Shanxi Meijin Energy Co.Ltd(000723) (000723)[TableSummary]
1、 Event overview
On November 25, Inner Mongolia issued the implementation plan for high quality development of new energy equipment manufacturing industry in Inner Mongolia Autonomous Region (2021-2025), which proposed: “During the 14th Five Year Plan period, it is planned to build a production capacity of more than 5000 sets of fuel cell vehicle stack systems, more than 800 sets of hydrogen production and industrial by-product hydrogen purification equipment, and more than 400000 tons of hydrogen storage equipment. The output value of new energy equipment manufacturing industry will reach more than 100 billion yuan.”
2、 Analysis and judgment
The policy side’s support for the fuel cell industry has been introduced one after another, which is good for the rapid start of industry development.
Under the background of carbon peak and carbon neutralization, various regions have successively issued a series of policy documents, increased support for fuel cell industry and fuel cell vehicle related industries, and defined the development objectives of fuel cell related industries in the future. On the one hand, the implementation of industrial policies makes it clear that the development space of the industry is relatively broad, on the other hand, it will also help the development of the industry into the fast lane.
Shanxi Meijin Energy Co.Ltd(000723) has a relatively complete layout of fuel cell industry chain and is expected to benefit from the development of the industry.
According to the announcement, the company has set up three major systems of hydrogen energy “production, storage, transportation and processing” hydrogen energy supply system, “membrane electrode fuel cell stack fuel cell power system fuel cell commercial vehicle” hydrogen energy vehicle manufacturing system, and hydrogen energy demonstration and application, and copied the mature Guangdong hydrogen energy development model in Jinzhong, Shanxi, Qingdao, Shandong Jiaxing, Zhejiang Province has actively launched the hydrogen energy industrial park, covering China’s major economic regions. The company has a relatively complete chain layout of hydrogen energy industry and is expected to benefit from the rapid development of hydrogen energy industry.
Shanxi Meijin Energy Co.Ltd(000723) the main business of coking has a steady profit.
According to the announcement, in the first three quarters of 2021, the company achieved a net profit attributable to the shareholders of the listed company of RMB 2.025 billion, with a year-on-year increase of 344.81%. Moreover, all the coke projects in the company’s 3.85 million ton Huasheng Chemical project have been put into operation, and the coke output is expected to increase. At present, the coke price remains relatively high, and the company’s main business is expected to contribute to steady profits.
3、 Investment advice
It is estimated that the company will achieve revenue of RMB 24105 / 19792 / 20.685 billion and net profit attributable to parent company of RMB 2.838/20.47/2.097 billion in 21-23 years. The current market value corresponding to PE in 22 / 23 years is 27 / 26 times respectively. Considering that the company has a full layout in the fuel cell field, basically covering the whole industrial chain, and covering for the first time, it is given a “recommended” rating.
4、 Risk tips:
The pledge proportion of major shareholders is high, the decline of coke price affects profits, the rise of coking coal price erodes profit space, and the construction of hydrogen energy project is less than expected.
