Jiangxi Jovo Energy Co.Ltd(605090) (605090)
event:
Guangdong Jiangxi Jovo Energy Co.Ltd(605090) Group Co., Ltd., a wholly-owned subsidiary of the company, signed an agreement with Ju Rightway Holdings Co.Ltd(600321) Co., Ltd. on December 3, 2021 to carry out hydrogen energy industry development cooperation in the form of a joint venture, make full use of the by-product hydrogen resources of Ju Zhengyuan polypropylene project, and jointly promote the development and market-oriented operation of hydrogen energy related technologies.
comment:
The company cooperates with Ju Zhengyuan to jointly develop hydrogen energy
In terms of cooperation mode, both parties intend to carry out hydrogen energy industry cooperation in the form of establishing a joint venture, of which the registered capital of the joint venture is 50 million yuan, the proposed registered place is Dongguan City, Guangdong Province, and the investment proportion is tentatively determined as 60% of Jiufeng group and 40% of juzhengyuan; The cooperation mainly includes the development, storage and transportation, filling and sales of key technologies of hydrogen energy; In terms of hydrogen source, the PDH unit of juzhengyuan Technology Co., Ltd. has an annual output of 25000 tons of hydrogen in phase I (put into operation), and the planned annual output of 25000 tons of hydrogen in phase II project, which will supply hydrogen to the joint venture after the completion of the joint venture project and within the actual external supply capacity; in terms of operation, the joint venture will build a hydrogen supply unit and put into operation within 6 months after its establishment.
Actively formulate the development plan of hydrogen energy industry and cooperate with existing businesses
The specific development path of hydrogen energy industry formulated by the company mainly includes: technology development, focusing on the development and introduction of hydrogen production and purification technology, research and cooperation of relevant low-carbon environmental protection technology, demonstration and implementation of storage and transportation technology and standards, whole process guarantee measures related to hydrogen safety, etc; In terms of hydrogen resources, the company takes advantage of the company’s advantages at the feed gas end to carry out natural gas reforming to produce hydrogen. In addition, the company tries to produce hydrogen by electrolytic water with low power to supplement the hydrogen supply; In terms of market-oriented operation, explore the “integrated hydrogen production and hydrogenation station project”, layout, integrate and refit hydrogen stations in the Pearl River Delta, and open up the links of production, storage and transportation, filling and sales.
Hydrogen energy industry has a strong development momentum and broad development space
Under the national “double carbon” strategic goal, hydrogen energy, as a clean and low-carbon energy, is supported by a number of national and local policies, and the hydrogen energy industry is stepping into the fast lane of development. China hydrogen energy alliance predicts that China’s hydrogen demand will reach 35 million tons by 2030, accounting for 5% of the terminal energy system and at least 10% by 2050. The annual output value of the industrial chain is about 12 trillion yuan, and there is a huge space for the development of hydrogen energy industry.
Investment suggestion: this cooperation project is still in the early stage of preparation, which will not have an impact on the company’s performance this year. However, due to the pressure on the company’s performance reflected in the third quarterly report, the profit forecast is lowered. It is estimated that the net profit attributable to the parent company will be RMB 800 / 10.3 / 1.3 billion from 2021 to 2023 (previous value: 9.3 / 11.4 / 1.31 billion), corresponding to 22.7 / 17.7 / 14.1 times of PE, maintaining the “overweight” rating.
Risk tip: hydrogen energy related industries and markets are not yet mature and are greatly affected by national industrial policies, technological development and other factors; The project promotion rhythm, smooth implementation and project income are uncertain; The actual implementation of the company’s hydrogen energy industry development plan is uncertain; Intensified market competition, etc
