\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 222 Jiangsu Linyang Energy Co.Ltd(601222) )
The company issued the annual report of 2021 and the first quarterly report of 2022, and the performance was in line with expectations; The company continued to make breakthroughs in the overseas market of the smart sector, the photovoltaic business remained stable, and the energy storage business was comprehensively arranged; Maintain the overweight rating.
Key points supporting rating
The profit in 2021 decreased by 7%: the company released the annual report of 2021, the annual revenue was 5.297 billion yuan, a year-on-year decrease of 8.66%, the net profit attributable to the shareholders of the listed company was 930 million yuan, a year-on-year decrease of 6.69%, and the non-profit after deduction was 887 million yuan, a year-on-year decrease of 8.38%. The company also released the first quarterly report of 2022. In 2022q1, the revenue was 984 million yuan, a year-on-year increase of 2.93%, the profit was 179 million yuan, a year-on-year increase of 3.68%, and the non-profit was 159 million yuan, a year-on-year decrease of 0.23%.
Continuous breakthroughs in overseas electricity meter Market: in 2021, affected by the order execution rhythm of Saudi Arabia market, the company’s intelligent sector realized a revenue of 2.089 billion yuan, a year-on-year decrease of 19.04%; The gross profit margin of electricity meters decreased by 1.72 percentage points year-on-year to 26.38%. In terms of overseas markets, the company has made in-depth cooperation with Langer, realizing the sales of more than 3.1 million meters in Europe, Asia Pacific, South America and other markets, including more than 1.1 million and 1 million in East Asia and Eastern Europe respectively.
The photovoltaic business remained stable, and the reserve projects accumulated a lot: the company’s photovoltaic sector achieved an income of 3.037 billion yuan in the whole year, a year-on-year decrease of 0.39%. Among them, the revenue from photovoltaic EPC business was 1.48 billion yuan, and the revenue from photovoltaic power generation business was 1.454 billion yuan, a year-on-year increase of 2.08%. By the end of 2021, the total capacity of the company’s on-site grid connected photovoltaic power station is 1.6gw, realizing 1.975 billion kwh of power generation and 1.919 billion kwh of on grid power; And there are more than 6Gw of reserve projects, including 3.44gw of approved projects; In 2022, the company plans to start 2.5gw new energy projects.
The energy storage business is ready to go, and the hydrogen production business is prospectively planned: in 2021, the company will accelerate the layout of energy storage projects, with the resources of energy storage projects exceeding 3gwh, and plans to realize the delivery of system integration business of about 600mwh. It is expected to build energy storage systems of no less than 5gwh in the next three years. In addition, the company established a joint venture with Shunhua new energy to layout the hydrogen production equipment business of new energy.
Valuation
Under the current share capital, combined with the company’s annual report, quarterly report and Industry Supply and demand, we adjusted the company’s predicted earnings per share from 2022 to 2024 to 0.59/0.78/0.94 yuan (the original predicted diluted earnings per share from 2022 to 2023 was 0.74/0.89 yuan), corresponding to a P / E ratio of 11.3/8.6/7.1 times; Maintain the overweight rating.
Main risks of rating
The price of photovoltaic modules rose more than expected; Photovoltaic policy risk; Photovoltaic power station subsidy default and power rationing risk; The demand for electricity meters does not meet expectations; The impact of covid-19 epidemic exceeded expectations.
