\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 222 Jiangsu Linyang Energy Co.Ltd(601222) )
Event: the company released the 2021 annual report and the first quarterly report of 2022. The operating revenue in 2021 was 5.297 billion yuan, a year-on-year decrease of 8.66%; The net profit attributable to the owners of the parent company was 930 million yuan, a year-on-year decrease of 6.69%. In the first quarter of 2022, the net profit attributable to the owner of the parent company was 179 million yuan, a year-on-year increase of 3.68%; The operating revenue was 984 million yuan, a year-on-year increase of 2.93%.
The turning point of 22q1 profitability is upward, and the gross profit margin of energy storage in 21 years is increased: the gross profit margin of the company in 21 years is 35.35%, year-on-year + 0.16pct; The gross profit margin of 22q1 was 33.72%, up 1.81pct month on month compared with 21q4. In terms of products, in 2021, the revenue of electric energy meter products was 2.009 billion yuan, with a year-on-year increase of – 20.29%, and the gross profit margin was 26.38%, with a year-on-year increase of -1.72 PCT; The revenue of energy conservation and energy storage business was 64 million yuan, a year-on-year increase of – 15.15%, and the gross profit margin was 44.68%, a year-on-year increase of + 3.83 PCT; The revenue of photovoltaic power generation was 1.454 billion yuan, a year-on-year increase of + 2.08%, and the gross profit margin was 71.13%, which was flat year-on-year; Photovoltaic EPC revenue was 1.48 billion yuan, with a year-on-year increase of – 7.61% and a gross profit margin of 16.28%, with a year-on-year increase of + 0.47pct.
Smart meters take the lead in bidding and strive to expand overseas share. In 2021, the company ranked first in the number and amount of bid winning in the bidding of State Grid, South Grid and local power. Among them, in the bidding procurement of electric energy meters (including power consumption information collection) of State Grid in 2021, the total bid winning amount is about 657 million yuan; In the 2021 measurement product framework bidding project of China Southern Power Grid, the total bid winning amount is about 273 million yuan. As one of the largest smart meter exporters in China, the company’s products cover more than 30 countries and regions around the world. It plans to expand its overseas market share, ensure order delivery, reduce costs and increase efficiency and increase gross profit margin.
Accelerate the promotion of distributed photovoltaic in the whole county and deepen the EPC business of central state-owned enterprises. By the end of 2021, the company owned about 1.6gw of photovoltaic power stations, with more than 6Gw of reserved photovoltaic projects and more than 3.5gW of operation and maintenance photovoltaic projects. The company plans to start 2.5gw new energy projects in 2022. The company continues to increase cooperation with central state-owned enterprises such as CGN, Huaneng, Shenneng, state power investment, Three Gorges, China Power Construction and China energy construction; Actively respond to the National County wide roof distributed photovoltaic policy, focus on the central and eastern region, and sign cooperation framework agreements with local governments. In 22-24 years, the company strives to develop and build more than 6Gw of new energy power stations.
Yiwei Linyang 10gwh energy storage battery project is planned to be put into operation within this year to speed up the layout of energy storage business. Focusing on the design of “BMS + PCs + EMS” energy storage system, the company has established a joint venture with Eve Energy Co.Ltd(300014) to build an energy storage lithium iron phosphate battery project with an annual capacity of 10gwh, which is expected to be completed and put into operation within 22 years; And build an energy storage battery pack and system project with an annual capacity of more than 2gwh in Qidong; Signed a strategic cooperation framework agreement with Huawei to develop large-scale lithium-ion energy storage products and system solutions. Over the past 21 years, the company has reserved more than 3gwh of energy storage project resources, and plans to deliver about 600mwh system in 22 years, so as to achieve the goal of building no less than 5gwh energy storage system in 22-24 years.
Profit forecast, valuation and rating: due to the impact of the epidemic and overseas trade, as well as the rise in the prices of electronic components and photovoltaic raw materials, the company lowered its 22-23 year profit forecast to 1.332/1.722 billion yuan (- 14% / – 10%), and added a 24-year profit forecast of 2.071 billion yuan, corresponding to 10 / 8 / 6 times of PE. The company is expected to benefit from the promotion of distributed photovoltaic projects in the whole county and the high prospect of energy storage industry, so as to maintain the “buy” rating.
Risk tips: the project construction and policies are not as expected, the market competition is fierce, and the overseas business development is not as expected.
