sany Renewable Energy continues to refresh the record of the world's longest onshore wind power blade. In March 2023, Sany Renewable Energy's 104-meter onshore wind turbine blades officially rolled off the production line; On January 21 this year, Sany Renewable Energy's 131-meter onshore wind turbine blades rolled off the assembly line in Bayannur Zero Carbon Digital Intelligence Industrial Park.

Although the blades are long, the gross profit margin is getting lower and lower. In the third quarter of 2023, Sany Renewable Energy's gross profit margin has fallen to 14.9%, the lowest in nearly two years. The investment income is the main reason why Sany Renewable Energy is getting lighter and lighter.

Investment income

Sany Renewable Energy has said that the company adopts an overall strategy of "rolling development" for the power station operation business, that is, in the process of continuous investment and construction of new power station assets, it will continue to choose opportunities to transfer mature power station projects and control the scale of existing assets as a whole, which is conducive to further integrating the company's resources and giving full play to the investment benefits of funds.

In other words, investment income is an important source of income for Sany Renewable Energy. From 2021 to the first nine months of 2023, the company's net investment income was 521 million yuan, 936 million yuan, and 891 million yuan respectively.

According to statistics, in 2023, Sany Renewable Energy will sell the equity of more than 10 subsidiaries, and the above transfers are expected to increase the total profit of Sany Renewable Energy by more than 1 billion yuan. Among them, in terms of wind farm transfer, Sany Renewable Energy will sell 100% of the shares of a number of subsidiaries such as Taihangshan New Energy, Channel Chiyuan New Energy, Tongzhao New Energy and Xiangyu New Energy in 2023.

Looking at the timeline, most of the transfers were concentrated in the fourth quarter. On December 15, 2023, Sany Renewable Energy issued two announcements stating that it agreed to transfer 100% of the equity of Tongzhao New Energy held by the company and 100% of the equity of Xiangyu New Energy held by its wholly-owned subsidiary Renewable Energy International to Jidian Green Energy, with the transfer consideration tentatively set at 263 million yuan and 203 million yuan respectively, which is expected to increase the company's total profit by about 305 million yuan and 419 million yuan respectively. In other words, the report card of Sany Renewable Energy in the fourth quarter is indispensable for the transfer of these two shares.

Sany Renewable Energy has chosen a relatively easy path through the cycle. On the one hand, the rapid sale of power plants can quickly revitalize funds, and on the other hand, it also avoids the consumption of operating power stations.

Wind turbine market in 2024

Since the beginning of the year, the road of China's wind turbine market has not been smooth. Domestic wind turbine manufacturers are still comfortable with the cycle, and foreign markets are obviously not optimistic.

A few days ago, Christian Bruch, president and CEO of Siemens Gamesa, publicly stated that if the EU does not take action to boycott the "cheap" ChinaWind power equipmentimports, then the European wind industry will suffer the same fate as its solar PV industry.

The crises that Siemens Gamesa has fallen into are well known, from the "accidents" of the wind turbine factory and the tragic return of goods, to the excitement and plummeting in the stock market. Siemens' path is getting narrower and narrower, and it is obviously unreasonable to blame China for its "mistakes".

It starts from the end of the micro and no one knows, and it is known to all families. In addition to the blame, Chinese fans have also received a lot of "slander". At the "2024 Offshore Wind Journal Conference" held not long ago, Damien Lohrs, senior vice president of global supply chain at Vestas, expressed his opinion at the conference that although Chinese wind turbines are cheaper than European ones, "Chinese wind turbines may never be able to land in the US market, and the European market is also very difficult for them".

He pointed out three main reasons: the price of wind turbines in China is lower than the cost of production, which makes people doubt the life expectancy of the product; Chinese OEMs lack performance in the European and American markets; The EU's regulations on carbon emissions from steel are very strict, and manufacturers who fail to meet them face high taxes.

Regardless of the unjustified attack or the judgment of the enemy, when China's wind power has full advantages in technology and price, the resistance to its going overseas will continue to increase. The overseas wind turbine market in 2024 should be extremely challenging.

Sany Renewable EnergyMarket dynamics

Next article:Wind power resource tax is coming, and the four acquisition models are going to be invalid?

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Another 600 million orders! Sany Heavy Energy is flying lighter and lighter?

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