Carrying the ambition of "double carbon" of a major economic province, and the coordinated development of water and scenery: as the development and operation platform of the renewable energy business of Zhejiang Energy Group, the company has formed a power structure for the coordinated development of water, wind and light. Bearing the "double carbon" ambition of Zhejiang, a major economic province, the company's "14th five-year Plan" development plan puts forward: strive to increase the installed scale of renewable energy to 1000 kilowatts by the end of the 14th five-year Plan.
Water, wind and light: hydropower is the foundation of the company. among them, the average grid electricity price of hydropower units in Zhejiang Province reached 0.54 yuan / kWh in 2021, which is significantly higher than that of the same industry. From the perspective of seasonal factors, the output of hydropower and wind power are highly complementary; from the perspective of regional factors, the peak shaving and transmission of photovoltaic can be provided by the existing hydropower stations, which are also complementary. Under the goal of "double carbon", the company adheres to the concept of "regional focus and key breakthrough", focusing on the layout of sea breeze resources along the coast of Jiangsu and Zhejiang; with the accelerated cost reduction trend of the photovoltaic industry chain, the company is based in Zhejiang to accelerate the layout of photovoltaic projects nationwide. In addition, the company actively invests in the same industry, and the contribution of investment income to profits continues to improve.
Investment suggestion: as the development and operation platform of the renewable energy business plate of Zhejiang Energy Group, the company has formed a good structural layout for the coordinated development of water, wind and light; the original hydropower business has formed a complementary pattern with wind power and photovoltaic business in time and space, respectively. Bearing the "double carbon" ambition of Zhejiang, a major economic province, smooth financing channels are expected to support the landing of the company's "14th five-year Plan" new 10GW new energy installation target. It is estimated that the annual EPS of the company on 22-23-24 is 0.52, 0.61 and 0.70, respectively, corresponding to the closing price of PE on January 16, 2023, which is 23.0, 19.6 and 17.1 times, respectively. With reference to the historical valuation level of the company and the release potential of the company's performance, the company is given 20 times PE in 2023, corresponding to the target price of 12.20 yuan, covering for the first time and given a "cautious recommendation" rating.
Risk tips: 1) changes in natural conditions; 2) insufficient consumption of electricity; 3) delay in the issuance of subsidies; 4) rising prices of equipment.