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Southeast Grid issued an announcement on the evening of September 12: the company signed an "Investment Framework Agreement" with the Management Committee of Shanxi Yuncheng Economic and technological Development Zone, and the project involves an estimated total installed capacity of about 500MW, which is the first project for the company to promote the landing outside the province in the whole county.
Comments:
Company and Shanxi Yuncheng Economic Development Zone signed a framework agreement, estimated photovoltaic installed capacity 500MW: the company announced on September 12, and Shanxi Yuncheng Economic and technological Development Zone Management Committee signed an "investment framework agreement", the project involves the total installed capacity is estimated to be about 500MW, 4 yuan / W of distributed photovoltaic power station investment cost calculation, the corresponding project scale of 2 billion yuan. The specific mode of cooperation is similar to the Xiao Jingkai agreement that has been signed. The company plans to set up a joint venture of 100 million yuan with the local investment company Huazhao Holdings in Yuncheng Economic Development Zone. The joint venture company is committed to the development of roof distributed photovoltaic such as public buildings, industrial and commercial factories and rural houses, and invests in photovoltaic business and BIPV general contracting project construction. All taxes will be handed over to Yuncheng Economic and technological Development Zone. The formation of Yuncheng Economic and technological Development Zone as the core, radiation northwest BIPV photovoltaic construction industry chain.
Yuncheng Economic Development Zone will support the company to develop distributed photovoltaic power generation projects in government-invested roof resources and coordinate other roof resources in the area. We believe that this is the first project for the company to land outside the province, which means that the company has fast execution and strong competitiveness in the photovoltaic county.
Revenue in a single quarter reached record highs, and EPC revenue increased by more than three times compared with the same period last year: the company's 2021H1 realized revenue of 5.364 billion, + 31.83% compared with the same period last year; and the net profit of returning home was 360 million, + 51.75% compared with the same period last year. Excluding the main chemical fiber subsidiary, Southeast New Materials, the net profit was 294 million, + 23% compared with the same period last year. On a quarterly basis, Q1-Q2 revenue growth rates were + 37.23% and 27.66% respectively, and performance growth rates were + 51.42% and 51.99% respectively. According to the type of business, the revenue of steel structure subcontracting business was 2.955 billion, which was + 7.25% compared with the same period last year; the total contracting income of the project was 743 million, an increase of 319.37% over the same period last year, accounting for 13.86% of revenue; and the revenue of chemical fiber business was 1.564 billion, which was + 69.01% of the same period last year. In terms of orders, the company's 2021H1 accumulatively signed and won the steel structure contract value of 11.944 billion, + 20.67% compared with the same period last year. In addition, the company also newly established Zhejiang Southeast carbon Zhonghe Technology Co., Ltd., mainly engaged in roofing and photovoltaic integrated building development, construction and investment, actively promote the extension of the industrial chain.
Gross profit margin 14.20%, net profit rate 6.66%, profitability continues to improve: the company's 2021H1 gross profit margin is 14.20%, year-on-year + 0.23pct, sub-business gross profit margin of 13.81%, year-on-year + 0.18pct, steel structure subcontract 15.94%, year-on-year-3.26pct, chemical fiber 8.37%, year-on-year + 11.13pct. The period rate is 7.24%, year-on-year-0.30pct. The net interest rate is 6.66%, year-on-year + 0.94pct, of which Q2 single-quarter net interest rate is 6.97%, the highest in history. The net operating cash flow was-530 million yuan, which was 564 million yuan more than the same period last year, mainly due to the increase in payment items caused by the expansion of business scale.
Profit forecast, valuation and investment rating: the company's main business strength is strong, strategic transformation EPC has achieved remarkable results, and BIPV enables long-term development. We raised the company's EPS forecast for 2021-2023 to 0.63,0.98,1.25 yuan, corresponding to PE 17x, 11x, 9x, steel structure engineering enterprises are generally valued in 10x~20x, the company officially entered the BIPV market, distributed photovoltaic is progressing smoothly, giving the company 20 times valuation in 2022, the target price is 19.6 yuan, maintaining the "strong push" rating.
Risk hint: EPC business development is not as expected, commodity prices fluctuate sharply, project payback is not as expected.