\u3000\u30003 Beijing Spc Environment Protection Tech Co.Ltd(002573) 00257)
Event: on March 28, 2022, the company issued the announcement on the commercial operation of phase I power station (5 MW) of ptsokoria geothermal company in Indonesia. The SGI project has completed the rated capacity test of phase I power station at 10:51 am local time on March 28, 2022.
Comments:
The first phase of the “SGI” project was successfully connected to the grid. The power station is one of the smallest independent geothermal power stations in Indonesia. In 2021, Zhejiang Kaishan Compressor Co.Ltd(300257) acquired ptsokoria geothermal company (hereinafter referred to as “SGI”) through its subsidiary in August 2016. The SGI project has a total of 30 MW and is constructed in four phases. The PPA duration is 30 years and the power purchase price is 12.5 cents / kWh. SGI project completed the rated capacity test of phase I power station on March 28, 2022 local time, and the outgoing power is 4.718 MW. The power station was put into commercial operation at 11 a.m. local time on March 28, 2022, and the annual electricity revenue is expected to be about US $5 million. SGI phase I power station is one of the smallest independent geothermal power stations in Indonesia. At present, small geothermal power stations less than 10MW are still in the experimental stage in Indonesia. The smooth grid connection of SGI project plays an exemplary role in developing distributed geothermal power stations on remote islands in eastern Indonesia and providing efficient, economical and reliable new energy power, which is conducive to the follow-up development of the company’s geothermal business and the development of the company’s complete set of power generation equipment business.
The world’s first “double heat source Orc expansion generator set” was put into operation, and the company’s geothermal power generation technology was reflected again. The “steam + brine” double heat source organic working medium Rankine cycle expansion (ORC) generator set independently developed and manufactured by Zhejiang Kaishan Compressor Co.Ltd(300257) in SGI project can receive geothermal steam and geothermal brine at the same time. The steam thermal efficiency of geothermal brine is high, which can improve the overall power generation efficiency of the unit. Kaishan’s double heat source Orc expansion generator set reflects the technical advantages of the company’s power generation equipment with high power generation efficiency and can adapt to low-power power power generation, and can effectively develop other geothermal resources with low enthalpy and low wellhead pressure in the world.
The geothermal resources in hand are abundant, and the geothermal business has entered the harvest period. The company began to set foot in the field of waste heat recovery in 11 years, began to contact geothermal power generation projects in 13 years, started geothermal power generation in 19 years, and increased its geothermal power generation revenue from 59 million to 196 million in 20 years. At present, the company has many geothermal power generation projects such as Indonesia smgp and wabuska in the United States, of which Indonesia GMGP phase I and phase II have been stably connected to the Internet. According to the announcement information on February 7, the company will pay a consideration of US $60 million to acquire 100% equity of inter investment Pte.Ltd. held by the seller, so as to obtain the top geothermal resources of the target company, with a total of 7 projects and a power generation potential of 990 MW. The company is constantly obtaining high-quality geothermal resources.
Breakthroughs have been made in high-end large compressor equipment, opening up growth space in overseas markets. The technology of high-end compressors such as oil-free compressors and centrifugal compressors in China is relatively backward. Most enterprises are in the stage of research and development or early promotion. Zhejiang Kaishan Compressor Co.Ltd(300257) has made a breakthrough in the field of large and high-end compressors. Centrifugal compressors have achieved a certain market and are competing with international leaders such as atlas. The company has obvious competitive advantages in screw compressors in China and is vigorously developing the overseas market. In 2020, the overseas business income reached 795 million yuan, accounting for 26% of the company’s total income. At the beginning of 2022, the company’s overseas business maintained a good development momentum and is expected to continue to expand the scale of overseas revenue.
Profit forecast and investment rating: we predict that the net profit from 2021 to 2023 will be 314 million yuan, 544 million yuan and 861 million yuan respectively, and the corresponding EPS will be 0.32 yuan / share, 0.55 yuan / share and 0.87 yuan / share respectively, corresponding to 43 times, 25 times and 16 times of the current share price PE respectively. Maintain the company’s “buy” rating.
Risk factors: deterioration of macro environment; Project financing is less than expected; Increase in financial expenses and risk of exchange rate changes.
