\u3000\u30 Shenzhen Fountain Corporation(000005) 52 Gansu Jingyuan Coal Industry And Electricity Power Co.Ltd(000552) )
Operating income and net profit attributable to parent company increased significantly year-on-year, reaching a new high since listing. The company released the annual performance report for 2021. In 2021, the annual operating revenue was 4.841 billion yuan, with a year-on-year increase of 31.30%. The net profit attributable to shareholders of listed companies was 724 million yuan, with a year-on-year increase of 62.66%. The net profit excluding non recurring profits and losses attributable to shareholders of listed companies was 705 million yuan, with a year-on-year increase of 62.02%, a new high since listing, and the basic earnings per share was 0.32 yuan, The net operating cash flow was 2.392 billion yuan, a year-on-year increase of 274.51%. The overall coal price rose sharply last year, and the company’s performance met expectations.
Gansu Province is a leading state-owned power coal enterprise, and the output of technological transformation and asset injection is expected to increase Gansu Jingyuan Coal Industry And Electricity Power Co.Ltd(000552) is the second largest coal production enterprise in Gansu Province and the first listed coal enterprise in Northwest China. The total approved coal production capacity reached 10.54 million tons / year, and the coal production and sales volume reached 878 / 9.42 million tons in 2021. The company’s main customers are power, chemical, metallurgy, building materials and other related industrial companies in the province, accounting for more than 84%, with obvious geographical advantages. The proportion of Changxie coal reaches 60%, which is conducive to the stable operation of the company. Wangjiashan coal mine and Weijiadi coal mine continue to promote technical transformation, and the output is expected to gradually increase to the approved capacity level in the later stage. Jingtai coal industry, a holding subsidiary, currently has a coking coal mine under construction, with an approved capacity of 900000 tons / year, and the proportion of rights and interests reaches 60%. It is expected to be completed and put into operation this year. In addition, Gansu coal resources development Co., Ltd., the second largest shareholder of the company, expects to inject 5.4 million tons of high-quality coal production capacity in the next 2-3 years, which will further enhance the capacity scale of the company and thicken the profit level of the company.
The integration of coal and electricity contributes to the stability of operation, and new energy will become the highlight of business in the future. The subsidiary Baiyin thermal power owns 2 × 350MW supercritical coal-fired air-cooled cogeneration units generated 3.573 billion kwh in 2021, with a year-on-year increase of 9.40%. The integrated operation of coal and electricity effectively increased the operation stability of the company. In November 2021, the company announced the establishment of a joint venture Jinghong new energy (the company holds 60%) and invested in the construction of Gansu Jingyuan Coal Industry And Electricity Power Co.Ltd(000552) 28mw photovoltaic self use project, which will help the company reduce power costs, improve operating efficiency and explore the development of new energy. In the future, the company plans to develop agricultural light complementary clean energy projects in Jingyuan mining area. At present, the total installed capacity is planned to reach 1GW, which is expected to become the highlight of the company’s future performance growth.
Profit forecast and investment rating: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 8.2/10.4/1.03 billion yuan respectively, and the corresponding PE of the current stock price is 11.3/9.0/9.0 times. For the first time, the company was given an overweight rating.
Risk tip: macroeconomic growth is less than expected; Coal prices have fallen sharply; Slow progress of projects under construction and less than expected asset injection.
