The revenue grows steadily, and the development of the double main business is getting better and better.
The company issued a 21-year performance announcement, annual revenue of 6.503 billion yuan, year-on-year + 16.6% (20-year adjustment, the same below), net profit of 236 million yuan, year-on-year-29.1%, return to mother net profit of 221 million yuan, year-on-year-28.7%. The decline in net profit was mainly due to a 209 million gain from the 20-year buyback and cancellation of priority bills, which was + 91.8% year-on-year after deducting the impact. After 19 years of holding, combined with the advantages of the company, Shuifa Group has positioned the development of the dual main business of green building and new energy, and its operation has improved steadily in 20-21 years. We believe that the current company structure is smooth and the operation is steadily improving. The new energy "14th five-year Plan" installation 20GW goal is worth looking forward to.
Green building business performance is excellent, wind power EPC major shareholders support strong business split, curtain wall and green building business revenue of 1.663 billion yuan in 21 years, + 46% year-on-year.
It is mainly due to the weakening of the impact of the epidemic in the past 21 years, and the successful completion of the company's construction project. Fengjing EPC achieved revenue of 3.44 billion yuan in 21 years, + 34% of the same period last year. Among them, the revenue of wind power reached 3.09 billion yuan, + 124.1% compared with the same period last year. The construction of 500MW onshore wind power in Tongyu County (invested by Hydropower Group) is the main reason for the increase in revenue.
Over the past 21 years, the revenue of the power station has reached 456 million yuan, which is + 40% compared with the same period last year. 21 years to achieve installed grid-connected 0.59GW (year-on-year + 32%), and yet to be grid-connected 0.04GW, under construction 0.1GW.
The overall gross profit margin has not changed much, the proportion of long debt increases and optimizes the debt structure the company's overall gross profit margin is 16.5%, year-on-year + 0.1pct, mainly due to the company's adjustment of business structure, the reduction of photovoltaic EPC business with low gross profit margin and the shift of focus to wind energy EPC. Among them, the operation of curtain wall and green building / photovoltaic EPC/ wind energy EPC/ power station is 8.5%, 2.3%, 15.6%, 59.4%, respectively, compared with-3.6pct /-10.4pct /-3.3pct/+6.6pct. The decline in gross profit margin of curtain walls and green buildings is mainly due to the increase in commodity prices, while the decrease in gross profit margin of photovoltaic EPC is due to the increase in the price of components and brackets (such as aluminum). The company's sales / management / financial expense rates are 1.3%, 6.3%, 4.4%, respectively, compared with the same period last year-0.1pct/-1.2pct/+0.4pct. The asset-liability ratio is 67.9%, year-on-year + 1.6pct. In terms of debt structure, the company's long-term / short-term borrowing ratio is 79.6% / 20.4%, long-term debt is year-on-year + 18.9pct, and the debt structure is constantly optimized.
Green buildings take advantage of the wind, sufficient funds to help 2GW operation and installation target housing department requires 50 million square meters of ultra-low / near zero energy consumption buildings to be built during the 14th five-year Plan period, which is + 400% more than the same period of the 13th five-year Plan. The company has been deeply engaged in the field of green buildings for many years, with 22 years of related orders-on-hand nearly 3 billion, and won the bid for a single large-scale green building project 250 million (photovoltaic curtain wall of Suzhou Huamao Center). In addition, take large-scale projects as the benchmark, actively explore energy-saving transformation projects in urban renewal. We believe that 22 years will be the key year for the company to complete the installation of 20GW in the "14th five-year Plan". The company plans to increase the scale of 2GW installation (investment / merger and acquisition of each 1GW). At present, it has started 750MW, including photovoltaic 650MW (centralized / distributed 300MW/350MW) and wind power 100MW. In terms of funds, it is estimated that there will be an increase of 3.7 billion in 22 years (debt / equity funds are 3.2 billion / 500 million respectively), excluding the impact of maturing foreign debt (1.5 billion yuan due in December 22), a net increase of 2.2 billion. The construction of sufficient funds superimposed investment projects is smooth, and we expect to achieve the 2GW target in 22 years.
Green Power is expected to expand its operating business and maintain its "buy" rating
During the 14th five-year Plan period, driven by the goal of "double carbon" and related policies, the company will mainly focus on green building and new energy business, superimposed on Shuifa Group, and its operating condition will continue to improve, but considering the slight lag in the loading of operating assets, the company's 22-24 net profit is expected to be 3.19 million RMB 6.43 billion RMB (the previous value is 394 million RMB in 2223). Corresponding to HK $3.92 million 7.91 Wind, the current comparable company's 22-year Wind consensus expects the average PE to be 10.64 times. Taking into account the company's outstanding future green building + new energy dual main business, 22-24 return net profit CAGR+67%, gives 22-year PE 12x, corresponding to the target price of HK $1.87, maintaining the "buy" rating.
Risk tips: the installed capacity of Fengguang is not as expected, the prices of raw materials and components are rising, the growth of power plant operation is not as expected, and the risk of cross-market valuation