\u3000\u3 Shengda Resources Co.Ltd(000603) 693 Jiangsu New Energy Development Co.Ltd(603693) )
Events
The company released its annual report for 2021. In 2021, the company realized an operating revenue of 1.857 billion yuan, a year-on-year increase of 20.04%; The net profit attributable to the parent company was 307 million yuan, a year-on-year increase of 99.59%.
High quality resources contribute to high performance growth, both scenery and scenery, and the future growth space can be expected
In 2021, the company’s wind power business achieved a revenue of 1.367 billion yuan, a year-on-year increase of 55.22%; Contributed a gross profit of 918 million, a year-on-year increase of 75.19%. The reason is that many new projects have been put into operation and the wind resources are relatively excellent: the installed capacity of the company’s wind electric control unit reached 1.34 million kW in 2021, a year-on-year increase of 34.13%; The average utilization hours reached 2609 hours, with a year-on-year increase of 569 hours, and the fan availability rate reached 99.85%.
Offshore wind power: relying on the advantages of construction resources in Jiangsu Province, the company is the first to layout offshore wind power projects.
Rudong h2 offshore wind power project was successfully put into operation, and the installed capacity of Haifeng holdings was increased by 350000 kW;
Acquire 40% equity of Datang Guoxin Binhai offshore wind power generation Co., Ltd., and the installed capacity of offshore wind power rights and interests reaches 300000 kW;
The 850000 kW offshore wind power joint venture of Fengzhong Power Co., Ltd.
Photovoltaic power generation: the company’s development ideas have changed, and the scale of photovoltaic power generation business is expected to expand significantly.
Focus on finding and developing idle resources in the province, and several projects such as Jiangsu Lianyungang Port Co.Ltd(601008) Xinba 200MW agricultural light complementary project are advancing in an orderly manner;
Actively arrange high-quality resources in UHV related areas outside the province, and Henan Anyang 100MW photovoltaic power generation project and Pinglu 70mW photovoltaic power generation project are expected to be implemented.
The biomass power generation business is planned to be shut down, and the performance burden will be removed soon
Due to the high price of biomass fuel, the difficulty of acquisition, the decline of quality and other factors, after the end of the electricity price subsidy, the on grid electricity price income of biomass power generation project is not enough to cover the fuel cost, so it is no longer of economic value to continue operation. It is planned to choose the machine to shut down when the reasonable utilization hours run out. Considering the low gross profit margin of biomass power generation business and the drag of asset impairment on historical performance, the business structure of the company is expected to be significantly optimized after the shutdown of the business and boost the high growth of performance.
Profit forecast and Valuation: the company’s wind and solar power generation business is advancing hand in hand and expanding rapidly. Considering the decline in profitability of biomass power generation business and the accelerated pace of shutdown, the forecast of net profit attributable to the parent company in 20222023 is reduced from 891 and 984 million yuan to 800 and 972 million yuan. The net profit attributable to the parent company in 24 years is expected to be 1.099 billion yuan, corresponding to 15.51, 12.76 and 11.29 times of PE, maintaining the “buy” rating.
Risk tip: due to the change of new energy policy in Jiangsu Province, the power consumption capacity of the project site is insufficient, the construction of new photovoltaic projects is less than expected, the operation of new offshore wind power projects is less than expected, and the promotion of successful projects is less than expected
