Event: Golden Crown shares released semi-annual report 2021: the company's H1 operating income in 2021 was 398 million yuan, an increase of 20.99% over the same period last year, and realized a net profit of 7 million yuan, turning losses into profits over the same period last year.
Comments:
Thanks to the construction of the new power system, the smart grid equipment is progressing smoothly. In the first half of 2021, major power generation enterprises across the country invested 189.3 billion yuan in power supply projects, an increase of 8.9 percent over the same period last year; investment in power grid projects totaled 173.4 billion yuan, an increase of 4.7 percent over the same period last year, and power investment continued to rise steadily. In the first half of 2021, the company won a total of 330 million yuan in the national network system and other large enterprises and institutions, ranking 11th in the overall ranking of the total amount of tender procurement of State Grid and provincial companies. In the first half of 2021, the revenue of the company's C-GIS intelligent ring network cabinet, power information collection equipment and intelligent high-voltage switchgear increased by 90%, 642% and 43% respectively compared with the same period last year, and the gross profit margin was-7.89pct,-23.52pct and + 1.17pct respectively compared with the same period last year.
The scope of operation of the charging pile has been expanded and the energy storage business has set sail. According to the statistics released by the China charging Alliance, the number of charging piles in operation in Nanjing Nengrui, the company's subsidiary, has increased significantly since December 2020. As of June 2021, Nanjing Nengrui was operating 5697 charging piles, an increase of 21% over November 2020. In the first half of 2021, the company established energy storage business as the key development direction, and in the future it will focus on the overall integration of energy storage system and the independent R & D and production of PCS two-way energy storage converter. The company's energy storage products and solutions will be introduced to the market in the second half of the year. On August 26, 2021, the company issued a notice on the intention to change the company's business scope and amend the articles of Association, which intends to include the R & D, production, sales and service of photovoltaic inverters, wind energy converters and energy storage bi-directional converters, electrochemical energy storage equipment R & D and production, integrated supply and installation, service, commissioning, operation and maintenance, etc.
On August 20, 2021, the company issued the announcement on the by-election of Directors, nominating Xie Lingjiang as a non-independent director candidate for the fifth board of directors of the company. Xie Lingjiang was the party committee secretary and chairman of Luoyang Gudu Lijing Holdings Group Co., Ltd., and is currently a director of Luoyang Gudu Lijing Holdings Group Co., Ltd.
Earnings Forecast, valuation and rating: we maintain the original profit forecast and expect the company's 21-23 net profit to be $1.552 million, while the current share price corresponds to a PE of 48, 28pm, 20X. The company is based on power transmission and distribution and control equipment, charging pile manufacturing and operation, layout of energy storage business, strong growth momentum in the future. Maintain a "buy" rating.
Risk tips: raw material price fluctuation risk, market competition risk, industry policy risk.