\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 163 Zhongmin Energy Co.Ltd(600163) )
Event: in 2021, the company achieved an operating revenue of 1.533 billion yuan, a year-on-year increase of 22.41%; The net profit attributable to the parent company was 656 million yuan, a year-on-year increase of 35.11%; The net profit deducted from non parent company was 654 million yuan, with a year-on-year increase of 40.33%. In the first quarter of 202, the company realized an operating revenue of 550 million yuan, a year-on-year increase of 38.15%; The net profit attributable to the parent company was 290 million yuan, a year-on-year increase of 52.26%; The net profit deducted from non parent company was RMB 289 million, with a year-on-year increase of 51.85%.
Comments:
The high performance driven by the installation and operation increased, and the net profit increased significantly in the first quarter. With the company’s Matoushan wind farm, Wangmushan wind farm, Damaoshan wind farm, Qingfeng wind farm phase II project and pinghaiwan phase II sea wind project successively completed and put into operation, the installed capacity of the company continues to grow. By 2021, the company’s cumulative installed capacity has reached 957300 kW. The operation of wind power projects drives the growth of power generation and revenue of the company. In 2021 and 2022q1, the power generation of the company was 2.722 billion kWh and 945 million kwh respectively, with a year-on-year increase of 18.15% and 35.41% respectively; In 2021, the company’s power business revenue was 1.52 billion yuan, a year-on-year increase of 21.82%.
The profitability of the company continued to increase. With the commissioning of high margin wind power projects, the company’s roe level continues to improve. In 2021, the roe of the company was 15.76%, an increase of 1.29pct compared with 14.47% in 2020; In the same period, the company’s net interest rate was 46.41%, an increase of 3.67pct compared with 42.74% in 2020. It is expected that in the future, with the completion of Haifeng project and grid connection, the profitability of the company may continue to improve. In the first quarter of 2022, the gross profit margin and net profit margin of the company were 73.97% and 56.45% respectively, an increase of 9.01 and 10.04 PCT respectively compared with 64.96% and 46.41% in 2021.
The company has strong advantages in wind power resource endowment and excellent asset quality. In 2021, the average utilization hours of the company’s onshore wind farms in Fujian Province were 3030 hours (including more than 3900 hours for Wangmushan wind farm project and Qingfeng phase II wind farm project), the average utilization hours of its offshore wind farms were 4224 hours, and the average utilization hours of the three wind farms in Heilongjiang Province were 2285 hours, which were higher than the national average.
High quality assets are expected to continue to be injected and the installed capacity is expected to continue to grow. Fujian investment group, the controlling shareholder of the company, promises to inject mintou Haidian power (Pinghai Bay offshore wind farm phase III project), mintou power, Ningde mintou (Ningde Xiapu offshore wind farm (a, c) project), Xiapu Mindong (Ningde Xiapu offshore wind farm (b) project) and mintou pumped storage assets into the listed company after meeting the conditions for the project to be put into operation and achieve profitability in a single year. The four offshore wind power projects have a total of 1.208 million KW, of which the 308000 kW project of Pinghai Bay phase III has been put into operation, and the scale of the company’s offshore wind power is expected to continue to break through. Mintou pumped storage is equipped with four 300000 kW units to undertake the task of peak shaving and frequency regulation of Fujian power grid. It is planned to put into operation in 2023. Looking forward to the future, the company will adhere to the two wheel drive of independent development and high-quality project M & A, actively strive for resource allocation in Fujian Province, look for investment opportunities for affordable wind power and photovoltaic projects with good resource conditions outside the province, and actively explore investment in biomass power generation projects. Promote the continuous improvement of installed capacity through project rolling development and asset acquisition.
Maintain the “buy” rating: the company’s installed capacity continues to grow. At the same time, it is expected to inject high-quality offshore wind power assets and pumped storage assets in the future, and the company’s future performance is expected to continue to grow rapidly. It is estimated that the operating revenue of the company from 2022 to 2024 will be RMB 2.280 billion, RMB 2.695 billion and RMB 3.125 billion respectively, with a year-on-year increase of 48.75%, 18.21% and 15.95% respectively; The net profit attributable to the parent company was 1.039 billion yuan, 1.188 billion yuan and 1.346 billion yuan respectively, with a year-on-year increase of 58.26%, 14.36% and 13.31% respectively; EPS is 0.55, 0.62 and 0.71 respectively, and the corresponding PE is 12.40, 10.84 and 9.57 times respectively.
Risk tip: the construction progress of Haifeng project is less than expected, the asset injection progress is less than expected, and the renewable subsidy is in arrears.
