\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 483 Fujian Funeng Co.Ltd(600483) )
Event: in 2021, the company achieved an operating revenue of 12.077 billion yuan, a year-on-year increase of 26.37%; The net profit attributable to the parent company was 1.268 billion yuan, a year-on-year decrease of 15.18%; The net profit deducted from non parent company was 1.255 billion yuan, a year-on-year decrease of 14.08%. In the first quarter of 2022, the operating revenue was 2.534 billion yuan, a year-on-year decrease of 10.69%; The net profit attributable to the parent company was 644 million yuan, a year-on-year increase of 16.94%; The net profit deducted from non parent company was 640 million yuan, with a year-on-year increase of 16.56%.
Comments:
The sharp rise in coal prices has led to a decline in performance in 21 years, and thermal power is expected to usher in profit recovery. Since the second half of 2021, the gross profit rate of thermal power business has increased significantly, resulting in a significant increase in the cost of thermal power business. In 2021, the gross profit margin of the company’s power business segment was 17.59%, 7.06 percentage points lower than that in 2020. With the continuous promotion of coal price regulation and coal supply guarantee policies by the state, the new pricing mechanism of coal long-term association will be implemented from May 1, 2022. It is expected that the coal price will gradually fall down and the company’s thermal power profit is expected to improve. In addition, the rise of market-oriented transaction price of coal power also helps to repair the profit of coal power. According to the company’s announcement, in 2021, the company’s Fujian and Guizhou coal power on grid tariffs were 388.95 and 341.44 yuan / MWh respectively, with a year-on-year increase of 0.99% and 4.62% respectively.
Haifeng project was put into operation and its performance grew steadily in the first quarter. Although the coal price did not fall significantly in the first quarter, the company’s offshore wind power generation and on grid power increased significantly thanks to the operation of the company’s offshore wind project, driving the steady growth of performance. According to the company’s announcement, the company’s pinghaifeng f area project, Shicheng Haifeng project and Changle offshore C area project have been put into operation, promoting the growth of the company’s performance. In the first quarter of 2022, the company’s offshore wind power generation and on grid power were 594 million kWh and 578 million kwh respectively, with a significant year-on-year increase of 353.44% and 351.56% respectively. In addition, in the first quarter of 2022, the company’s coal-fired power generation and online power generation were 1.458 billion kWh and 1.353 billion kwh respectively, with a year-on-year decrease of 12.33% and 12.37% respectively. Under the high coal price, the company’s coal-fired power generation decreased, which helped to reduce the company’s losses and boost the company’s performance growth.
The installed capacity structure is optimized, the advantages of resource endowment are prominent, and the performance is stable and the growth is expected. By 2021, the company’s holding and operating installed capacity was 5.99gw, of which the installed capacity of wind power generation, natural gas power generation, cogeneration, coal-fired power generation and photovoltaic power generation were 1.81, 1.53, 1.30, 1.32 and 0.04gw respectively. The total installed capacity of Fengguang new energy power generation was 1.85gw, accounting for 30.88% of the company’s total installed capacity, an increase of 10.66 percentage points over 20.20% in 2020. The company has a good endowment of wind power resources. In 2021, the average utilization hours of wind power of the company reached 2951 hours, 719 hours higher than the average utilization hours of wind power in China and 248 hours higher than the average utilization hours of wind power in Fujian Province. With the gradual operation of Changle offshore area C project, area f project and Shicheng project, the company’s wind power generation is expected to increase significantly, driving the company’s performance to maintain a steady growth trend.
We will continue to vigorously develop clean energy power generation, and the installed scale of offshore wind power is expected to grow steadily in the future. In the future, the company will continue to vigorously develop clean energy power generation guided by clean and renewable energy such as wind energy, Cecep Solar Energy Co.Ltd(000591) , nuclear energy and clean and efficient cogeneration projects. Looking forward to the future, under the background of the “double carbon” target policy, there is a large room for the growth of the installed scale of Fengguang new energy. Relying on the resource advantages of enterprises affiliated to Fujian Province, the company will actively strive for the resources of high-quality offshore wind power projects in Fujian Province, and strive to achieve the Competitive Allocation approval of offshore wind power reserve projects in 2022, so as to promote the continuous growth of the installed scale of offshore wind power of the company.
Maintain the “buy” rating: as a new energy power enterprise in Fujian Province, the company vigorously develops offshore wind power, with significant competitive advantage. In the future, the company will actively expand new energy power generation, ensure sustainable growth, and the company’s performance is expected to maintain a growth trend. It is estimated that the operating revenue of the company from 2022 to 2024 will be RMB 12.812 billion, RMB 13.248 billion and RMB 14.401 billion respectively, with a year-on-year increase of 6.09%, 3.40% and 8.70% respectively; The net profit attributable to the parent company was 2.642 billion yuan, 2.858 billion yuan and 3.241 billion yuan respectively, with a year-on-year increase of 108.32%, 8.17% and 13.39% respectively. The EPS was 1.35, 1.46 and 1.66 yuan respectively, and the corresponding PE was 8.88, 8.21 and 7.24 times respectively.
Risk tips: the promotion of Haifeng project is less than expected, the price of electricity is lower than expected, the implementation of policies is less than expected, and the coal price remains high.
