\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 868 China Energy Engineering Corporation Limited(601868) )
Core view:
Event: the company released the annual report of 2021. In 2021, the company achieved a revenue of 322319 billion yuan, a year-on-year increase of 19.23%; The net profit attributable to the parent company was 6.504 billion yuan, a year-on-year increase of 39.26%; The net profit attributable to the parent company after deduction was RMB 5.072 billion, with a year-on-year increase of 37.69%.
The main business indicators are stable and good. In 2021, the company achieved a revenue of 322319 billion yuan, with a year-on-year increase of 19.23%, mainly driven by the increase of general contracting business of new energy projects and traditional energy projects, and the increase of civil blasting and equipment manufacturing business. By sector, the revenue of survey, design and consulting, engineering construction, industrial manufacturing, investment and operation, real estate and other businesses was 147.62 263920 282.49 272.57 155.39 63.55 respectively, with a year-on-year increase of 3.94% 24.45% 16.47% 0.97% 26.88% 9.45% respectively. In 2021, the company’s net cash flow from operating activities was 8.844 billion yuan, an increase of 2.354 billion yuan year-on-year, mainly due to the expansion of business scale and the year-on-year increase of net profit; Increase the company’s advance payment and actively increase its operation. During the reporting period, the gross profit margin and net profit margin of the company were 13.16% and 2.98% respectively, with year-on-year changes of -0.49pct and -0.22pct respectively.
The amount of newly signed contracts increased, and the proportion of new energy and comprehensive smart energy increased. In 2021, the company signed 872.61 billion yuan of new contracts, with a year-on-year increase of 51%. Among them, the newly signed contract amount of engineering construction was 800.89 billion yuan, a year-on-year increase of 45.7%; The newly signed contract amount of survey, design and consulting was 11.91 billion yuan, a year-on-year increase of 4.6%; The newly signed contract amount of industrial manufacturing was 26.22 billion yuan, a year-on-year increase of 161.2%; The newly signed contract amount of other businesses was 33.59 billion yuan, a year-on-year increase of 396.4%. Among the newly signed contracts for engineering construction, the newly signed contracts for traditional energy, new energy and comprehensive smart energy, urban construction, comprehensive transportation and other were 2018.8 1927.7 1679.1 145.17 93.16 billion yuan respectively, with a year-on-year increase of 21.7% 53.2% 11.3% 229.6% 47.7% respectively. The newly signed contracts for new energy and comprehensive smart energy accounted for 24.1%, an increase of 1.2pct over the previous year. The company takes the development of new energy as the top priority of its work throughout the year and actively seize the new energy market.
The construction of green and low-carbon energy brings new opportunities. China has accelerated green and low-carbon energy development and implemented renewable energy substitution. It is estimated that the total investment in China’s power sector will exceed 1 trillion yuan in 2022. In the field of power grid construction, there is still a large market in UHV transmission channels, main grid construction in various provinces and regions and distribution network construction. It is estimated that the average annual investment scale of power grid during the 14th Five Year Plan period is about 580 billion yuan, an increase of 17.15% over 2021. The company is a national team of traditional energy power construction, representing the highest level in the world in the field of thermal power construction, with a construction market share of more than 30% in the field of hydropower projects and more than 50% in large hydropower projects. It undertakes the survey and design tasks of almost all large clean energy transmission channel projects. In the future, with the increase of the proportion of clean energy power generation and the promotion of power grid construction, the development of the company is expected to usher in new opportunities.
Investment suggestion: it is estimated that the company’s revenue from 2022 to 2023 will be 402998/491535 billion yuan respectively, with a year-on-year increase of 25% / 22%, the net profit attributable to the parent company will be 8 / 9.68 billion yuan, with a year-on-year increase of 23% / 21%, EPS per share will be 0.19/0.23, corresponding to 12.4/10.3 times of the current share price respectively, maintaining the “recommended” rating.
Risk tip: the risk of decline in fixed asset investment in power engineering; Risk of covid-19 epidemic affecting project progress; The risk that the recovery of accounts receivable is less than expected.
