\u3000\u30 Ping An Bank Co.Ltd(000001) 55 Sichuan New Energy Power Company Limited(000155) )
Event overview
On April 20, 2022, the company released its annual report for 2021. During the reporting period, the company achieved an operating revenue of 4.408 billion yuan, a year-on-year increase of 18.54%, and a net profit attributable to the parent company of 340 million yuan, a year-on-year increase of 27.60%.
On April 20, 2022, the company released the first quarter report of 2022. During the reporting period, the company achieved an operating revenue of 733 million yuan, a year-on-year decrease of 55.34%, and a net profit attributable to the parent company of 219 million yuan, a year-on-year increase of 20.33%.
Analysis and judgment:
The annual performance was in line with expectations, and the new energy power generation business grew steadily
In 2021, the company achieved an operating revenue of 4.408 billion yuan, a year-on-year increase of 18.54%, and a net profit attributable to the parent company of 340 million yuan, a year-on-year increase of 27.60%. The performance was basically in line with expectations. The company’s performance grew steadily, mainly due to the continuous growth of power sales business and the consolidation of solid waste business. In January 2022, the company increased its capital to chuanneng environmental protection by 803 million yuan, and its shareholding in chuanneng environmental protection increased from 51% to 70.55%. In 2021, the company achieved power sales business and revenue of 1.539 billion yuan, with a year-on-year increase of 44.88%. During the reporting period, the company achieved power generation of 2.387 billion kwh, a year-on-year increase of 40.19%, and power sales of 2.33 billion kwh, a year-on-year increase of 40.66%. According to the disclosure of the company’s annual report, it is mainly the company’s damianshan wind power phase III project, Huidong DuGe phase I wind farm and meigujing yetexi wind farm, with a total of 290000 kW, which were put into operation in January, September and December 2020 respectively, and realized the incremental contribution of capacity climbing in 2021. In 2021, the company successively put into operation and connected to the grid phase I of Meigu samanetto and Huidong Tangtang wind farm, with a total of 175000 kW, which is expected to contribute to the increment in 2022. At the same time, the company’s capacity under construction is 232000 kW and the approved project is 160000 kw, ensuring the steady growth of the company’s new energy power generation business in the future. In the first quarter of 2022, the company achieved an operating revenue of 733 million yuan, a year-on-year decrease of 55.34%, and a net profit attributable to the parent company of 219 million yuan, a year-on-year increase of 20.33%. The decrease in operating income was mainly due to the termination of the company’s comprehensive new energy business. The gross profit margins of the comprehensive new energy business in recent three years were 2.28%, 1.15% and 1.43% respectively, with little profit contribution. Profit increased year-on-year, mainly due to the operation of Tangtang, samanato wind power project, Changyuan phase II waste power generation and other projects, which contributed to the increase of power sales revenue, and the revenue of power sales (including waste power generation) increased by 27.71% year-on-year.
The performance of Dingsheng lithium industry became positive and actively promoted the construction of Lijiagou project
According to the company’s announcement, on February 1, 2021, the company held the first extraordinary general meeting of shareholders in 2021, reviewed and approved the proposal on the liquidation of lithium industry fund, agreed to liquidate the lithium industry fund, and the company directly held 25.5% equity of Dingsheng lithium (the scope of the company’s consolidated statements has not changed). On April 25, 2021, the company completed the delivery of 25.5% equity of Dingsheng lithium. In addition, the company is entrusted to manage the 25.5% equity of Dingsheng lithium industry jointly held by the group company and chuanneng capital. The major shareholder Sichuan energy investment promises to transfer the equity to the company after the performance of Dingsheng lithium industry meets the requirements of the listed company. According to the disclosure in the annual report, Dingsheng lithium achieved a net profit of 104221 million yuan in 2021. According to our judgment, according to the previous commitment of major shareholders, it is expected that the listed company will soon grasp the control of Dingsheng lithium. On February 24, 2022, Dingsheng lithium signed an investment agreement for 30000 ton basic lithium salt project with de’a Industrial Park. The 30000 ton basic lithium salt project of Sichuan energy investment Dingsheng lithium industry has a total investment of 1.5 billion yuan to build a 30000 ton basic lithium salt production line. De’a Industrial Park is an industrial park determined by Deyang and ABA. The lithium salt processing project implemented by the company is expected to prepare for concentrate processing after Lijiagou mine is put into operation. As of the annual report period, the company has accelerated the construction progress of Lijiagou project. According to the disclosure of the annual report: 1) shaft and roadway engineering: 7308m has been excavated in total, 43% of the excavation volume has been completed, and has been excavated to the center of No. I ore body in the center of the mining area. At present, the shaft and roadway project has met the conditions of capital construction and ore belt. 2) Mining and beneficiation works and tailings pond works have completed the outward transportation of earthwork at the mining industrial site and the excavation and transportation of earthwork at the crushing and grinding industrial site, and the piling of grinding foundation and drilling of flotation industrial site are being carried out; The flood discharge tunnel of the tailings pond has been excavated 1480m in total. 3) The construction of auxiliary production facilities and living facilities, and the construction, widening and reinforcement of roads outside the mine (with a total length of 14km) have been basically completed, which basically meets the needs of mine construction; The new access road (5336m in total, including 1120m tunnel) is fully connected; The main body of the comprehensive building and accommodation building in the office and living area of the stope has been completed, and the decoration is coming to an end. In addition, before the project is put into operation, the company will actively explore various ways to make effective use of the shaft and roadway infrastructure mine and strive to realize the income of lithium mine in advance.
