\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 868 China Energy Engineering Corporation Limited(601868) )
Core view
In 2021, the net profit attributable to the parent company was 6.504 billion yuan, realizing steady growth in revenue and net profit. In 2021, the company achieved a revenue of 322319 billion yuan (+ 19.23%), a net profit attributable to the parent company of 6.504 billion yuan (+ 39.26%), and a net profit not attributable to the parent company of 5.072 billion yuan (+ 37.69%); In 2021, the gross profit margin of the company was 13.16%, year-on-year -0.43pct, and the net profit margin was 2.98%, year-on-year -0.22pct, mainly due to the pressure on the profits of the industrial manufacturing sector due to the intensification of market competition and the rise of raw material prices. In the fourth quarter, the single quarter revenue was 112731 billion yuan (+ 14.83%), and the net profit attributable to the parent company was 3.144 billion yuan (+ 17.18%); The gross profit margin was 14.45%, year-on-year -1.33pct, and the net profit margin was 2.77%, year-on-year -1.38pct.
The business quality has been steadily improved, and the amount and growth rate of newly signed contracts have reached a record high. In 2021, the company’s revenue from engineering construction / survey, design and consulting / industrial manufacturing / investment and operation business was 263.92 billion yuan / 14.76 billion yuan / 28.25 billion yuan / 27.26 billion yuan respectively, with a year-on-year increase of 24% / 4% / 16% / 1%. In 2021, the company signed 872.61 billion yuan of new contracts, with a year-on-year increase of 51%, including 800.89 billion yuan of new contracts in engineering construction business, with a year-on-year increase of 46%, mainly due to the rapid growth of new energy and comprehensive smart energy, contributing 192.77 billion yuan of new contracts, with a year-on-year increase of 53%.
Cut into the field of new energy operation and describe the second growth curve. The company has the advantages of power engineering planning and consulting, survey and design, construction, investment and operation of the whole industrial chain and full life cycle services, and is expected to depict the second growth curve in the field of new energy operation. By the end of 2021, the company’s holding installed capacity was 4.6gw, including 1.4gw of wind power, 1.0gw of photovoltaic power, 0.8gw of hydropower, 1.3gw of thermal power and 0.2gw of biomass. In 2021, the company made every effort to develop new energy investment, construction and operation integration projects, and obtained 11.62gw of new energy investment and construction indicators such as Guangxi Chongzuo comprehensive energy base and Shihezi photovoltaic base in Northern Xinjiang of BINGTUAN. Combined with the company’s industrial position in the field of new energy engineering and the advantages of integrated industrial chain, we expect that the company’s new new energy holding installed capacity is expected to reach about 19gw during the 14th Five Year Plan period, By 2025, the installed capacity of new energy holdings will reach 20GW.
Risk warning: the construction of power grid consumption is less than expected; The price of new bidding projects is lower than expected; The rising price of raw materials leads to the lower than expected rate of return of the project; Increase the company’s financial interest rate; China’s epidemic and overseas geopolitical turmoil may affect construction progress and other risks.
Investment suggestion: considering the impact of China’s epidemic and overseas geopolitical turmoil, the profit forecast is slightly reduced. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 7.901/91.52/9.8 billion (the original forecast was RMB 8.161/95.93/10.465 billion), with a growth rate of 21.5% / 15.8% / 7.1%, diluted EPS of 0.19/0.22/0.24, corresponding to 12.9/11.2/10.4 times of the dynamic PE of A-Shares from 2022 to 2024, and the dynamic pb0.5% of A-Shares from 2022 to 202464 / 0.60/0.57 times; Corresponding to the dynamic PE of H shares from 2022 to 2024 is 4.7 / 4.1 / 3.8 times, and the dynamic pb0.5 times of H shares from 2022 to 202424 / 0.22/0.21 times, maintaining the “buy” rating.
