\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 615 Ming Yang Smart Energy Group Limited(601615) )
Performance review
On April 28, 2022, the company released the first quarter report of 2022. During the reporting period, the company realized a revenue of 7.126 billion yuan, an increase of 63.4% at the same time; The net profit attributable to the parent company was 1.408 billion yuan, an increase of 398.53% at the same time; RMB 439.45 billion will be added to the parent company and the net profit will be deducted from the non parent company; EPS0. 68 yuan, roe6 65%, which is the median level of pre increase announcement.
Business analysis
High gross profit marine wind products + large-scale unit cost reduction to maintain the high gross profit level of fans. According to the historical revenue structure of the company, the unit sales revenue accounts for about 90% and the revenue of power generation business accounts for 5% – 10%. The gross profit margin of power generation business has remained at about 65% historically. Therefore, we can calculate that the gross profit margin of 1q22 wind turbine unit has reached 20% +, which has increased month on month, mainly due to the sales of high gross profit sea breeze products and the cost reduction of large-scale units. It is expected that in the future, with the further promotion of large-scale unit cost reduction, the company’s annual unit gross profit margin will remain at 18%.
The power generation business operates efficiently, and the rolling development of the power station continues to obtain investment income. According to the statistics of the Energy Bureau, the utilization hours of wind power from January to February were 323 hours, a year-on-year decrease of 23%, and 232 hours in March alone, a year-on-year increase of 16%. The wind speed of the industry decreased slightly from January to February, and returned to normal in March. The company’s power generation business operated stably and efficiently. The investment income of 1q22 company was 566 million yuan, compared with 47 million yuan in the same period last year, a significant increase year-on-year, mainly due to the income from the sale of power stations.
The profit margin welcomes the growth, and the expenses show a downward trend during the period. 1q22’s gross profit margin and net profit margin were 26.49% / 19.67% respectively, with a year-on-year change of 5.57/14.03pct respectively. In terms of period expenses, the period expense rate of 1q22 company was 9.55%, with a change of – 3.1pct compared with the same period last year. Among them, the sales expense rate, management expense rate (including R & D expenses) and financial expense rate were 4.07% / 4.84% / 0.64% respectively, with a change of – 1.56 / – 1.84 / + 0.30pct compared with the same period last year.
Profit adjustment and investment suggestions
We expect the company to achieve net profits of 3.8 billion yuan, 4.7 billion yuan and 5.4 billion yuan from 2022 to 2024, with a year-on-year increase of 22%, 25% and 15% respectively. The current share price corresponds to 12, 9 and 8 times of PE in the three years, maintaining the rating of “overweight”.
Risk
Policy risk, market competition risk, the risk of lifting the ban on restricted shares and the risk of reducing the holdings of major shareholders.
