Event: on the evening of February 26th, the company announced "KuaiBao's annual results in 2015" and "announcement on signing the strategic cooperation agreement for 3GW photovoltaic projects". The company will carry out comprehensive cooperation with Sunshine Power, Zhenfa Group and Shanghai Guxin Investment, including not limited to: domestic and foreign photovoltaic grid-connected power generation project development and construction cooperation; technological innovation cooperation; joint brand promotion, and strive to cooperate to complete the development and construction of 3GW power station within 2016.
Comments:
The net profit of the transformed photovoltaic power station investment operator increased by 1568.51% compared with the same period last year. In 2015, the company achieved revenue of 1.9022659 billion yuan, an increase of 179.68% over the same period last year, and net profit of 136.4054 million yuan, an increase of 1568.51% over the same period last year. This is mainly due to the acquisition of Jiangsu Huayuan New Energy Technology Co., Ltd. in 2015 and the substantial increase in sales revenue and net profit.
Equipment, system integration, investment and operation, multi-platform resources complement each other. In 2015, the company acquired Jiangsu Huayuan Company and fully entered the field of photovoltaic power station and EPC. Sunshine Power is a global leader in inverters and related products, as well as deep ploughing system integration and power station operation. Zhenfa Group is one of the largest photovoltaic power investment and development operators in China, and the scale of construction and installation has reached 3GW. Shanghai Guxin is an investment and operation platform for Anxin Trust in the field of photovoltaic power plants, with strong financing capacity. Multi-party cooperation will help to open up the key equipment, system integration, investment operation and financing chain of the power plant, and improve the quality of the power plant. Accelerate the development of power stations to achieve win-win results.
The 3GW power station cooperation agreement helps the company to accelerate its transformation and has great flexibility in performance. The cooperation agreement of 3GW is expected to generate 24 billion yuan of system integration (EPC and BT) revenue and an average annual electricity revenue of about 3.6 billion yuan, and the company is expected to get some share. In addition, the company's power plant system integration (about 200MW) and holding scale (220MW) are relatively small, and the performance is more flexible.
Cover for the first time and give a "recommended" rating. Combined with Zhenfa Group's commitment to Huayuan New Energy's performance of 259 million yuan, 335 million yuan and 366 million yuan from 2015 to 2017, regardless of the dilution factor, it is expected to achieve EPS0.355 yuan, 0.81 yuan and 1.23 yuan in 2015-2017, corresponding to 51.04,22.40 and 14.83 times PE. In addition, considering that the company is actively engaged in asset mergers and acquisitions in the photovoltaic field, expanding smart home, smart security and graphene business, covering for the first time, it is given a "recommended" rating.
Risk tips: fierce competition brings the risk of a decline in gross profit margin; power plant system integration business does not meet the expected risk; accounts receivable recovery risk.