SDIC Power (600886): Thermal Power Assets Actively Reduces GDR Approval or Accelerates Overseas Expansion
Event Overview On October 30, 2019, the company released the third quarter of 2019 report: the company achieved operating income of 322 in the first three quarters of 2019.
46 ppm, a six-year increase of 6.
47%; net profit attributable to shareholders of listed companies is 43.
33 ppm, an increase of 20 per year.
51%; basic profit return is 0.
6034 yuan, an increase of 13 in ten years.
89% analysis and judgment: the third quarter of the fastest growth rate of power generation, the average on-grid price of the company in the third quarter of the internal holding company gradually generated power 491.
6.3 billion degrees, an increase of 3 from the same period last year.
In terms of power types, the minimum growth rate of thermal power in the third quarter was 3 from the previous quarter.
72pct, 35 longer per year.
36 pct; the growth rate of hydropower was basically the same as the same period last year, with a slight increase of 0.
07%, the growth rate decreased by 5 compared with the previous quarter.
In the third quarter, the average on-grid prices of hydropower and thermal power dropped by 8 respectively.
54% and 3.
41%, 杭州夜网论坛 resulting in the company’s single-quarter average on-grid tariff reduced to zero.
289, a decrease of 4.
Among the company’s main hydropower plants, Tongzilin, Guandi, Jinping Class I, Jinping Class II, SDIC Dachaoshan, SDIC Small Three Gorges and Baiyin Gorge all experienced declines in the average on-grid electricity prices in the third quarter.
Our judgment is mainly due to the increase in the proportion of market-oriented transactions and the easing of the supply side, which has led to the decline in electricity prices.
Under the combined effect of the forecast of the growth rate of power generation and the decline in electricity prices, the company’s third-quarter revenue was 126.
37 ppm, an increase of ten years.
Obviously, since the second quarter, the reduction of the tax rate has been reduced, 杭州桑拿网 to a certain extent, the company’s profit loss caused by the decline in electricity prices has been eliminated, and the company’s net profit attributable to shareholders of the parent company in the third quarter recorded 20.
5.7 billion, an increase of 1 every year.
Thermal power assets are actively reducing, and the structure of the power generation end is optimized. According to the “Announcement on the Transfer of Shares of Certain Subsidiaries” issued by the company on October 9, 2019, the company intends to list and transfer 51% equity of SDIC Xuancheng held by SDIC55% equity, SDIC Yili 60% equity, Jingyuan Second Power 51.
22% equity, 35% equity of Huaibei Guoan, 45% equity of Zhangye Power Generation, the total listed price is not less than about 26.
The above thermal power projects are relatively weak assets in the company’s thermal power sector. According to the disclosure in the same announcement of the company, the proposed transfer of projects in the first half of 2019 will replace a total of zero.
Through listed transfers, we believe that the company is expected to increase funding flexibility and achieve asset optimization.
According to the company’s “Main Business Data Announcement for the Third Quarter of 2019” released on October 16, the company added 58 new and put into production this year.
40,000 kilowatts, hydropower / photovoltaic / wind power / waste power supplements are 1 respectively.
50,000 kilowatts, allowing the installation of clean energy, the company’s goal to increase the proportion of clean energy power generation is more clear.
GDR issuance is approved, or overseas expansion companies are accelerated on October 29, 2019. Announcement on Issuing GDR and Listing on the London Stock Exchange and Obtaining China Securities Regulatory Commission’s AnnouncementThe registration document was approved and published by the Financial Conduct Authority, and the listing plan on the London Stock Exchange continued to move forward.At present, the company has completed the Afton onshore wind power project in the UK (50,000 kilowatts) in October 2018 and the waste power generation project in Bangkok, Thailand (0.
If the company is successfully listed on the London Stock Exchange, we expect to further enhance the company’s international influence, while providing funding for overseas project expansion and supplementing the company’s operating funds to diversify operating risks.
Investment suggestions The company’s asset-side adjustment is proactive, and its focus is continuously shifting to clean energy, in line with policy guidance and industry development trends.
GDR issuance is progressing smoothly, and overseas business expansion is accelerating.
We estimate that the company’s revenue for 2019-2021 will be 43.2 billion, 44.7 billion and 45.8 billion, with multiple growth rates of 5.
50% and 2.
50%; net profit attributable to mothers is 51.
03 billion, 52.
8.3 billion and 54.
29 ppm, with annual growth rates of 16 each.
52% and 2.
76%, the corresponding EPS is 0.
80 yuan / share, the corresponding PE is 11 respectively.
From an estimation perspective, power generation companies use the PB estimation method, and the company’s latest BPS is 5.
32 yuan (October 30, 2019), the average PB value of comparable companies in the domestic A-share power industry is 2.
05 times, taking into account the company’s divestiture of small thermal power projects, retained profitability of large power plant projects, the quality of assets, the company’s industry average2.
05 times PB, the corresponding sustainable is 10.
Covered for the first time and given a “Buy” rating.
Risk prompts 1) The dry running water affects hydropower generation; 2) The efficiency of thermal power asset disposal is less than expected; 3) The on-grid electricity price trend declines; 4) Fuel price rises upward; 5) The electricity consumption growth rate is lower than expected; 6) The GDR issuance progress is less than expectedexpected.