\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 139 Shenzhen Gas Corporation Ltd(601139) )
Performance review
On April 28, the company released its 2021 annual report and the first quarterly report of 2022. The company’s annual revenue in 2021 was 21.41 billion yuan, a year-on-year increase of + 42.62%; The net profit attributable to the parent company was 1.35 billion yuan, a year-on-year increase of + 2.46%. In 2022q1, the revenue was 6.79 billion yuan, a year-on-year increase of + 55.92%; The net profit attributable to the parent company was 230 million yuan, a year-on-year increase of – 21.04%.
Business analysis
The goal of adding LPG at a low price is exceeded. The company’s annual sales revenue of pipeline natural gas in 2021 was 10.96 billion yuan, a year-on-year increase of + 33%; The sales volume of pipeline natural gas was 4.024 billion cubic meters, a year-on-year increase of + 22.01%, mainly due to the fact that the goal of pipeline gas in urban villages in Shenzhen was exceeded at the end of the year, and more than 10000 industrial and commercial users in Shenzhen were added. In terms of LPG, the company’s annual LPG wholesale sales revenue was 2.56 billion yuan, a year-on-year increase of + 70.53%, mainly due to the company’s timely adjustment of strategies, reduction of LNG procurement and increase of LPG import procurement at the low price of LPG.
Sign long-term agreements with many companies to ensure supply. Huaan company, a wholly-owned subsidiary, signed a 10-year natural gas procurement contract with Bibi China in October 2021, with the contract gas volume of 225000 tons / year from 2023 to 2024 and 300000 tons from 2025 to 2032; Signed a natural gas purchase agreement with PetroChina with an annual supply of 4 billion cubic meters during the stable production period, and signed several long-term contracts to ensure the stable source of upstream natural gas.
Make steady progress in the photovoltaic field and grasp the “double carbon” opportunity. In August 2021, the company acquired Swick, the world’s second-largest photovoltaic adhesive film company, and made progress in the photovoltaic field. In 2022q1, Swick’s operating revenue / net profit was 1.350/90 billion yuan, a year-on-year increase of + 92.35% / + 43.90%. The company decisively entered the market in the rapid growth stage of China’s photovoltaic industry and vigorously developed clean energy.
Investment advice
It is estimated that the company’s net profit attributable to the parent company from 2022 to 2024 will be RMB 1.79/2.02/2.3 billion, EPS will be RMB 0.62/0.7/0.8 respectively, and the corresponding PE will be 10 times, 9 times and 8 times respectively, maintaining the “overweight” rating.
Risk tips
Natural gas price fluctuation risk, the number of new users is less than expected, etc.
