\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 877 Zhejiang Chint Electrics Co.Ltd(601877) )
Event: the company released its annual report for 2021. In 2021, it realized an operating revenue of 38.865 billion yuan, a year-on-year increase of 16.88%, and a net profit attributable to the parent company of 3.401 billion yuan, a year-on-year decrease of 47.09%; Excluding the impact of changes in the fair value of Zhejiang Supcon Technology Co.Ltd(688777) shares, the company realized a net profit attributable to the parent company of 4 billion yuan in 2021, with a year-on-year increase of 8.19%. The company also released the first quarterly report of 2022. In 2022q1, the operating revenue was 10.642 billion yuan, a year-on-year increase of 54.91%, and the net profit attributable to the parent was 587 million yuan, a year-on-year increase of 384.10%.
The revenue of low-voltage electrical appliances business grew steadily, and the rolling development & power station operation scale was improved, which promoted the high growth of revenue in the new energy sector. (1) For the low-voltage electrical appliance business, in 2021, the company accelerated the promotion of the global business architecture system with regional headquarters and localized subsidiaries as the core. The international business revenue increased by 30.52% to 2.57 billion yuan year-on-year, driving the sector’s business revenue to increase by 6.69% to 19.654 billion yuan year-on-year; Affected by the price fluctuation of raw materials, the gross profit margin of sales decreased by 2.46 PCT year-on-year to 28.94%. (2) In terms of photovoltaic business, the company actively promoted the strategy of “platform based and asset light”, realized the improvement of customer stickiness and asset quality through rolling development mode, and continuously expanded the installed capacity in hand by taking advantage of the leading position of household photovoltaic. In 2021, the scale of the company’s own operating power station reached 8.19gw (of which household photovoltaic reached 5.4gw, ranking first in the world), and the operating revenue of photovoltaic sector increased by 28.76% to 18.197 billion yuan year-on-year, The gross profit margin decreased by 2.46 PCT year-on-year to 19.55%. In 2022q1, the company’s low-voltage electrical business developed steadily, and the business boom of photovoltaic sector continued to improve. In 2022q1, the scale of self-sustaining operating power stations increased to 863gw, the electricity revenue was 955 million yuan, and the operating revenue of photovoltaic sector was + 113% to 4.978 billion yuan year-on-year, driving the company’s net profit attributable to the parent company to + 384.10% to 587 million yuan year-on-year (excluding the impact of changes in the fair value of Zhejiang Supcon Technology Co.Ltd(688777) shares, the net profit attributable to the parent company was + 19.88% to 779 million yuan year-on-year).
It is proposed to divest the photovoltaic module manufacturing business, focus on the core main business and improve the quality of profits. The company announced that in order to further focus on the company’s core business and enhance the certainty of profitability, it plans to sell assets related to photovoltaic module manufacturing business (the total transaction consideration is 2.25 billion yuan). Affected by the price rise of upstream raw materials and intensified competition, the gross profit margin of the company’s photovoltaic module manufacturing business fell rapidly in 20 / 21 years (from 17.01% in 19 years to 10.78% / 6.49% in 20 / 21 years), and lost about 100 million yuan in 21 years; After the divestiture, the company’s profitability and asset quality are expected to be improved, and the return of funds will also help the company focus on the development and operation of household photovoltaic and expand its leading edge.
Maintain the “buy” rating: assuming that the company successfully completes the stripping of photovoltaic module manufacturing business, we slightly reduce the profit forecast for 22-23 years and introduce the profit forecast for 24 years. It is expected that the company will realize the net profit attributable to the parent company of RMB 5.488/61.84/6.878 billion (down 2% / down 6% / new) in 22-24 years, which corresponds to eps2 55 / 2.88/3.20 yuan. The current share price corresponds to 12 / 11 / 10 times of PE in 22-24 years. The high outlook of photovoltaic industry continues. The company’s household photovoltaic business will accelerate with the promotion of the distributed policy of the whole county, and the new energy (mainly new energy vehicles) and power equipment (mainly state grid and related power groups) in the downstream customers of low-voltage appliances will also maintain rapid growth under the background of “carbon neutrality”. The company is a leader in the above businesses, In the future, it will maintain steady growth with the improvement of industry prosperity and maintain the “buy” rating.
Risk warning: the newly installed capacity of photovoltaic is less than expected; Power grid investment is less than expected; Overseas business operation risk. main points
