1H22's home net profit is + 24% compared with the same period last year, slightly lowering its profit forecast.
China and Fujian Energy reported that 1H22 achieved 920 million yuan in revenue, + 23% in the same period last year, and 420 million yuan in net profit, + 24% in the same period last year, equivalent to 45% of Huatai's forecast for the whole year; corresponding to 370 million yuan in 2Q22 revenue, + 5% in the same period last year, and 130 million yuan in net profit,-12% in the same period last year. In the first half of the year, the utilization hours of land wind in Fujian increased significantly, the increment of utilization hours of sea wind was relatively small, and the net profit of onshore / offshore wind power was 32% higher than that of the same period last year. With reference to the change of hours utilized by 1H22, the forecast of wind power and biomass income is lowered slightly, and the net return profit for 22-24 years is slightly reduced to 8.9 shock 9.5 / 1.01 billion yuan (previous value: 9.4 shock 10.0 / 1.06 billion yuan), corresponding to 0.47 EPS 0.50 shock 0.53 yuan. Under the expected asset injection, the company's performance growth potential is outstanding, maintaining the 22-year 20x target PE (relative to the comparable company's average 15.7xPE premium of 4.3xmax 27%, the comparable average repair is obvious, and the premium ratio is narrowed), and the target price is 9.4 yuan (previous value: 9.8 yuan, based on 22-year 20xPE). Maintain the buy rating.
Fujian wind resources are better than the same period last year, and the profit contribution of wind power in the province is significant. By the end of June, the company had installed 957300 kilowatts of wind power in the grid, an increase of 108 kilowatts over the same period last year, of which onshore wind power / offshore wind power / photovoltaic / biomass was 61.13 GW 29.6 GW 2.0 GW respectively. The year-on-year power generation of 1H22 Company + 24% MagneQ2 is + 10% year-on-year, thanks to an increase of 108000 kilowatts in offshore wind power installation and a year-on-year increase in Fujian onshore / offshore wind power utilization hours by 200 kilowatts (+ 14 kilowatts).
The net profit of Min Neng Investment (Fujian onshore wind power) / China Minhai Power (Fujian offshore wind power) in 1H22 is 32% to 2.3 billion yuan compared with the same period last year, with a significant profit contribution.
Major shareholders fully support and actively develop other new energy projects
According to the commitment of the major shareholder investment group, it is expected to choose the opportunity to start a series of asset injection in the future, adding a strong driving force for the sustained high growth of the company's performance. Among them: 1) the installed scale of Pinghai Bay Marine Power Phase III is 308000 kilowatts, which is higher than the company's existing sea power scale (296 million kilowatts). At present, it is managed by China Minhai Power; 2) the first 300,000 kilowatts of Yongtai Min Investment pumped Storage (1.2 million kilowatts) was officially put into production on August 11 and is nearing completion; 3) 300,000 kilowatts of Ningde Xiapu Haidian area B of the Group has been approved, waiting to start construction. 50MW Yuguang complementary to the new Fuqing house independently developed by the company is going through the filing formalities.
Asset injection is expected to significantly increase performance and maintain buy rating
The company's current stock price corresponds to 15.5 PE 14.5 + 13.6x for 22-24 years, and the 22-year PE of the company is basically the same as the average Wind consensus forecast of comparable companies. If the injection of the third phase of Pingping Bay was completed in 23 years, the company's 22-24 return net profit (CAGR) (37%) was higher than the average of comparable companies (33%). Under the expected asset injection, the company's performance growth potential is outstanding, giving the company a 22-year 20x target PE (relative premium of 4.3xmax 27%), with a target price of 9.4 yuan, reiterating the buy rating.
Risk hints: the construction of new projects is not as expected; the risk of power restriction; the lag risk of renewable energy subsidies.