\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 517 State Grid Yingda Co.Ltd(600517) )
Event: the company disclosed that in the first quarter report of 2022, the total operating revenue in the first quarter of 2022 was + 42.8% year-on-year to 2.01 billion yuan, slightly exceeding the expectation, and the net profit attributable to the parent company was – 31.2% year-on-year to 160 million yuan, lower than the expectation.
The capital market fluctuated sharply in 2022q1, which affected the company’s proprietary investment income and dragged down the overall net profit attributable to the parent less than expected: 1) investment in financial business dragged down the overall performance: the company’s net profit attributable to the parent mainly contributed to trust business and securities business. Due to the sharp decline of the market (Shanghai Stock Exchange Index fell 10.65% in 2022q1 and gem index fell 19.96%), the market value of financial assets held by the company’s trust and securities fluctuated, As a result, the company suffered a loss of 350 million yuan from changes in fair value, a decrease of 90 million yuan over the same period of last year, and the investment income was – 800000 yuan, a decrease of 100.3% over the same period of last year. 2) In addition to the investment business, the financial business remained stable as a whole: the company’s net fee and commission income was + 13.5% to 740 million yuan year-on-year, and the interest income was + 3.4% to 190 million yuan year-on-year. The company’s shareholders were state grid. Its Yingda trust, Yingda securities, Yingda futures and the financial units of the controlling shareholder Yingda group were jointly committed to providing all-round financial services for the power and energy industry chain. The two wheel drive of “industry + finance” ensures the robustness of financial business and is expected to remain relatively stable throughout the year.
The industry bucked the trend and the transformer business income is expected to have a positive impact on the whole year: 1) the power equipment bucked the trend and made a positive contribution for the whole year: 2022q1 company achieved a year-on-year operating income of + 89% to 1.09 billion yuan, mainly due to the increase of power equipment business. From the historical statements, more than 80% of the operating revenue is contributed by the manufacturing sector. According to the announcement of the company on December 15, 2021, the amount of the successful distribution transformer products is pre disclosed to be about 1.47 billion yuan, which is expected to have a positive impact on the years after grade State Grid Yingda Co.Ltd(600517) 2022. 2) Achieve practical results in serving double carbon: the company promotes two-way efforts in finance and manufacturing, builds a one-stop carbon comprehensive service platform based on its Yingda carbon assets, actively serves the double carbon goal, and achieves its own carbon neutrality in 2020 and 2021. Strengthen the supporting capacity of carbon services, formulate the green evaluation standards for electrical equipment manufacturing enterprises, dynamically reflect the carbon emission levels and trends of regions, industries and enterprises through the “electric carbon ecological map”, and pilot the carbon contribution recognition service of power enterprises. In 2021, the operating revenue has reached 25.78 million yuan, a year-on-year increase of 18.41 times, and the net profit has reached 2.18 million yuan.
Profit forecast and investment rating: affected by market fluctuations, the net profit of the company’s financial sector dragged down the overall performance; The industry is expanding rapidly, the potential of carbon assets and green finance business needs to be released, and the company is optimistic about the long-term growth space of the company. Based on the parent company’s forecast of rmb1.38 billion in 2023, the net profit of rmb1.86 billion in 2023 / s27.7 billion in 2023 / s18.7 billion in 2023 / s27.7 billion in 202321 / 0.24/0.28 yuan, corresponding to the current market value (calculated according to the closing price on October 27, 2021) of 35.27x, 31.22x and 26.89xpe respectively, maintaining the rating of “overweight”.
Risk tips: 1) market fluctuations affect investment returns; 2) Profitability of power equipment business; 3) The supervision of trust business is becoming stricter, and the asset quality is lower than expected; 4) The profitability of carbon assets is lower than expected.
