\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 163 Zhongmin Energy Co.Ltd(600163) )
Event:
The company released its annual report for 2021, and achieved an annual operating revenue of 1.533 billion yuan, a year-on-year increase of 22.41%; The net profit attributable to the parent company was RMB 656 million (excluding RMB 654 million), with a year-on-year increase of 35.11% (excluding an increase of 40.33%).
Pinghaiwan Haifeng phase II was put into operation in full capacity, and the performance continued to increase in the first quarter of 2022
In December 2021, pinghaiwan Haifeng phase II was put into operation at full capacity, and began to contribute to the performance in 2022. At the end of 2021, the company’s holding installed capacity reached 957.3mw (year-on-year + 17%), including 501.8mw of Fujian land wind, 296mw of Fujian sea wind (year-on-year + 62.6%), 109.5mw of Heilongjiang Land wind, 20MW of photovoltaic and 30MW of biomass (newly added in 21 years). The company’s wind power installed capacity in Fujian Province is 797.8mw, accounting for 10.85% of the wind power installed capacity in Fujian Province.
In 2021, the revenue and net profit attributable to the parent company increased significantly, mainly due to the completion and operation of Matoushan wind farm, Wangmushan wind farm, Damaoshan wind farm and other projects in 2020. In 2021, the above-mentioned projects will be connected to the grid with full capacity throughout the year. The annual power generation and on grid power of the company were 2.722 billion kWh and 2.654 billion kwh, with a year-on-year increase of 18.15% and 18.48% respectively; The average on grid electricity price is 658.61 yuan / MWh, which has increased year-on-year, mainly due to the increase in the proportion of sea breeze with high electricity price (the price of sea breeze is 850 yuan / MWh).
Previously, the company issued a pre increase announcement for the first quarter of 2022. The net profit attributable to the parent company in the first quarter was RMB 262314million, an increase of 51%-81% year-on-year. The main reason is that in December 2021, pinghaiwan Haifeng phase II project will be connected to the grid with full capacity.
Cost control was good, ROE (weighted) increased year-on-year and solvency improved
In 2021, the gross profit margin of the company’s sales was 65.49%, a year-on-year decrease of 2.44 percentage points, mainly because the number of grid connected fans increased year-on-year, and the operating cost increased by 32.78% year-on-year, faster than the growth rate of revenue; During the period, the expense rate was 15.47%, a year-on-year decrease of 0.45 percentage points, and the cost was well controlled; Roe (weighted) 15.76%, with a year-on-year increase of 1.29 percentage points; The net operating cash flow was 802 million yuan, a year-on-year increase of 2.4%.
At the end of 2021, the company’s asset liability ratio was 54.3%, a year-on-year decrease of 9.48 percentage points, mainly due to the conversion of all convertible bonds issued by the company into shares in 2021; The current ratio and quick ratio were 1.61 and 1.60 respectively, with a year-on-year increase of 0.57 respectively.
2.4gw high-quality projects to be injected, which is 2.5 times the existing installed capacity
Fujian investment and development group, the controlling shareholder of the company, promises to start the injection procedure through consultation with the company within one year after meeting the requirements of stable production, making profits throughout the year and meeting the listing conditions. At present, the projects to be injected include mintou offshore power (Pinghai Bay offshore wind power phase III), Ningde mintou (Ningde Xiapu offshore wind power zone a and C), Xiapu Mindong (Ningde Xiapu offshore wind power zone B), mintou pumped storage (Yongtai pumped storage), mintou power, etc. The total installed capacity of four Haifeng projects reaches 1.208gw, and the installed capacity of Yongtai pumped storage is 1.2gw. The total number of projects to be injected is 2.408gw, which is about 2.5 times of the existing installed capacity.
Pinghai Bay offshore wind power phase III has been connected to the grid at the end of 2021, with an installed capacity of 0.308gw, which is expected to be injected in 2023; The construction progress of Yongtai pumped storage is in line with the expectation. Recently, the main dam of the upper reservoir is capped, and the water storage test of the lower reservoir is completed. The whole is expected to be completed by the end of 2022 or 2023.
Valuation analysis and rating description
Pinghai Bay Haifeng phase II will be connected to the grid with full capacity in December 2021, and will start to contribute to the performance in 2022; Pinghai Bay Haifeng phase III is expected to be injected in 2023, and other projects are expected to be injected after 2024. At the same time, the company actively implements the “going out” development strategy and looks for high-quality project M & A opportunities with reasonable prices.
It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 897 million yuan, 1.203 billion yuan and 1.321 billion yuan respectively, and the corresponding PE will be 15.50 times, 11.56 times and 10.53 times respectively. For the first coverage, give a “recommended” rating.
Risk tips:
The incoming wind is lower than expected; On grid tariff reduction; The project development progress is less than expected; The progress of asset injection was less than expected.
