\u3000\u3 Guocheng Mining Co.Ltd(000688) 660 Shanghai Electric Wind Power Group Co.Ltd(688660) )
Both operating income and net profit increased. The company released its annual report for 2021. In 2021, the company achieved a revenue of 23.972 billion yuan, an increase of 15.89% over the same period of last year; The net profit was 507 million yuan, an increase of 21.68% over the same period last year; The non net profit deducted was 417 million yuan, a year-on-year increase of 37.93%.
The industry can grow and the investment track can be maintained. In the context of the national carbon peak and carbon neutralization strategy, the wind energy industry will continue to grow rapidly in 2022. During the 14th Five Year Plan period, we expect the average annual compound growth rate of wind power installed capacity to exceed 13.5%, and the annual new installed capacity will be about 45-55gw. Due to the low base and the unique advantages of sea breeze, the compound growth rate of offshore wind power installation during the 14th Five Year Plan period is or higher. It is optimistic to predict CAGR or more than 58%, and the new installation during the 14th Five Year Plan period is expected to exceed 100gw.
Haifeng is in a stable position and has sufficient orders in hand. In the ranking of new installed capacity of global wind turbine manufacturers in 2021, Shanghai Electric Wind Power Group Co.Ltd(688660) ranks 9th in the world with the data of 5.34gw of new installed capacity. In 2021, China’s wind power industry added 47.57gw of installed capacity, Shanghai Electric Wind Power Group Co.Ltd(688660) China ranked fifth. The offshore installed capacity reached 4.1gw, ranking first in the world, with China accounting for 24%. During the reporting period, the company added 3010.9mw orders and accumulated 7945.5mw orders on hand, with sufficient orders on hand.
Profit forecast and Valuation: we predict that the net profit from 2022 to 2024 will be 573 million yuan, 653 million yuan and 751 million yuan respectively, and the EPS will be 0.43 yuan, 0.49 yuan and 0.56 yuan respectively. The PE corresponding to the current stock price is 22 times, 19.3 times and 16.8 times respectively. Based on the valuation analysis, the Shanghai Electric Wind Power Group Co.Ltd(688660) 12-month target price is 14.07 yuan, giving a “buy” rating.
Risk tips:
The risk of intensified industry competition, the risk of future business expansion, the risk that the business development is less than expected due to the epidemic, the risk that the overall asset liability ratio is higher than that of comparable companies in the same industry, and the conclusion deviation caused by the failure of relevant assumptions
