\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 956 China Suntien Green Energy Corporation Limited(600956) )
Event: the company released its annual report for 2021. In 2021, the company realized an operating revenue of 15.99 billion yuan, a year-on-year increase of 27.8%; The net profit attributable to the parent company was 2.16 billion yuan, a year-on-year increase of 43.0%.
Renewable energy: "installed capacity growth + high-quality resources" contribute to high performance growth
In 2021, the company's wind (photovoltaic) power generation business achieved an operating revenue of 6.15 billion yuan, a year-on-year increase of 38.3%; The gross profit contributed 3.77 billion yuan, a year-on-year increase of 39.0%. The reasons are as follows: on the one hand, several wind power projects of the company have been put into operation. In 2021, the cumulative capacity of projects converted to commercial operation reached 5.363 million KW, a year-on-year increase of 21.9%; On the other hand, thanks to the high-quality wind resources in the project site, the average utilization hours of the company's holding wind farm reached 2501 hours in 2021, an increase of 81 hours year-on-year. With the dual assistance of "installed capacity growth + high-quality resources", the power generation of the company's wind farm in 2021 reached 13.47 billion kwh, a year-on-year increase of 36.3%. The significant increase in power generation led to a high increase in performance. In terms of project reserves, in 2021, the company's approved and under construction wind power project capacity reached 2.092 million KW, and the agreed wind capacity reached 49.103 million KW. The sufficient resource reserves are expected to help the company's wind power business grow steadily in the long term.
Natural gas: the market has expanded rapidly relying on pipeline advantages, driving the steady growth of gas sales
In 2021, the company has operated 760475 kilometers of natural gas pipelines, 25 off load stations and 19 gate stations. All types of infrastructure projects have maintained growth, and the natural gas transmission network has been further improved. Relying on the advantages of pipeline length and gas transmission network, the company's middle and downstream natural gas market continues to expand, with 50082 new users in 2021 and 480936 users in total. With the rapid expansion of the market, the company's gas sales increased steadily. In 2021, the total gas sales reached 3.808 billion cubic meters, with a year-on-year increase of 8.03%. The double increase in volume and price led to a significant increase in the revenue of the natural gas sector. In 2021, the company achieved a natural gas sales revenue of 9.52 billion yuan, with a year-on-year increase of 21.62%. In terms of gas sales structure, the company's wholesale gas volume was 2.081 billion cubic meters in 2021, a year-on-year decrease of 0.51%; Retail gas volume was 1.632 billion cubic meters, a year-on-year increase of 20.81%. The proportion of retail gas volume continues to increase, driving the gross profit level of the natural gas sector, and the profitability of the company's natural gas business is expected to be further improved.
Tangshan LNG project is generally progressing smoothly and is expected to be put into operation on schedule
In terms of the main works, in the first stage, the four storage tanks have completed the air pressure lifting, the inner tank welding has been completed by 75%, the installation unit has entered the site for steel structure installation, and several storage tanks in the second stage have also entered the construction stage; In terms of export pipelines, the main body of Caofeidian Baodi section and Baodi Yongqing section have been welded. Tangshan LNG project is progressing smoothly and is expected to be put into operation on schedule.
Profit forecast and Valuation: considering the steady growth of the company's two main business scales and the steady progress of the superimposed Tangshan LNG project, it is estimated that the company's net profit attributable to the parent company from 2022 to 2023 will be 2.31 and 3 billion yuan, corresponding to 24.57 and 18.91 times of PE, maintaining the rating of "overweight".
Risk tips: the price of natural gas fluctuates, the construction or operation of Tangshan LNG project is less than expected, the new energy policy changes in the project location, the promotion of reserve projects is less than expected, and the power consumption capacity of the project location is insufficient.
