The location advantage of the power plant is remarkable, and project development is progressing steadily
The company's subsidiary hydropower and offshore wind power are mainly located in Zhejiang Province and Jiangsu Province, where electricity demand is strong and consumption capacity is good. Offshore wind power projects have great development potential; the company's photovoltaic power plants and onshore wind power are mainly located in the western region of China, where solar and wind energy resources are rich, and photovoltaic and onshore wind power resources have good development value. By the first half of 2022, the company had actively promoted the construction of the Taizhou No. 1 300,000 kilowatt offshore wind power project, completed an additional 100,000 kilowatts of installed capacity, and purchased about 400,000 kilowatts of installed capacity. Furthermore, the company focuses on key regions and major projects, the province focuses on the “Scenery Multiplication Plan”, targets large-scale and base-based development of wind and photovoltaic power projects outside the province, and makes every effort to reserve resources for the company's development.
Collaborative development of multiple industries to promote steady growth in the company's earnings
At present, the collaborative development pattern of the company's three “Feng Guang Shui” industries has been formally formed. Judging from seasonal factors, the seasonal distribution of wind energy resources and hydropower resources complements each other; judging from regional factors, the regional nature of solar energy resources complements water resources; the dry water season in the watershed where the company's hydropower plant is located is the season when the company's wind power generation is frequent; during the rainy season, wind power and photovoltaic power generation are reduced, and hydropower is the peak period for power generation. The collaborative development of the three major industries has provided a strong guarantee for the steady growth of the company's operating efficiency.
The new energy industry has broad prospects. The shareholder background provides strong support. In the context of the “double carbon” goal and the construction of a “new power system”, new energy generation will gradually become the main power supplier. The role of new energy in the national energy strategy is even more important. Implementing renewable energy replacement actions and constructing a new power system with new energy as the main focus is an inevitable choice for building a clean, low-carbon, safe and efficient energy system.
As a state-controlled comprehensive energy enterprise, the company's main operating goal in 2022 is to complete the annual power generation capacity of 7.602 billion kilowatt-hours and achieve revenue of 4.398 billion yuan. The company's performance is expected to grow further in the future.
The first coverage gave an “increase in holdings” rating
We expect that in 2022-2024, the company can achieve operating income of 4,308 billion yuan (up 48.07% year on year), 60.02 and 7.602 billion yuan, a compound increase of 37.73% over the next three years based on 2021; net profit attributable to the parent company 8.28 (up 82.05% year on year), 14.02 billion yuan and 1,935 billion yuan. The total share capital is 2.08 billion shares, corresponding to EPS of 0.4, 0.67 and 0.93 yuan. On September 26, 2022, the stock price was 11.55 yuan, and the corresponding market value was 24.024 billion yuan. The 2022-2024 PE was about 19, 15, and 14 times. The company is currently in a stage of rapid development. By seizing the “window period” for renewable energy development and expanding project cooperation and development channels, it has achieved a transformation from a single hydropower industry to a “wind, light and water” multi-industry collaborative development. The new energy business is located in key regions of the country. For the first time we covered it, we gave it an “increase in holdings” rating.
Risk warning: New energy projects are falling short of expectations, renewable energy subsidies are lagging behind, and water and landscape resources are falling short of expectations.