\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 011 Huaneng Power International Inc(600011) )
Event:
Huaneng Power International Inc(600011) released the annual report of 2021:
1) in 2021, the company achieved a revenue of 204605 billion yuan, a year-on-year increase of 20.75%, and a net profit of -10.264 billion yuan, compared with 4.565 billion yuan in the same period of last year;
2) 2021q4: the company achieved a revenue of 59.6 billion yuan, an increase of 25.25% year-on-year, and a net profit of -11.047 billion yuan, compared with -4.568 billion yuan in the same period of last year.
Revenue: both volume and price rose, and the revenue of scenery business increased by 47.52% year-on-year. In 2021, the company’s revenue increased by 20.75%, mainly due to the annual increase of 13.23% in electricity sales and the year-on-year increase of 4.41% in domestic average on grid electricity price. In terms of business, the thermal power business realized a revenue of 177179 billion yuan, a year-on-year increase of 18.75%, and the kWh revenue was 0.436 yuan / kWh, a year-on-year increase of 6.2%; The revenue of scenery business was RMB 12.153 billion, a year-on-year increase of 47.52%, accounting for 5.94% of the revenue, and the kWh revenue was RMB 0.503/kwh, a year-on-year increase of 2.62%.
Profit: the sharp rise in coal prices dragged down the performance, and the annual gross profit of scenery business increased by 59% to 7.4 billion yuan.
1) 2021: the company lost 10.264 billion yuan, mainly because the cost of coal increased by 60.85% to 770.67 yuan / ton. In terms of gross profit, in 2021, the total gross profit of the company was -676 million yuan, of which the gross profit of thermal power business was -10.86 billion yuan, up from 22.099 billion yuan in the same period of last year, and the gross profit of kWh was -0.027 yuan / kWh, up from 0.061 yuan / kwh in the same period of last year; The gross profit of scenery business was 7.441 billion yuan, a year-on-year increase of 58.59%, and the gross profit of kWh was 0.308 yuan / kWh, a year-on-year increase of 10.31%.
2) 2021q4: the company’s net profit attributable to the parent company was -11.047 billion yuan, which was higher than the net profit attributable to the parent company after deduction (- 12.77 billion yuan), mainly due to the increase of government subsidies (in 2021, Jining Power Plant received 707 million yuan of shutdown standby compensation, 197 million yuan of coal guarantee fund, etc.).
Cash flow: the net cash flow from operating activities decreased significantly, and the net cash flow from financing activities reached a record high.
1) significant increase in inventory + performance loss, and significant decrease in operating net cash flow. In 2021, the company’s net operating cash flow was 6.033 billion yuan, a significant decrease of 36.017 billion yuan compared with 42.05 billion yuan in the same period of last year, of which the net operating cash flow in 2021q4 was – 16.762 billion yuan and 14.81 billion yuan in the same period of last year. The sharp drop in operating net cash flow is mainly due to: first, the inventory increased by 154.82% to 16.824 billion yuan (under the background of rising coal price, some power plants supplemented coal inventory to cope with the peak of power consumption and meet the requirements of supply guarantee); Second, the company lost 11.047 billion yuan in 2021q4.
2) the asset liability ratio increased 7pct, and the net cash flow from financing activities reached a record high. In 2021, the net cash flow from financing activities of the company reached 39.767 billion yuan, up 38.248 billion yuan from 1.519 billion yuan in 2020, a record high. The asset liability ratio increased by 7.01 PCT to 74.72% year-on-year, and the interest bearing liability ratio increased by 3.52 PCT to 57.83%.
The total capital expenditure increased slightly year-on-year, and the inclination of photovoltaic investment increased significantly. In 2021, the company’s wind power and photovoltaic installed capacity increased by 2.4gw and 0.8gw respectively, and the cumulative installed capacity at the end of the year was 10.54gw (including 2.01gw of sea wind) and 3.31gw respectively, reaching a total of 13.85gw, accounting for 11.67% of the company’s controllable power generation installed capacity. In 2022, the planned capital expenditure investment of the company was 45.825 billion yuan, a year-on-year increase of 4.4%. Among them, the planned investment in wind power was 12.649 billion yuan, a year-on-year decrease of 37.5%; The planned investment in photovoltaic is 18.609 billion yuan, a year-on-year increase of 160.7%; The planned investment in thermal power was 6.046 billion yuan, a year-on-year decrease of 20%.
Profit forecast: under the background of the continuous implementation of the policy of controlling coal prices and dredging the cost of thermal power plants, the profit of the company’s thermal power business is expected to be repaired; The company’s new energy transformation in the 14th five year plan is expected to accelerate and further improve the company’s fundamentals. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 8.151/98.58/11.223 billion respectively, corresponding to 15.87/13.12/11.53 times of PE from 2022 to 2024, maintaining the “buy” rating.
Risk warning: policy promotion is not as expected; The new installed capacity is less than expected; Coal prices rose sharply; Electricity price reduction; Intensified industry competition, etc.
