\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 985 China National Nuclear Power Co.Ltd(601985) )
The company is the only nuclear power operation platform under CNNC group. The company’s business scope covers the development, investment, construction, operation and management of nuclear energy, wind energy, Cecep Solar Energy Co.Ltd(000591) and other clean energy projects and supporting facilities. In 2021, the company’s revenue mainly comes from nuclear power, followed by wind and new energy power generation business, and the third largest business is agile end industry. The company is actively exploring the breakthrough of agile end industry. At the end of 2020, after the acquisition of CNNC Huineng, the company became the listing platform of CNNC new energy, and the installed capacity of new energy increased significantly. The company is the only nuclear power operation platform under CNNC group. The shareholders have strong resources and capital advantages, which is conducive to the development of the company’s scenery clean energy business. At present, the company is actively carrying out new energy transformation, and the installed capacity of Fengguang new energy power is growing rapidly.
The performance has increased steadily, and nuclear power is expected to rise both in volume and price. In 2021, the company achieved an operating revenue of 62.367 billion yuan, a year-on-year increase of 19.30%; The net profit attributable to the parent company was 8.037 billion yuan, a year-on-year increase of 34.05%. The growth of the company’s revenue and performance is mainly due to the increase of the company’s power generation. The installed capacity of the company’s nuclear power continues to grow. In 2021, the capacity expansion of Fuqing nuclear power unit 5, Tianwan nuclear power unit 6, Qinshan nuclear power unit 1 and Qinshan nuclear power plant unit 1 increased by 2.32gw, and the utilization hours of nuclear power increased compared with last year; In terms of electricity price, the market transaction electricity price is rising, and the market-oriented electricity price of nuclear power is expected to be further improved in the future, promoting the growth of the company’s nuclear power business income; In addition, the overall cost of the company’s new nuclear power units is controllable, and there is little pressure on depreciation and financial expenses after they are put into operation.
Actively transform new energy, and the proportion of new energy installed capacity continues to increase. The company will accelerate the development of wind and solar new energy power generation business, increase the proportion of new energy installed capacity and increase the wind and solar power generation by a large margin. According to the company’s announcement, as of 2021, the company’s new energy installed capacity in transit is 8.87gw, including 2.63gw of wind power, accounting for 8.38% of the company’s total installed capacity, and 6.24gw of photovoltaic, accounting for 19.85% of the company’s total installed capacity; In 2021, the company generated 9.514 billion kwh of new energy power, including 4.549 billion kwh of wind power, a year-on-year increase of 38.99%, and 4.965 billion kwh of photovoltaic power, a year-on-year increase of 109.76%. The proportion of Fengguang’s revenue continues to increase. It is expected that with the gradual production of new energy assets, the new energy business will exert its strength and bring new profit growth points to the company.
Investment suggestion: as a leading enterprise in the China National Nuclear Power Co.Ltd(601985) field, the company’s installed capacity is in a leading position. In the future, under the background of the normalization of nuclear power approval and the rise of nuclear power price, the company’s nuclear power business is expected to grow steadily. At the same time, as the new energy listing platform of CNNC group, the installed capacity of Fengguang new energy will maintain a rapid growth trend in the future and contribute new performance increment to the company. It is estimated that the operating revenue of the company from 2021 to 2023 will be 62.367 billion yuan, 69.897 billion yuan and 74.186 billion yuan respectively, with a year-on-year increase of 19.30%, 12.07% and 6.14% respectively; The net profit attributable to the parent company was 8.037 billion yuan, 10.168 billion yuan and 11.321 billion yuan respectively, with a year-on-year increase of 34.05%, 26.53% and 11.33% respectively; EPS is 0.43, 0.54 and 0.60 respectively, and the corresponding PE is 18.39, 14.53 and 13.05 times respectively. For the first time, give the company a “buy” rating.
Risk tip: there is a downward risk of electricity price, the government’s nuclear power approval is slower than expected, the project progress is less than expected, and the public data used in the research report may have the risk of information lag or untimely update.