Participate in Mabian phosphate rock project and look forward to follow-up cooperation
In order to accelerate the construction of Sichuan New Energy Power Company Limited(000155) “new energy power generation + energy storage” industry and promote the company’s strategic layout of the whole industry chain of lithium-ion power batteries, on October 28, 2021, the company announced that it planned to jointly invest in the establishment of Sichuan shuneng mineral Investment Co., Ltd. with Sichuan Road & Bridge Co.Ltd(600039) , Byd Company Limited(002594) and Hefeng state owned assets Co., Ltd. of Mabian Yi Autonomous County to comprehensively develop the phosphate resources and lithium iron phosphate project in Mabian county, The shareholding ratio of each party is 20%, 67%, 1% and 12% respectively. The company plans to appoint one director and one supervisor to the joint venture. At the same time, the company enjoys the priority distribution right of phosphate rock and products according to the proportion of capital contribution. Meanwhile, Sichuan New Energy Power Company Limited(000155) plans to transfer 5% equity of Sichuan energy investment Lithium Industry Co., Ltd. to Sichuan Road & Bridge Co.Ltd(600039) to . The company currently holds 62.75% equity of Sichuan energy investment Dingsheng lithium industry. After the transaction is concluded, the company still has the control right of Sichuan energy investment Dingsheng lithium industry. As early as August 18, 2021, Sichuan energy investment group and Shudao Group signed the strategic cooperation framework agreement. The two sides said that they should jointly grasp the industrial cooperation in clean energy, mineral resources and other industries, accelerate the implementation of a number of major projects, and build an interactive, complementary, mutually beneficial and mutually beneficial development pattern. On October 20 of the same year, Sichuan Road & Bridge Co.Ltd(600039) announced that it planned to issue 727802 million non-public shares to Sichuan energy investment and introduce it as a strategic shareholder Sichuan New Energy Power Company Limited(000155) and Sichuan Road & Bridge Co.Ltd(600039) , as listed companies under Sichuan energy investment group and Sichuan Shudao group respectively, are the implementation platforms of specific cooperation projects. Now the two sides have taken the first step in resource complementarity, and look forward to further cooperation between the two companies.
Investment advice
The company has successfully consolidated its solid waste business. In the future, the new energy power generation business and solid waste business are expected to achieve steady growth and provide stable cash flow. At present, the company has completed the layout of upstream lithium ore + lithium salt, and conducted strategic cooperation with Sichuan Road & Bridge Co.Ltd(600039) to supplement the layout of phosphate rock resources in the company’s new energy industry chain. The successful operation of Lijiagou project in 2022 will become the first rooting project of Sichuan New Energy Power Company Limited(000155) West Sichuan lithium mine development, which is expected to give play to the demonstration driving effect, help the company continue to give full play to the advantages of state-owned enterprises and accelerate the integrated development of lithium resources in West Sichuan. Based on the rapid rise in the price of lithium resources and the termination of the comprehensive business of new energy, we lowered the company’s performance in 2022, raised the company’s performance in 2023, and added a new forecast for 2024. The revenue in 20222023 was adjusted from 6.185 billion yuan and 8.944 billion yuan to 4.727 billion yuan and 12.713 billion yuan respectively, with a year-on-year increase of 7.2% and 168.9% respectively; The new forecast for 2024 is RMB 15.287 billion, a year-on-year increase of 20.3%. From 2022 to 2023, the net profit attributable to the parent company was adjusted from 1.361 billion yuan and 2.298 billion yuan to 945 million yuan and 2.505 billion yuan respectively, with a year-on-year increase of 177.9% and 165.1% respectively. The new forecast for 2024 is that the net profit attributable to the parent company is 3.395 billion yuan, with a year-on-year increase of 35.5%. From 2022 to 2023, EPS was adjusted from 0.83 and 1.52 yuan to 0.64 and 1.70 yuan respectively, and in 2024, EPS was 2.30 yuan, corresponding to the closing price of 16.56 yuan on April 20, 2022, and PE was 26 / 10 / 7X respectively, maintaining the “buy” rating.
Risk tips
1. The construction progress of lithium mine was less than expected and failed to be put into operation on time;
2. The price of lithium resources decreased significantly;
3. The acquisition and construction progress of lithium salt business is less than expected;
4. In the future, the integrated development of lithium resources in Sichuan by major shareholders is less than expected.
