\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 669 Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) )
Event: from January to April 2022, the company signed 333831 billion yuan of new contracts, an increase of 23.49% at the same time; In April, 86.252 billion yuan of new contracts were signed in a single month, an increase of 121.07% in a single month. The comments are as follows:
In April, orders increased by 121.07% in a single month, maintaining a bright growth trend under the high base. The growth rate of new contracts signed by the company from January to April was 23.49%, and the single month contracts in April increased significantly by 121.07%; Under the high base (new contracts signed from January to April 2021 increased by 41.85% year-on-year), it maintained a bright growth trend. In terms of business, from January to April, the newly signed contracts in the energy and power sector, water resources and environment sector and infrastructure sector were 114486 billion yuan, 98.767 billion yuan and 116827 billion yuan respectively, accounting for 34.29%, 29.59% and 35.00% respectively. In terms of regions, the amount of newly signed contracts at home and abroad from January to April was 282383 billion yuan and 51.448 billion yuan respectively, an increase of 30.71% and – 5.23% respectively. We expect this year to be the year when the company’s new energy projects will be launched; On the other hand, the steady growth of infrastructure construction drives the company’s traditional business to develop at the same time, and the high growth of the company’s orders this year is expected to continue.
The industry has “unprecedented new opportunities”. Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) as the leader of global clean and low-carbon energy construction, it is accelerating the investment and development process of new energy and pumped storage projects. In 2021, the company will give full play to the traditional advantages of planning and design, seize the development resources of new energy and pumped storage, and actively obtain the construction tasks of new energy and pumped storage. The newly signed contract amount of wind power business was 86.52 billion yuan, a year-on-year increase of 29.8%; The newly signed contract amount of photovoltaic power generation business was 37.98 billion yuan, a year-on-year increase of 84.2%; The newly signed pumped storage power station business contract amount was 20.24 billion yuan, a year-on-year increase of 342.90%. On December 26, 2021, Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) new energy group was officially established in Beijing. On February 25, 2022, the commencement ceremony of 10 new energy projects of PowerChina new energy group was held, with a total installed capacity of 907.4 MW; Meanwhile, as of May this year, the installed capacity under construction and operation of power construction new energy group has exceeded 8 million KW. In addition, the company plans to approve four pumped storage projects this year, with a total installed capacity of about 5 million KW.
The asset delivery and industrial and commercial change procedures of the real estate sector have been completed, and the financing space has been opened. The asset delivery and industrial and commercial change procedures of the company’s real estate sector have been completed. We believe that the stripping of real estate development business will further open the company’s financing space. In 2022, the company plans to achieve an operating revenue of 505 billion yuan and a planned new contract amount of 860 billion yuan, an increase of 12.48% and 10.22% over 2021. This year, the company expects the total investment plan to reach 130.75 billion yuan, including 52.213 billion yuan in the energy and power sector, and 48.332 billion yuan in the new energy project investment plan.
Profit forecast and rating. The company has comprehensively transformed from a leader in the hydropower industry to a new energy investment operator, opening a new chapter of development. At the same time, entrusted by relevant national ministries and commissions, it undertakes the planning and review of clean energy and new energy such as hydropower, wind power, Cecep Solar Energy Co.Ltd(000591) and so on. We expect the company’s bps to be 8.78 yuan and 9.49 yuan from 22 to 23 years respectively, maintaining 1.8 times the price to book ratio in 2022, maintaining the target price of 15.80 yuan and maintaining the rating of “better than the big market”.
Risk warning. Collection risk, business development risk and policy risk.
