\u3000\u3000 Enn Natural Gas Co.Ltd(600803) (600803)
Event: the company released the performance forecast for 2021. In the 21st year, the company expects to realize the net profit attributable to the parent company of RMB 3.90-4.32 billion, with a year-on-year increase of 85% – 105%, and it is expected to deduct the net profit not attributable to the parent company of RMB 3.27-3.81 billion, with a year-on-year increase of 151% – 192%. Among them, Q4 is expected to realize a net profit attributable to the parent company of RMB 690-1.11 billion in a single quarter, with a year-on-year change of – 20% ~ + 30% and a month on month change of – 39% ~ – 2%.
Comments:
The direct selling gas and coal business has made great efforts, and the performance has increased significantly year-on-year in 21 years: in 21 years, under the guidance of economic recovery and “double carbon” policy, the company’s main business has grown steadily, of which the direct selling gas business (including international import and sales, international trade, etc.) is expected to achieve a net profit attributable to the parent company of 680 million yuan, a year-on-year increase of + 409%; The coal business is expected to realize a net profit attributable to the parent company of RMB 930 million, a year-on-year increase of + 153%. In addition, the company confirmed the investment loss of – 220 million yuan (Santos equity has been listed in 20 years), which affected the investment income in 21 years, an increase of 220 million yuan over the same period of last year. Exchange gains, gains from derivative financial instruments and equity disposal increased by 60 million yuan, 290 million yuan and 70 million yuan respectively over the same period of the previous year. The direct selling gas and coal businesses have made efforts at the same time, with a year-on-year growth rate of more than 150%, and the company’s performance has increased significantly in 21 years.
ENN energy is consolidated to open up the downstream sales network of natural gas: its subsidiary ENN energy has a strong natural gas distribution network and related infrastructure downstream of the natural gas industry chain. After the company incorporated ENN energy into the scope of merger, the industrial chain was further opened. By the third quarter of 2021, the company’s natural gas retail volume had reached 18.03 billion cubic meters, a year-on-year increase of 19.9%. Among them, the gas volume of industrial and commercial users increased strongly, reaching 14.356 billion cubic meters, a year-on-year increase of 23.3%. In terms of users, the gas supply for newly developed industrial and commercial users was 16.6 million cubic meters, a year-on-year increase of 46.0%, and the engineering installation of 1.88 million newly developed household users was completed, a year-on-year increase of 16.8%. Asset restructuring helps to enhance the coverage of the company’s natural gas distribution network and enhance the market share of urban fuel.
It is planned to acquire new Austrian Zhoushan and build a new clean energy ecology: Enn Natural Gas Co.Ltd(600803) it is planned to acquire 90% equity of new Austrian Zhoushan by issuing shares and paying cash, and place LNG terminal assets with high synergy, which is of great significance to the integrated layout of the company’s industrial chain. The phase I project of Zhoushan terminal was successfully put into operation in 2018, and the phase II project was completed and put into trial operation in June 2021. 1、 The total annual actual treatment capacity of phase II project is expected to reach 8 million tons, and the long-term annual treatment capacity can reach 10 million tons. The company can play the fulcrum role of Zhoushan terminal, carry out LNG ship filling and other new businesses, and further improve the profit level. In addition, in terms of gas source, the company signed a long-term LNG purchase and sales agreement with chenier energy in October 2021. Since July 2022, chenier will supply about 900000 tons of LNG to the company by means of FOB every year for 13 years. Signing the agreement helps the company reduce the risk of purchase price fluctuation.
As a result, the company’s net profit in 2021-04 is expected to be increased by 4.7 billion yuan, which is higher than that in 2021-04, and the company’s net profit in 2021-04 is expected to be 4.7 billion yuan, which is equivalent to that in 2021-04, and the company’s net profit in 2021-04 is expected to be increased by 47.4%, respectively, Maintain the “buy” rating.
Risk warning: the purchase price of natural gas fluctuates greatly; The acquisition progress of ENN Zhoushan was less than expected.
