Event: the total amount of funds to be raised by the company in this non-public offering will not exceed 2.07 billion yuan, which will be used for the new Wuchuan Wind Farm and Dongying Marine Base. The company successfully won the bid for wind turbine foundation piles and ancillary components of Shandong Energy Bozhong A500MW offshore wind power project.
Optimize the layout of the wind power industry and enhance sustainable profitability. As of 21Q3, the company holds four grid-connected wind farms with a total capacity of about 363.8MW, realizing revenue of 247 million yuan and net profit of 73 million yuan, and holding grid-connected photovoltaic power stations with a total capacity of about 118MW, with revenue of 92 million yuan and net profit of 38 million yuan. The company's revenue from manufacturing operations such as fan towers accounts for 84.5%, and revenue from new energy power generation accounts for 15.5%. The gross profit margin of new energy power generation is about 70%, which is much higher than the 20% profit margin of wind power equipment manufacturing, greatly improving the overall profitability. The company plans to invest 790 million yuan into Wuchuan 150MW wind storage integration project. Wuchuan County belongs to Class I wind energy resource area, which has a long duration of annual effective wind speed and has high development value. There are 24 wind turbines with a single unit capacity of 6.25MW to be installed. It is estimated that the after-tax IRR of the project is 11.23%, and the payback period of investment is 8.12 years. The company will accelerate the reserve and development of wind farm resources, promote cooperation with mainframe manufacturers, reduce operational risks and enhance sustainable profitability.
The rapid development of offshore wind power will improve the layout of sea breeze bases. The company has 12 wind power equipment production bases (including under construction), with a total production capacity of about 630000 tons. Among them, there are 9 land wind bases with a total production capacity of 350000 tons, with a relatively perfect land layout, and only 3 sea breeze bases with a total production capacity of 280000 tons, which are located in Dalian, Yancheng and Shanwei respectively. By 2025, offshore wind power in Shandong Province will start construction of 10 million kilowatts and be connected to the grid of 5 million kilowatts. The development of offshore wind power in Shandong Province is worth looking forward to. In order to better cover the offshore wind power demand in the Bohai Bay area, it is planned to build 300000 tons of sea wind towers and pipe piles in Dongying, with a planned production capacity of 200000 tons in the first phase. Choose to lease the wharf, the construction period of the first phase of the project is 1.5 years, the proposed investment is 460 million yuan, the after-tax IRR is 15.71%, and the payback period is 7.63 years. It is proposed that 230 million yuan will be invested to upgrade the production line of the sea breeze base in Yancheng and Shanwei, and the production capacity of 80,000 tons of sea breeze will be added after the upgrade is completed. It is estimated that the company's sea breeze production capacity will expand to 66 million tons. The company won the Biao stroke electric field pipe pile project, about 166MW capacity, the total weight of the winning bid is about 30, 000 tons, and the total contract price is about 270 million yuan. Downstream sea breeze orders have been released one after another, promoting the rapid expansion of the sea breeze base.
Profit forecast: the rapid development of offshore wind power, the company to improve the layout of sea breeze base. It is estimated that the company's net profit from 2021 to 2023 will be 4.76 / 5.95 / 912 million yuan, corresponding to 22 / 18 / 12 times of PE.
First coverage, given a "buy" rating, with a target price of 18 yuan.
Profit Forecast:
Risk hint: offshore wind power development is not as expected, and sea breeze base production is not as expected.