\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 483 Fujian Funeng Co.Ltd(600483) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the operating revenue reached 12.077 billion yuan, a year-on-year increase of 26.37%; The net profit attributable to the parent company was 1.268 billion yuan, a year-on-year decrease of 15.18%. In the first quarter, the operating revenue was 2.534 billion yuan, a year-on-year decrease of 10.69%; The net profit attributable to the parent company was 644 million yuan, a year-on-year increase of 16.94%.
High coal prices put short-term pressure on the company’s performance in 2021. The main reason for the company’s performance damage in 2021 is the significant increase in fuel costs of coal and gas power businesses. In 21 years, the company’s raw material cost was 7 billion, a significant increase of 50.75% compared with 4.645 billion last year. Specifically, the cost of power supply business increased by 34.29%, the cost of heating business increased by 101.27%, the annual gross profit margin of power supply business was 18.36%, and the gross profit margin of heating business was 11.17%, reduced by 6 percentage points and 15 percentage points respectively. The company’s coal and electricity business improved in the first quarter of 2022. With the gradual stabilization of coal prices and the implementation of the long-term cooperation mechanism in May, we believe that the company’s coal and electricity business is expected to usher in significant improvement.
The three major sea breeze projects were put into operation and contributed to the performance in 2022. By the end of 2021, the company had a total installed capacity of 5.9933 million KW, including 1.809 million kw of wind power generation, 1.528 million kw of natural gas power generation, 1.2961 million kw of cogeneration, 1.32 million kw of coal-fired pure condensation power generation and 40200 kW of photovoltaic power generation. In 2021, 779000 kW sea breeze will be added, including 200000 kW in Shicheng, 200000 kW in Pinghai Bay, 379000 kW in Changle offshore C and 72000 kW in land breeze. The annual offshore wind power generation was 922 million kwh, a year-on-year increase of 191.23% compared with 317 million kwh in the same period last year. The revenue of offshore wind power was 774 million kwh, an increase of 191.94% compared with 231 million yuan in the same period last year, and the gross profit margin was close to 70%. The utilization hours of land wind and sea wind in Fujian Province are high. We believe that the company’s wind power business segment will boost the company’s performance growth in 2022.
Investment advice. Considering the improvement of coal power business and the performance contribution of wind power business, especially Haifeng business, we expect the company to achieve revenue of RMB 13.465/13.488/13.593 billion, net profit attributable to parent company of RMB 2.434/25.84/2.818 billion, EPS of RMB 1.25/1.32/1.44 and corresponding PE of 9.6/9.04/8.29 from 2022 to 2024. Give the company a PE valuation of 14-17 times in 2022, with a reasonable range of share price of 17.5-21.25 yuan, and give the company a “buy” rating.
Risk tip: gas and coal prices fluctuate, wind power utilization fluctuates hourly, and the growth of power demand slows down.
