Event: the company issued an announcement on September 3 and 6, and the Zhejiang State-owned assets Supervision and Administration Commission issued a reply on agreeing to transfer the property rights of Zhejiang Hydropower Industrial Company free of charge. After the transfer, Hydropower Industry will become the second-class wholly-owned subsidiary of Zhejiang Energy Group, the controlling shareholder of the company. for this reason, Zhejiang Neng Group has added a commitment to avoid potential peer competition.
Comments: shareholders make new commitments and asset injection can be expected. The company's main business is the investment, development, construction and operation management of hydropower, wind power and photovoltaic projects. Due to the existence of small hydropower business in hydropower industry, there are potential competition problems with the company after the completion of this transfer. Zhejiang Neng Group, the company's controlling shareholder, has added a commitment to avoid potential inter-industry competition, and it is proposed that the wholly-owned subsidiary Zhejiang Neng assets entrusts the company to manage the operating assets such as the holding of hydropower industry and the participation in hydropower stations. Among them, the holding / shareholding installed capacity is 0.85 million kilowatts, and the monthly operation and management fee is 100000 yuan. In addition, it is promised to inject all the small hydropower business of the hydropower industry into the company within 36 months from the date of completion of the registration of free transfer of industrial and commercial changes. After the new commitment of the company's controlling shareholders, the company's hydropower installation is expected to further increase through asset injection, and profitability will be further enhanced.
The installed capacity is increasing rapidly, and the water scenery is developing cooperatively. The company's 22H1 added 534000 of holding capacity, with a total installed capacity of 4.3281 million kilowatts, all of which are renewable energy, of which water / wind / light is 113.22, 128.62, 1.907 million kilowatts, accounting for 29.57%, 11.85%, 58.58%. 22H1 sells 4.254 billion kilowatt-hours of electricity, of which water / wind / light accounts for 37.8%, 31.0% and 31.2%, which is evenly distributed. According to the regional division of electricity sales, hydropower accounts for 72%, 28%, wind power, 56%, 33%, 11%, and 81%, 16%, 3%, respectively. Projects under construction mainly include Jiangsu and Zhejiang Haifeng, Golmud photovoltaic, multi-site photovoltaic composite projects, etc.
Excellent financial performance and greatly increased profitability. Mainly due to the improvement of installed capacity and cost control capacity, the company's 22H1 revenue / homing net profit / CFO was 25.08x693, 928 million yuan, an increase of 80.72%, 174%, 240%, 61.14%, 37.49%, and 4.26/13.04pcts, respectively, and profitability greatly improved. And abundant cash flow helps the company to continue to develop new energy projects and maintain a high growth rate of performance.
Profit forecast: from 2022 to 2024, the company's operating income is estimated to be 58.58 yuan, and the net profit is 1.284 million yuan. The net profit of the company is 1.582 million yuan, and the profit forecast is 0.76 yuan for EPS, which corresponds to PE21.52/17.46/15.69 times. Coverage for the first time, giving a "overweight" rating.
Risk hint: the progress of new energy projects is not as expected, and the water and scenery resources are not as expected.