In 2021, revenue increased significantly, net profit decreased, and wind power and photovoltaic sectors became the main profit points of the company.
In 2021, the revenue was 13.178 billion yuan (+ 30.99%), the return net profit was 450 million yuan (- 5.79%), and the non-return net profit was 361 million yuan (+ 11.45%). In 2021, the business revenue of all sectors of the company increased significantly, including thermal power, wind power, photovoltaic, thermal power, operation and maintenance and other revenue of 42.7,25.8,7.3,13.2 and 2.28 billion yuan respectively, an increase of 7%, 39%, 34%, 16% and 122% respectively. Wind power and solar power sectors have become the main support of the company's revenue and profits.
The decline in profits is mainly due to high coal prices and heavy losses in the thermal power sector.
Both gross profit margin and net profit margin fell, dragging down ROE. In 2021, the company's gross profit margin is 21.30% (- 1.47pct) and net profit rate is 5.95% (- 1.98pct). Among them, thermal power, wind power, photovoltaic, thermal, operation and maintenance and other gross profit margins are 11% (- 1.0%), 53% (- 0.7%), 47% (- 8.5%),-38% (- 11.7%) and 9% (+ 9.3%) respectively. The main reason is the decline in the profitability of thermal power and thermal energy sectors as a result of the sharp rise in coal prices. The decline in the gross profit margin of the photovoltaic plate is mainly due to the decline in unit utilization hours. In 2021, photovoltaic units utilized 1223 hours per hour, a decrease of 191hours compared with the same period last year. ROE was 4.65% in 2021, down 1.66pct from a year earlier, mainly due to a decline in net interest rates.
The company continues to strengthen the development of new energy, and strive to achieve the "secondary transformation". The company clearly defines the development strategy of the 14th five-year Plan, vigorously develops new energy, and initially completes the whole industrial chain of hydrogen energy industry by 2025. The installed capacity is more than 2000 kilowatts, the proportion of clean energy is more than 90%, and biomass energy and electric energy are used to replace them. By the end of the 20th, the company's total installed capacity is 10.45GW, of which new energy installed 7.15GW, thermal power installed 3.3GW, the proportion of new energy installed is 68.41%.
Since the second half of 2021, the company has invested in photovoltaic projects in many provinces and cities and set up two subsidiaries operating new energy, energy storage and smart energy to accelerate the pace of the second transformation.
Risk hint: industry policy is not as expected; electricity consumption is declining; coal prices are rising sharply.
Investment advice: raise your earnings forecast and maintain your "buy" rating.
Due to the rapid growth of new business revenue, the company raised its profit forecast and maintained its "buy" rating. We estimate that from 2022 to 2024, the operating income of the company will be 157,176,19.4 billion yuan (the original value of 147,2023 yuan in 2022 and 2023 yuan), an increase of 19%, 12% and 11% respectively over the same period last year. The net profit of returning home is 15.4,19.6 and 2.24 billion yuan (12.2 yuan and 1.54 billion yuan in 2022 and 2023) respectively, up 195%, 50% and 14% over the same period last year. The EPS is 0.55,0.70,0.80 yuan, and the current stock price corresponding to PE is 15.5,12.1 and 10.6x. The company's thermal power and thermal power businesses make less profits, and the main profits contribute to new energy, giving the company 18-20 times PE in 2022, corresponding to a reasonable value of 9.90-11.00 yuan per share, with a premium space of 16% to 29% over the current stock price, maintaining a "buy" rating.