The infrastructure leader of central enterprises with a total market value of more than 110 billion yuan announced last night that it would raise 15 billion yuan to invest in offshore wind power and pumped storage projects. In April, the newly signed energy and power business of the company doubled month on month, exceeding the sum of the newly signed scale from January to March. The gross profit margin of the real estate sector fell sharply last year, which dragged down the company’s performance. At the beginning of the year, it was announced that it planned to replace the assets of the real estate sector with the assets related to the high-quality power grid auxiliary industry of the controlling shareholder.
Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) announced yesterday that it plans to raise an additional fund of no more than 15 billion yuan, and the net fund raised after deducting the issuance expenses will be used for high-quality engineering contracting projects, investment and operation projects in the field of strategic development, offshore wind power survey and construction business equipment procurement projects, replenishing working capital and repaying bank loans.
According to the announcement, the above three categories of projects also include a number of sub projects, such as the construction general contracting project of Lot 1 (Qianbao Wuhe) of Shenzhen Huizhou intercity Qianhai Free Trade Zone Zhiping section of Shenzhen metropolitan area intercity railway in Dawan District, Guangdong, Hong Kong and Macao, No. 1 350MW offshore wind power EPC project in jin’ou, Vietnam , Yunyang Jianquan pumped storage power station project , etc.
Previously, Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) released the business data announcement, which showed that the newly signed contract amount from January to April was 333831 billion yuan, a year-on-year increase of 23.49%. In April, 86.252 billion yuan of new contracts were signed in a single month, a year-on-year increase of 121.07%
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% respectively. Among them, 4 month new energy and power business signed 63.4 billion yuan, an increase of 119% month on month, exceeding the cumulative new signing scale from January to March this year
According to public information, Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) main businesses are engineering contracting and survey and design, power investment and operation, real estate development, equipment manufacturing and leasing, etc. According to the latest disclosed annual report data, power investment and operation sector’s new energy business has developed rapidly , with a revenue of 7.33 billion yuan in 2021, a year-on-year increase of 17.2%, and gross profit margin of 58.1%
At the same time, the company also disclosed in the annual report that the total investment plan arrangement this year is expected to reach 130.75 billion yuan, including 52.213 billion yuan for the energy and power sector and 48.332 billion yuan for new energy projects
It is worth noting that the real estate sector, which accounts for the second largest proportion of revenue, was comprehensively affected by factors such as the lower than expected profit of commercial real estate, 2021 gross profit margin was only 11.85%, down 7.25% year-on-year
In addition, Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) 1 announced on January 6 that it is planned to replace the assets of the real estate sector with the assets related to the high-quality power grid auxiliary industry of the controlling shareholder.
Everbright Securities Company Limited(601788) analysts sun Weifeng and Feng Mengqian said in the Research Report on May 20 that at the end of April, the central government set the tone to raise the importance of infrastructure investment to the strategic level of national security, and pointed out that the main direction of this round of infrastructure investment is the construction of water network, road network and energy network. Combined with the caliber of the Bureau of statistics in April, the investment growth rate of each sub industry in the infrastructure field has maintained strong toughness (positive growth in a single month), it is judged that the force of the “steady growth” policy has been transmitted to the enterprise level, and the momentum of the infrastructure industry chain is heating up against the trend.
According to the profit forecast and valuation calculation, Yue Hengyu and Tang Xiao, analysts of China Merchants Securities Co.Ltd(600999) analyzed in the Research Report on May 21 that the net profit attributable to the parent company of Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) is expected to be 10.094 billion yuan in 2022, the year-on-year growth rate of is 17%, and the growth rate of in the following two years remains at about 15%.
