Company profile and shareholding situation
The company is a state-owned hydropower enterprise under the State Grid Sichuan Electric Power Company that mainly produces and supplies electricity. The company's power supply, water supply and other services have a dominant position in the Sichuan Suining market. The company is mainly engaged in electricity, tap water production and sales and integrated energy service business, and has a complete power supply and water supply network and service system. The actual controller of the company is the State Assets Administration Commission, and the parent company that directly controls it is the State Grid Sichuan Electric Power Company.
Company main business and industry analysis
All of the company's main businesses maintained steady growth in 2021, and the positive development trend in the first half of 2022 continued, driving the company to achieve revenue of 1,065 million yuan in the first half of the year, an increase of 29.26% over the previous year; net profit attributable to the parent company was 80 million yuan, an increase of 29.59% over the previous year. Driven by growing demand for electricity and the clean energy business in recent years, the development of the company's hydropower industry has continued to accelerate, providing continuous impetus for business growth. Demand elasticity in the tap water supply industry is relatively low, and it may maintain a steady development trend in the future.
Analysis of the company's competitive advantages
The company has two main competitive advantages. First, long-term regional customer development and maintenance has enabled the company to form a relatively stable electricity and water customer base, and the company's main revenue source is relatively stable. Second, the company's hydropower plant is relatively rich in resources, and the steady growth trend of electricity sold is improving, effectively consolidating the quality of its core assets.
Profit forecasting
The company is expected to achieve operating income of 2,264/25.72/2,868 billion yuan in 2022-2024, net profit attributable to the parent company of 1.21/126/132 million yuan, EPS of 0.29/0.30/0.31 yuan respectively. PE corresponding to 10.59 yuan/share on July 26, 2022 is 37.04/35.46/33.76 times, respectively.
Risk warning
The growth in local electricity demand fell short of expectations, water conditions in the Peijiang River Basin changed greatly, and external business expansion fell short of expectations