02 Apr 2024

FY23 revenue was up by 9.3% YoY to Rmb20.3bn, mainly due to the 15.0% YoY growth in NG sales, which accounted for 69.2% of total revenue (FY22: 65.7%), partly offset by the 1.6% YoY decrease in sales of wind and solar power with the average on-grid tariff reduced from 0.45 Rmb/KWh to 0.44 Rmb/KWh in FY23 due to the increase in proportion of parity projects. Overall GPM decreased by 3.2ppt to 25.0% as GPM for both wind/NG was down by 2.8ppt/0.9ppt YoY to 59.0%/9.9%. Admin cost ratio was slightly down by 0.06ppt YoY to 3.5% while R&D expenses and finance costs ratios decreased -0.4ppt/-1.1ppt YoY to 1.8%/5.3%. FY23 NP declined by 3.7% YoY to Rmb2.21bn, with a payout ratio of 41%. The company expects Rmb5.6bn/ Rmb4.7bn capital expenditure on NG/wind segment for FY24.

CROSBY Research – China Suntien Green Energy (956 HK/BUY): Increasing capex in FY24