\u3000\u30003 Pacific Shuanglin Bio-Pharmacy Co.Ltd(000403) 00040)
Event: the company released its annual report for 2021. In 2021, it realized an operating revenue of 1.41 billion yuan, a year-on-year increase of 10.17%, and a net profit attributable to the parent company of 182 million yuan, a year-on-year increase of 159.94%; In 2021q4, the net profit attributable to the parent company was 71 million yuan, with a year-on-year increase of 413.52%; It is proposed to distribute a cash dividend of 0.05 yuan per share (including tax).
The scale of new energy power stations put into operation has increased significantly, promoting the rapid growth of profitability and performance. (1) The production and sales business of electrical equipment is the traditional main business of the company. In 2021, the segment achieved an operating revenue of 469 million yuan, a year-on-year increase of 20.85%, and the gross profit margin decreased by 6.19 PCT to 16.56%, mainly due to the sharp rise in the price of raw materials. (2) In 2021, the scale of new energy power stations held by the company increased significantly with the operation of projects under construction (two 100MW affordable photovoltaic projects) and the consolidation of indirectly held power stations (237.5mw in total), the average utilization hours increased by 42.68% to 2033 hours year-on-year, and the annual on grid power was 1.338 billion kwh, a year-on-year increase of 271%, driving the year-on-year increase of power generation revenue by 179.72% to 465 million yuan, The gross profit margin decreased by 8.50 PCT to 61.45% year-on-year with the increase of the scale of parity projects. (3) The company’s new energy engineering construction business decreased by 47.97% to 300 million yuan year-on-year, mainly because the company’s development focus shifted to the independent development, construction and operation of new energy power stations, and the gross profit margin increased by 4.23 PCT to 28.35% year-on-year.
The new energy operation sector continued to make efforts, and the scale of self-owned + indirectly owned power stations put into operation increased steadily. By the end of 2021, the company had held and operated 697.35mw of new energy power stations, an increase of 1.68 times over the same period of the previous year, including 460MW self-held (including 269mw photovoltaic power and 191mw wind power), and 237.5mw indirect investment (including 140MW photovoltaic power and 97.5mw wind power). In 2022, the company will strive to realize the smooth grid connection and operation of 250MW wind power projects under construction, and appropriately promote the development of a new batch of affordable scenery projects according to the resource situation, so as to ensure the steady increase of the scale of new energy power stations held by the company.
Biomass cogeneration mode ensures steady improvement in performance, and the development of comprehensive smart energy business is worth looking forward to. By October 2021, the company has arranged biomass cogeneration projects with a scale of 650MW, including 160mw under construction. In 2022, the company will continue to strengthen cooperation with China national household electrical appliance Investment Corporation and strive to realize the new grid connection of three biomass (straw) cogeneration units. On the one hand, EPC income can be realized through project construction, on the other hand, after the project is put into operation, income and profit can be realized through power generation and heating, which can ensure the continuous improvement of the company’s investment income.
Maintain the “overweight” rating: the profitability of the company will be reduced after the subsequent parity projects are put into operation. We lowered the profit forecast for 22 / 23 years and introduced the 24-year profit forecast. It is estimated that the net profit attributable to the parent company in 202224 will be RMB 262 / 336 / 410 million respectively (down 22% / down 12% / new), the corresponding EPS will be RMB 0.45/0.57/0.70, and the current share price corresponding to PE in 22-24 years will be 13 / 10 / 8 times respectively. The scale of the company’s new energy operation power station will continue to increase with the continuous implementation of projects under construction. The performance increment brought by the superposition and layout of biomass energy projects to the company in terms of construction and investment income is expected to grow steadily and maintain the “overweight” rating.
Risk warning: the installed capacity of new energy is less than expected; Power grid investment is less than expected; Biomass cogeneration project operation risk.
