\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 163 Zhongmin Energy Co.Ltd(600163) )
Report summary
Excellent pure new energy power generation operators are rooted in the forefront of Fujian’s profitability industry. The company is a state-owned listed company rooted in Fujian. It is a pure new energy power generation operator focusing on wind power generation, supplemented by photovoltaic power generation and biomass power generation. At present, the company has reserved a number of wind and electricity resources projects in coastal areas, Xinjiang, Heilongjiang and other regions of Fujian Province, with strong sustainable development ability, rich construction and operation experience, professional management team, high production and operation efficiency and good corporate brand image. The company adheres to the “two legs” parallel of physical operation and capital operation, the “two ways” of provincial development and going global development, and the combination of independent development and selective M & A to make renewable energy power generation bigger and stronger.
Under policy guidance, the superimposed cost decreased rapidly, and the profitability of wind power projects continued to improve. With the influence of factors such as the large-scale of wind turbines and the improvement of operation and maintenance management level, onshore wind power has achieved parity on the Internet, and offshore wind power is about to enter the era of parity. The large-scale fan increases the sweeping area of the generator set. With the increase of the tower, the effective wind speed also increases, and the equivalent available time increases, which promotes the efficiency of the generator set, increases the power generation, and improves the profitability of the wind power operator. In addition, China’s environmental protection requirements are gradually tightened, and emission control enterprises have the demand to buy CCER and green power. The perfect carbon trading and green power trading market provides opportunities for new energy power generation companies to increase profits. In the future, wind power construction will continue to accelerate, and wind power operation will shift from subsidy driven to market driven. According to our calculation, the installed capacity of wind power is expected to reach 536 million kW in 2025, and the installed scale of wind power has large growth space.
Fujian is rich in wind resources, and its profitability is at the forefront of the industry. The offshore wind power resources in Fujian Province are in the forefront of the country. The annual average effective wind energy hours in Fujian coastal areas reach 7837.3h, and the annual average wind speed is more than 7.5m/s. The company’s wind power projects are mainly distributed in Fujian and Heilongjiang. By 2021, the company’s total installed capacity of wind power has reached 907300 kW. Among them, the installed capacity of offshore wind power and onshore wind power is 296000 kW and 61300 kW respectively. Thanks to the successive grid connected power generation of wind power projects in the early stage, the company achieved an operating revenue of 1.001 billion yuan in the first three quarters of 2021, a year-on-year increase of 50.90%; The net profit attributable to the parent company was 390 million yuan, a year-on-year increase of 94.92%.
The investment projects are accelerated to be connected to the grid, and the Pinghai Bay phase III project is injected at the right time. In 2021, the gradual integration of Qingfeng wind farm phase II, Damaoshan wind farm and Heping Bay offshore wind farm phase II led to a significant increase in the company’s overall power generation, driving the company’s performance. Located in Fujian, the company has obvious advantages in geographical resources, high utilization rate of wind energy, low cost of kilowatt hour power in the country, and the profit of kilowatt hour power ranks first in the same industry. The operation of Pinghai Bay phase III project in the future will greatly increase the company’s power generation and promote the company’s profitability to a higher level.
Investment suggestion: several wind power projects of the company have been connected to the grid successively, and the operation and maintenance sales volume has been improved based on its excellent technical level. Since 2021, the power generation has continued to increase significantly, promoting the continuous growth of the company’s performance. Looking forward to the future, with the offshore wind power assets of the company’s controlling shareholder injected into the listed company, the company’s offshore wind power installed capacity is expected to continue to grow, driving the rapid growth of performance. It is estimated that the operating revenue of the company from 2021 to 2023 will be RMB 1.814 billion, RMB 2.280 billion and RMB 2.695 billion respectively, with a year-on-year increase of 44.85%, 25.71% and 18.21% respectively; The net profit attributable to the parent company was 702 million yuan, 970 million yuan and 1116 million yuan respectively, with a year-on-year increase of 44.56%, 38.06% and 15.12% respectively; EPS is 0.37, 0.51 and 0.59 respectively, and the corresponding PE is 21.02, 15.23 and 13.23 times respectively. For the first time, give a “buy” rating.
Risk warning: the construction progress of Haifeng project is less than expected, the progress of asset injection is less than expected, the risk of delayed payment of renewable subsidies, and the risk of delayed information or delayed update of the public data used in the research report.
