\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 669 Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) )
Event: the company released the annual report of 2021. In 2021, the company achieved a total revenue of 448980 billion yuan, a year-on-year increase of 11.70%; The net profit attributable to the parent company was 8.632 billion yuan, a year-on-year increase of 8.07%; The net profit attributable to the parent company after deduction was 8.095 billion yuan, a year-on-year increase of 53.11%.
The revenue growth of equipment manufacturing and leasing sector was high, and the net profit attributable to the parent increased after deducting non profits. In 2021, the company achieved a total revenue of 448980 billion yuan, a year-on-year increase of 11.70%. Among them, project contracting and survey and design / power investment and operation / real estate development / equipment manufacturing and leasing / other realized revenue of 372988/203.41/295.39/65.4216947 billion yuan, with a year-on-year change of + 12.22% / + 7.88% / + 35.56% / + 71.29% / – 25.27%. In 2021, the company’s net profit attributable to the parent company was RMB 8.632 billion, with a year-on-year increase of 8.07%, and the net profit attributable to the parent company after deducting non profits was RMB 8.095 billion, with a year-on-year increase of 53.11%; Net operating cash flow was 15.624 billion yuan, a year-on-year decrease of 63.64%, mainly due to the adjustment of accounting policies; The gross profit margin and net profit margin of the company were 13.11% and 3% respectively, with a year-on-year decrease of 1.12pct and 0.17pct respectively.
Newly signed contracts increased by 15.91% year-on-year, and the growth rate of newly signed contracts in pumped storage business was high. In 2021, the company signed 780283 billion yuan of new contracts, with a year-on-year increase of 15.91%. Among them, the newly signed energy and power business contracts amounted to 240 billion yuan, a year-on-year increase of 28.6%; The newly signed infrastructure business contracts amounted to 362 billion yuan, a year-on-year increase of 9.2%; The newly signed water conservancy, water resources and environment business contracts amounted to 129.5 billion yuan, a year-on-year decrease of 12%. Among the newly signed energy and power business contracts, the newly signed contract amount of photovoltaic power generation business and pumped storage power station business increased significantly, with a year-on-year increase of 84.2% and 342.9% respectively. Among the newly signed infrastructure business contracts, the contract amount of municipal construction business and highway construction increased by 35.5% and 52.9% respectively year-on-year. By the end of 2021, the company had a grid connected installed capacity of 173785 million KW, and clean energy accounted for 81.82%.
Focus on real estate business. The company will replace the real estate assets held by the company with the high-quality power grid auxiliary assets held by the power construction group. At present, the relevant asset delivery and industrial and commercial change procedures have been completed. In the future, the company will give full play to its core competence and industrial chain integration advantages of “understanding water and electricity, good planning and design, long-term construction and investment and operation”, accelerate the strategic transformation, further focus on the strategic focus and resource allocation, and further concentrate on the three core main businesses of energy and electricity, water related business and urban construction and infrastructure, so as to provide power construction schemes for the “double carbon” goal. In 2021, the company achieved 731.5 billion yuan of newly signed “water, energy and city” business contracts, accounting for 93.7%.
Investment suggestion: it is estimated that the company’s revenue from 2022 to 2023 will be 516327/583450 billion yuan respectively, with a year-on-year increase of 15% / 13%, the net profit attributable to the parent company will be 9.841/10.923 billion yuan, with a year-on-year increase of 14% / 11%, EPS per share will be 0.64/0.71, corresponding to 12 / 10 times of the current share price PE respectively, maintaining the “recommended” rating.
Risk warning: covid-19 epidemic situation affects the risk of project progress; The risk that the recovery of accounts receivable is less than expected.
